What doI do if a homeowner ceases a building project and refuses to pay for labor?

Get Legal Help Today

 Secured with SHA-256 Encryption

What doI do if a homeowner ceases a building project and refuses to pay for labor?

I am an independent contractor in Nebraska. I was 90% complete in a $20,000 garage and concrete project when the homeowner decided that the 50% completed concrete work was not sufficient and I told him I would fix the problems and finish the work. He then decided that he did not want me to complete the concrete work. The garage is fully done according to contract with extra work that the homeowner added in to the project that was not included in the contract. All of the building permits have been signed and approved along with any other permits necessary to the project. All of the materials have been paid for in full by the homeowner but now the homeowner refuses to pay for the labor that was included on the contract. I have not paid my employees yet. What can I do?

Asked on August 25, 2011 Nebraska

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you are a licensed contractor in the state where you are doing the work of improvement for the property owner on the $20,000 garage and concrete project and have a written contract with the property owner signed and dated by him or her for this work of improvement, you can commence with the perfection of a mechanic's lien on the project assuming you have properly pre-liened the property where the project is located.

To protect yourself, you need to write the property owner a letter advising him or her that you are ready, able and willing to complete the project that the property owner is unwilling to let you proceed with the project's completion. Keep a copy of the letter sent to the owner for future reference.

If the property owner fails to pay you what is owed, you will most likely need to file suit to foreclose upon any perfected mechanic's lien, for breach of contract and common counts for services and materials provided.

You need to pay your employees as soon as possible for what they are owed.

You should consult with an attorney experienced in construction law regarding your situation.

Good luck.

 

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption