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While it is true that in some state a lien can be placed, once in court this does not mean that the homeowner would be liable for payment.
liability will lay mainly on the contracts, this mean both the general contract as well as the subcontract. If under the general contract (homeowner and contractor) it states that the home owner will pay for X amount for the completion of the project (like a home), this means that the home owner is only responsible to pay the amount in that contract, without liability for what the contractor subcontracts out.
pretty much if the contract the homeowner signed does not state that they are liable for payment to subcontractors or supplies, then they are not at fault the general contractor would be.
if further clarification is needed you can contact me, please do not that i am not an attorney and the best possible answer would come from an attorney or from the laws and case laws of your state.
~Joey V.~
Source(s):
Education as well as experience with contractors.
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This would generaly be considered a "president clause"
The general contractor is almost always 100% liable for all outsourced work.
Kind Regards,
XDS
Source(s):
My Brain.
My uncle who is a GC.
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Source(s):
My husband is a licensed CA general contractor - I asked him.
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Answered Question
M$2
March 29, 2009 08:27 PM
If a general contractor doesn't pay the subcontractor, is the homeowner liable?
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| April 01, 2009 04:11 PM |
liability will lay mainly on the contracts, this mean both the general contract as well as the subcontract. If under the general contract (homeowner and contractor) it states that the home owner will pay for X amount for the completion of the project (like a home), this means that the home owner is only responsible to pay the amount in that contract, without liability for what the contractor subcontracts out.
pretty much if the contract the homeowner signed does not state that they are liable for payment to subcontractors or supplies, then they are not at fault the general contractor would be.
if further clarification is needed you can contact me, please do not that i am not an attorney and the best possible answer would come from an attorney or from the laws and case laws of your state.
~Joey V.~
Source(s):
Education as well as experience with contractors.
| Asker's Rating: |
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Other Answers (2)
March 29, 2009 08:32 PM
Not unless there is a agreement clause in the general contractors CONTRACT where the owner reserves the right to choose which subcontracts are approved (subcontracted bids) or other clauses reserving other rights then, no. This would generaly be considered a "president clause"
The general contractor is almost always 100% liable for all outsourced work.
Kind Regards,
XDS
Source(s):
My Brain.
My uncle who is a GC.
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March 29, 2009 09:12 PM
Possibly, in California. If a subcontractor liens the property then the property (i.e., the owner) is liable, as the lien has priority. A homeowner is wise to have a list of all subs from the general and to insure they are paid in full by requiring a release of lien.
Source(s):
My husband is a licensed CA general contractor - I asked him.
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A lien release is helpful if you are willing to pay the outstanding balance of the General Contractor, without the G.C.'s markup. The conditional waiver and release would stipulate that the sole condition (making it _not_ an unconditional) is payment of the sum of $xxxx.
It can be executed in advance of final payment. It let's you know the exact amount. And, with that document plus an endorsed check, you are safe from a lien by that contractor.
Trying to get an unconditional release exchanged at the same time for a check is not easy, or impossible. Especially if the G.C. has made a habit of bouncing checks to the subs.