Legal Question in Construction Law in California

Invoice discrepancies with Contractor

I am an owner builder on a total remodel of my home. I hired a licensed general contractor based on time and materials and did not sign a contract. I verbally agreed to wage amounts and all materials incurred. My question is, on several invoices, the contractor and his partner are including ridiculous amounts of hours spent working on my job site. I am also working on my home and I am disputing the amount of time they are claiming on some of the invoices. Can they file a mechanics lien on my property without a written contract? According to my estimates, what they have billed and what we have paid is even, but they are insisting they worked all the hours included on the invoices. I am physically on the jobsite every day and never witnessed either one there or working for more than two hours a day if that. Their invoices for the past two months state they worked 17 to 34 hours a week which is an insult to my intelligence. I have only been on the jobsite for the past two months because the budget got out of hand and I was forced to take a leave of abscence to complete the project. After reviewing all the invoices it appears they have been padding all the invoices from the beginning. I am only going back to when I started full time.


Asked on 12/05/06, 3:08 am

1 Answer from Attorneys
Gary Redenbacher Redenbacher & Brown, LLP

Re: Invoice discrepancies with Contractor

The Contractor's State License Board maintains that time and material contracts for home improvement are illegal. I don't necessarily agree, but your situation points out why T&M contracts are a bad idea unless you know the contractor and his ethics intimately.

That said, it's possible that these guys are putting in hours off the jobsite. Most of the hours a general contractor puts in are in scheduling, material purchasing, coordinating and generally working out problems. Still, it wouldn't surprise me if these guys are padding the bill.

Now, to answer your question. Yes, they can record a mechanics lien against your property without a written contract. The CSLB may be interested in their business practices, though. Working without a written contract on a home improvement job is cause for disciplinary action against their license. Will this help you complete the project? Probably not. If you really think that these guys are scamming you, the only way out is to fire them and get a bid from somebody to finish up. This means that the job will lie fallow while you search for somebody to help. If you live in Monterey, Santa Cruz or Santa Clara County, I could give you the name of an outstanding construction manager who may be willing to step in. Recognize, however, that it's always tough to come in in the middle of a job.

Read more
Answered on 12/05/06, 11:51 am


Related Questions & Answers

More Construction Law questions and answers in California