Tuesday, November 24, 2009

Lien On Me

Those of you who've been following this blog for a while probably discerned that I wasn't all that happy with our contractor during the construction process of our new studio space. But you know, the project gets finished--or almost finished anyway--you're happy with the new space and you figure you can all part friends.

Well, recently we had a lien put on our property from a company that had supplied building materials to our contractor. Ouch! I mean, come on! I thought it was all over and done with.

I expect that most of you are more knowledgeable than I was about this sort of thing...but there could be some out there that this advice will help.

In our contract it was very clearly spelled out at what stages we would be billed, and for how much. The contract even said that we could request Lien Releases during the process. Stupidly, I didn't know what that meant. I also made the mistake of thinking that since we had worked with our contractor on multiple projects, and we refer clients to him, he would treat us ethically and professionally. Well, the joke is on me, but I don't think it's all that funny!

PLEASE review your construction contract carefully on any renovation project. Be sure it states that you can request Partial Lien Releases (and ultimately Final Lien Releases) from all sub-contractors and suppliers. Watch what materials your contractor is bringing in, and what subs so that you know who and what to request these Lien Releases for. And it's not a bad idea to double-check with the subs to make sure they actually provided the Releases. You should not make the next payment to the contractor until you receive these Releases. They show you that he is actually paying for what he's providing to you. If you have questions or don't understand the language of the contract, ask an attorney to review it with you, or a neighbor or friend who has had experience with that sort of contract.

I hope you won't make the same mistakes we did, and if you know someone considering a remodel, I hope you'll send this advice along. Most contractors are going to do the right things to protect their reputations and licenses, of course. But a little more education on the front-end of the process can go a long way.

Hey, for those who knew all this, where were you when I needed you 7 months ago? Oh well...

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