More so than most industries, construction may be reeling while using a tough economy in the last couple of years. While it creates an outstanding building atmosphere when it comes to price, additionally, it creates some unique challenges for your basement finishing project.
One potential issue that no person thinks about will be the challenge with contractors who can’t pay their bills. You might ask: “Why should this matter in my opinion? I’ll pay my contractor 100% of the I owe in the event the job is fully gone.”
Listen carefully. Even though you paid the check on your basement finishing project, it is possible to always be subject to a mechanic and material liens!
If your basement finishing contractor utilizes subcontractors (the valuable thing – to learn more on this see our previous article titled “Basement Finishing – Will I Recoup My Costs?”) those subcontractors have rights to the work they’ve done in your house until to remain paid.
Further, should your basement contractor provides materials for that project (which a positive thing – for more information with this see “Basement Finishing – Benefits of Membership!”), the suppliers have rights to the people materials in your house until they are paid.
If your contractor is under honest, you aren’t can’t pay for the subcontractors and suppliers who helped on the project, then this basement project itself may be the only recourse those subcontractors and suppliers have for your money these are owed!
An unpaid subcontractor or supplier can file a lien with the municipality being placed against your property, pending final payment. This puts you inside a sticky situation! You’ve already paid for the project, though the funds didn’t live to the rightful party.
Removing these liens isn’t easy and will likely involve attorneys, which can be going to …Read more