fired a subcontractor, worried about him filing mechanic's lien

15 years ago

long story short....

i am GC'ing my new home and hired a guy to do the final grade and excavate and backfill our semi-inground pool. when i met the contractor, my husband and i explained we needed the pool dug out 36", as we had a variance for the pool and can only have it OUT of the ground by 18" or less. the contractor wrote up a contract and stated the cost would be $2200 for the work. his estimate has him doing the grading and the pool in 3 stages as outlined by him (1, 2, 3).

he showed up the first (and only) day and excavated the pool and did the "final grade". he complained left and right about the pool excavation, citing that he has never had to dig out a semi-inground pool so deep and that he only intended to dig it out 9". then he said 18". he said i could grade up to the pools edge and the inspector wouldn't have a problem with it. i kindly reminded him that i had to get a variance for the pool and that it could not be more than 18" out of the ground- as we had discussed when he wrote up his proposal and estimate. he said he only intended to excavate 18" and that it would be "a few more dollars" to excavate it the full 36". i told him that if i had to pay more, then i would've hired another contractor to do the work. he didn't even have a level to see if the pool excavation is level! he stated he doesn't know how to use a laser level! he continued to finish out the day- (he worked about 6 hrs with another guy), at which point he presented me with a bill for $3200! i told him no way, he demanded i pay him and i gave him $900. i felt this was fair- it was more than 1/3 of the originall $2200. he complained and said he wanted another $1000. he said he'd be back in 2 days for the rest of the money. he showed up 3 days later and demanded i pay him $1200. i told him he was not going to finish the job- as it was awful. he threatened me by saying he would assess me 15% everyday i did not pay the bill. 2 days after that, i got a bill/letter in the mail from him demanding $1200 and that i would be responsible for his attorney fees and "not to call him to complete the job".

by the way, he did the "final grade"- a horrific job which has led to my basement being flooded due to his incompetent grading and backpitching the grade toward the house. the grade on my property is also a foot higher than my neighbor's- another huge problem. tge pool is not level and i had to have a window well built around a window to divert the constant flow of water into the basement. i have had to hire another contractor to do the final grade and to level the pool excavation.

i think the $900 should be payment in full. i should go after him for the extra money i have had to layout hiring another grader, putting a window well in and flooding my basement.

i'm just afraid he may put a mechanic's lien on the house.

any thoughts?????

thanks!

Featured Answer

bevangel_i_h8_h0uzz

15 years ago

Did you have any sort of written agreement with this character? You didn't ask about this but...I don't know the exact laws in your state regarding late payment penalties but in Texas, where there is no agreement regarding interest on unpaid bills, the maximum rate that can be charged is 6% per year and that can only begin to be applied 30 days after the debt becomes due. So, even if you did actually owe him the amount he is claiming (which I doubt), absent a written agreement to a higher interest rate, I'd suspect that if he tries to assess a 15% late payment penalty for every day that an alleged bill goes unpaid, he would be in violation of your state's usury laws.

Next, each state has very specific laws regarding mechanic's liens and the time limits in which they MUST be filed. You should probably do a little research or talk to a lawyer in your state regarding mechanic's lien laws. Once the time limit for filing a lien (which can be as short as 30 days) has passed, check your county records to see if a lien has been filed against your property. If not, you can rest easy about that. If he has filed a lien, then you'll need the attorney to help you deal with him.

Assuming everything you've said is true, my suspicion is that this guy won't really file a lien. He sounds like the kind of shoddy workman who deliberately low-balls bids and then, once he has the job, attempts to hijack more money from his customers. Chances are, if you start checking, you'll find he has a long history of doing the same thing to other customers. The last thing he wants is an actual court battle where you could allege "fraud in the inducement" regarding the contract and start delving into his prior business practices to show that he has made a pattern and practice of doing the same sorts of things to others.

Also, you'll want to keep watch on your credit reports so that if he files anything with a credit bureau, you can dispute it so it doesn't negatively affect your credit score.

And BTW, once the deadline for him filing a lien against your property has passed, do report him to the BBB. Unless you complain so that other homebuilders have at least some chance of finding out about what he did to you, he'll be free to keep on screwing other people around.

Good luck.

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Comments (8)

mmike032
15 years ago
sounds like you hired a shotty contractor because he was the lowest bidder. I have no sympathy for HOs that just hire someone b/c their price was lower than anyone elses.

If you signed a contract w/ him then yes he can file a lien. In the contract should have been cease and disist order which would have stated what happens if there is a problem.

moral of the story:
reputable contractors have to charge enough to stay in business. This means they have to cover their overhead to make a profit. They have to pay for insurance, licenses, permits, etc...

sure you can find Joe Blow construction that will do it for half the price but the result is what happened to you.
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dixiedoodle
15 years ago
So, welcome to the forum mmike032! You picked a wonderful way to introduce yourself to the community...
cathicool
Original Author
15 years ago
so even though i paid the guy $900, he can still file the lien for the rest of the money he has decided i owe him?
his follow-up letter stated he would not be completing the job.

also, the $900 i paid him was in cash...i know, i know....how can i prove i actually gave him that money? the guy refused to leave til i gave him some money and i signed his new estimate...(which by the way is just a bunch of numbers written on his estimate paper). does this "count" for anything?

thanks....
frog_hopper
15 years ago
Did you pay anyone else to complete the job, and did the combined totals exceed the original estimate? If so, you could write the guy a demand letter demanding that he pay you the difference. Nothing fancy, just a very simple letter stating that he failed to meet his contractual obligations, which caused you to expend additional funds. Include a demand that he make you whole, and a dollar figure.

Or you could hire a lawyer to write it for you.

If you send hime the letter, my guess is you will never hear from him again.

On the other hand, if you did not hire anybody else or do the work yourselves, you may have a problem
cathicool
Original Author
15 years ago
we have hired another contractor to repair the grade and backfill the pool after it is installed (tomorrow). in the mean time, i've had water-and alot of it- gettimg into the basement because the grade on one side of the house in particular is like 8" above the window. i tried to dig it out, but it is really was too much for me to do without a machine/bobcat. so i hired a mason to put a window well--cost $1200. plus the new grading contractor will probably charge me $2-$3000 to "finish" the job.

honestly, i don't want to pay the guy anymore money and i want to be "in the clear" from being further obligated to him. i really don't expect my $900 back (although that would be great). i just don't want the guy detaining me from getting a CO on the house- we are like 2 weeks away at this point.

thanks again!
frog_hopper
15 years ago
I don't see how he could impact the CO. even if he filed a lien. The CO means the house is finished, meets code, and is fit to live in. It shouldn't have anything to do with finances or bills.
cathicool
Original Author
15 years ago
you are right i don't think the CO is impacted, but i won't be able to get clear title if there is a lien on the property and then i won't be able to get a mortgage without the clear title.

it seems the law in NY is that a mechanic's lien can be liled up to a year later and it can be renewed for another year after that providing some action toward a legal proceeding has begun. i understand i could bond the money if a lien is filed in order to get the mortgage---depending on the amount he files the lien for.

fired a subcontractor, worried about him filing mechanic's lien

bevangel_i_h8_h0uzz

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mmike032

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fired a subcontractor, worried about him filing mechanic's lien

bevangel_i_h8_h0uzz

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mmike032

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