Legal Question in Construction Law in Michigan
Unlicensed Builders and Licensed Subcontractors
I hired (labor only) a building contractor for an addition of a new dormer and a re-roofing project with a residential builder, who in turn hired a licensed subcontractor. The subcontractor performed about 3/4 of the work the builder hired him for. At that time, I learned that my primary builder is in fact unlicensed, and the dormer needs to to be removed! The subcontractor now wants me to pay him for the labor he performed under the unlicensed builder. No other documentation other than the original contract with the primary builder was ever presented to me. (which I consider to be voided) I have been advised by a local attorney that under Michigan Law, I am under no obligation to pay the unlicensed builder. However, the subcontractor wants to put a construction lien on my home for what he would have been paid by the primary builder. Am I responsible to pay a licensed subcontractor that was hired under an unlicensed building contractor? I certainly hope that you choose to answer my question. As I just don't know what to do.
Thanks so much!
1 Answer from Attorneys
Re: Unlicensed Builders and Licensed Subcontractors
There is a process in which a subcontractor can file a claim of lien, and then a lawsuit, to recover the value of his labor, materials, and supplies in making improvements as you describe. You might be liable to the sub for the work he did. Your best defense might be that the work was defective (you do not say why the dormer has to be removed). Other than some mistake(s) made by the sub, I would think a competent lawyer could make the sub's lien stick.
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