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A subcontractor can turn to Construction or mechanics lien law in order to secure payment. By being lien law compliant, meeting specific requirements such as preliminary notices and within time restrictions, a subcontractor can withhold payments to the primary contractor or lien the property.
Lien laws are state specific and you should check your state's statutes for the requirements and restrictions.
Property owners can protect themselves from these liens by requesting waivers or releases from all subcontracts and the primary contractor for each payment as well as a Contractor's Affidavit at the end of the job in exchange for the final payment.
What else can I help you with?
A contractor and his subcontractor are working the same job and the sub damages the contractors equipment whos insurance pays?
The contractor should make a claim upon the sub-contractors insurance and/or bond. If the sub-contractor defrauded the contractor on having insurance and/or bonding in place then he should report the contractor to the State licensing board, file claim on their insurance, and civil lawsuit (if the insurance company does not directly file or pay).
What is sub-tier contractor?
A General Contractor hires Sub Contractors to do different portions of the toal project. A Sub Contractor may then hire a Sub Tier Subcontractor to do a portion of their work.
What is tier contractor?
A General Contractor hires Sub Contractors to do different portions of the toal project. A Sub Contractor may then hire a Sub Tier Subcontractor to do a portion of their work.
What is the difference between a prime contractor and a subcontractor?
The prime contractor is contracted by the end customer. Sub-contractors are contracted by the prime contractor or other sub-contractors.
How does a sub contractor in Nevada get paid by general contractor?
If the general contractor refuses to pay, you must sue the contractor for payment. You may also sue his bonding company, if he has one. If your dispute exceeds small claims, see a real estate attorney right away.
Who is responsible for pricing extras on a home building the builder or the sub contractor?
The contractor will get a bid from the sub contractor and add his percentage, then present the change order to the customer. This depends on the change. Some changes are items which are pre-set arrangements between the contractor and sub that can be priced without a bid from the sub. Flooring for example.
Is a person a subcontractor if the general contractor makes the price?
Anyone who does work for a general contractor and is not a direct employee of that contractor is a sub-contractor. Regardless of who sets the price. The subcontractors work within the contract set between the general contractor and homeowner. Hence sub-contractor.
How should a sub contractor pay taxes on a part time employee?
Hours worked are irrelevant. Report same as a full time.
What is the maximum allowable percentage of total pay to sub-contractors before being considered a general contractor by liabiltiy insurance providers?
Most of the time it is 25% or more then you become a general contractor.
Can a subcontractor put a lien on the clients home?
Yes. You should have requested a release signed by each sub before you paid the builder. It's a system that sucks, but as a sub it's the only thing we can do to get paid.
Can a contractor hire a sub-contractor without the permission of the owner hiring the contractor?
That will depend on the contract. Some contracts allow it, others require notification and approval of sub-contractors.
What is the relationship between a subcontractor and main contractor in relation to payments and other matters?
The customer pays the contractor, and the contractor pays the sub-contractor. The sub-contractor does the work but the contractor remains responsible for ensuring that the work is done prompptly and correctly. The contractor ensures that all legal requirements for the work are met, and that the sub-contractor hasan appropriate amount of liability insurance, in the event that something goes wrong and horrible law suits result.
