Legal Question in Business Law in Iowa

Building Own House/payments to sub-contractors

When paying a subcontractor moneys for materials what binds him to spend the money when and where he should?

I have heard horror stories where payment is made, materials not bought, or ordered and not paid for. And then the supplier coming back on the owner for the money. ie, paying twice when the sub contractor skips out or leaves a balance somewhere.

Thank You


Asked on 1/26/00, 12:56 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Building Own House/payments to sub-contractors

Make sure you get lien waivers for all subs and suppliers. I always like to get them to execute a contractor's affidavit, in which the list all subs and suppliers.

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Answered on 1/27/00, 8:46 am


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