Blog #3: How to avoid being stuck with the bill when a contractor or subcontractor fails
Most clients believe that once a building project contract is signed, their responsibilities are limited to monthly progress payments. Some have been shocked to learn the hard way that building owners can be held responsible for contractor and subcontractor mistakes that occur on-site.
Expenses can be incurred if:
• The contractor does not pay subcontractors and the subcontractor files a lien against your property
• The subcontractor does not pay suppliers and those suppliers file a lien against your property
• The subcontractor is unable to complete the project and delays occur in finding a new subcontractor
• The subcontractor is no longer in business to honor warranties
• The subcontractor practices unsafe work practices and a major accident occurs. Your property is now associated with that accident, and you may be found to be financially responsible
The best defense for an owner is awareness. Know who is on your project. Make sure you are working with a responsible company.
As always, if you have questions or would like to discuss this topic, contact me personally at 505-934-1577, email@example.com. Or, submit your opinion below.