Legal Question in Construction Law in California

Re: Received bill 3 years after completion

Written contracts have a four year statute of limitation. What papers were signed, etc when job done. Call to discuss. Need more info. 800-685-6950

Re: Received bill 3 years after completion

First check to be sure the contractor was properly licensed throughout the entire project. Unlicensed contractors cannot collect for money owed. As of 2001, owners can sue for money paid to an unlicensed contractor. If you owe the money, most likely you will have to pay, because there is a four year statute of limitations from the time of breach on a written contract. Your paper work is very important in this instance. Were there any final releases or waivers signed by the contractor agreeing that all amounts were paid? It is important to re-create your payment history, despite how difficult it may be. That way you can compare your information with the contractor's information before you spend money on an attorney. If you do seek advice of an attorney, you will be asked for an accounting anyway. You may have to request information from your bank. This may be the only way to prove you have paid. Even though the contractor delayed in asking for payment, unless you can prove that the delay in billing somehow damaged you (a defense known as "laches")and it would be unjust to let him collect now, you will most likely have to pay what is owed. If you determine that you do owe, you may be able to work out an agreement with your contractor for a reduced amount or a payment plan that you can live with, if needed. Feel free to call if you have questions: 619-544-0086; www.construction-laws.com

Re: Received bill 3 years after completion

Very late billing by contractors happens more often than you'd think, but it's usually for change orders. I find it hard to believe that everyone would miss a five figure gap in the original contract price. Assuming that this is a billing for the original contract amount, I'd pull out your payment records and look to see whether you are actually short on paying the contract price. If so, I'd start negotiating a pay off and specifically ask for a waiver on interest since the contractor neglected to get statements to you in a timely fashion. If in fact you received the project according to plans, then you've had some free financing the past three years. Most, if not all, judges, while frowning on the inability of the contractor to do his paperwork, will agree that the contractor must be paid for work for which you contracted and received. You don't want to also get stuck for any contractual interest and, possibly, attorney's fees if the contract provides for that in the event of a lawsuit.

As mentioned by other counsel, written contracts have a four year statute of limitations, while oral contracts have a two year statute. If this is subject to the four year limit, you will want to think seriously about taking care of this short of litigation assuming, again, that the work was performed and you didn't pay the full contract price.