Legal Question in Real Estate Law in California
finished construction, not finished
My contractor just told me he placed finished construction papers with the city and that we need to pay the final bill within 30 days or he will place a lean on the property. The work is not finished and some things need to be re-done. He states it is the law that has him file the papers after the final inspection is done. He states his warranty covers the rest of the work and anything that needs to be re-done.
1 Answer from Attorneys
Re: finished construction, not finished
A contractor has 90 days from when either the work
is finished or he files a Notice of Completion within
which to file a Mechanics Lien. The Mechanics Lien
secures the contractor's payment with the property
upon which he was working. If your contractor has
filed a Notice of Completion (with the County, not
the City), then his 90 days have started to run.
However, that does not mean that you should pay him
for work done improperly or for work not yet done.
Don't pay him until it's complete and correct. If
there is an amount you agree is owed and you need
to withhold only part of the payment to secure
completion or correction of the work, you should pay
him what you agree you owe. Don't be intimindated
by the possibility that the contractor will file a
Mechanics Lien. If you don't get your dispute with
the contractor resolved before the end of his 90
days and he does file a lien, he still has another 90
days before he has to file a lawsuit on that Lien.
If you get your dispute resolved within that 90 days,
the contractor can release the Lien then. If your
dispute still isn't resolved after another 90 days,
then the contractor can file his lawsuit, but that
doesn't mean he'll win; if you're right about the
quality of the work, you'll win.