Legal Question in Construction Law in Colorado

Bankcrupt Subcontractor did not pay supplier

I am a contractor for a remodeling project and my sub just filed bankruptcy after I paid him the full contract price. He only sent partial payment to the supplier. They have sent the homeowner a intent to file lien letter. Are we still liable for the money still owed to the supplier? We had a joint check agreement with the supplier but the sub gave me the incorrect amount for the joint check. Should I be working with the supplier to get the amount reduced or let them file lien since it is a remodel and the homeowner does not intend to sell any time soon. Tks for your help.


Asked on 2/27/09, 10:42 am

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: Bankrupt Subcontractor did not pay supplier

Sorry about the problems. This is a complex subject and your rights and any strategies depend on the joint check agreement, the date and nature of payment to the subcontractor, the executory contract and any possible preference claims and strategies.

Due to the bankruptcy you must be very careful and proceed in a timely manner. Moreover, the supplier, aka materialman, may have some issues in attempting to file a lien. You should contact a construction attorney to advise you on issues.

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Answered on 2/27/09, 2:59 pm


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