Builder won't pay - what to do?

ckingclean

Cleaning with Aloha
We did some work for a custom home builder 9 months ago. They haven't payed the bill yet, after being reminded multiple times. The builder says that they can't pay the subs yet because the home owner will not release the last payment installment for the house. They say that the lawyers are working it out.

I'm ready to take action. What would be the next step? Could I put a lean on the house? Has anyone dealt with a similar situation?
 
Ask the homeowner. You might get a completely different story.
 
What are mechanic's lien laws like in Hawaii?
 
In UT we have to file a lien before starting work on the house and release it upon satisfactory payment.
 
Lien laws vary a bunch. Here if the home owner retains title to the lot you have 59 days after the date the first work was performed or materials were delivered to a job. If the builder owned the lot you have 59 days from when you last performed labor or delivered materials on the job. After that a lien will be invalid. Liens don't really do much but scare the uninformed. Mortgage companies don't like them but unless you let them know it's there after a closing they usually never find out. Contrary to popular belief you can sell a home with a lien by insuring around it through a title company if you know how. Doesn't remove it but allows transfer while it's worked out. Like IRS tax liens.

You can still sue them without a lawyer in small claims if it's under the legal limit for your courts. Some courts require a lawyer if ether party is a corporation. Which most builders are. If your builder doesn't have sufficient funds to pay your bill before he collects from his customer you may be in trouble. He may just be stalling you. If it's a cost plus building contract your bill was probably paid to the builder months ago. He just didn't pay you.

It's part of the learning process. Your next step after suing the builder if you are working for builders is to find out what the lien laws are and file a lien just prior to the last date. Don't let anyone stretch you out. If you are getting paid it's business. If not it's charity. I like to choose my charities.
 
Grant gave the BEST answer. Ask the owner before you do anything. May loose you a builder but he may be one builder you can't afford to keep.
 
We did some work for a custom home builder 9 months ago. They haven't payed the bill yet, after being reminded multiple times. The builder says that they can't pay the subs yet because the home owner will not release the last payment installment for the house. They say that the lawyers are working it out.

I'm ready to take action. What would be the next step? Could I put a lean on the house? Has anyone dealt with a similar situation?


what is in your contract about payment?
 
Yeah, I've thought about asking the homeowner. I guess I could just go knock on the door and get their side of the story.

I don't know much about lien laws here. I need to do some research.

The other problem is that I don't want to piss the builder off because he also manages our #1 maintenance account. On the other hand it is not right for us to not get paid for work performed.

I have a signed contract that reads "Payment due Net 15 upon completion of work."
 
You're contract was with the builder and had to clause of receiving payment from him in 15days,not when the homeowner paid correct?
He needs to pay you regardless if the HO has paid him or not if that's how the contract reads.

Yes that is correct. I'm just in the tough spot of not wanting to take him to court and burn the bridge, but I still want to get paid!
 
We did some work for a custom home builder 9 months ago. They haven't payed the bill yet, after being reminded multiple times. The builder says that they can't pay the subs yet because the home owner will not release the last payment installment for the house. They say that the lawyers are working it out.

I'm ready to take action. What would be the next step? Could I put a lean on the house? Has anyone dealt with a similar situation?

Chris, i would imagine we are not talking a great deal of money.

You will get your money eventually. Call me if you like I have a couple things that work.

The contruction company is bonded by law in your state. you need no leans or lawyers. get the licensed number and find the bond company. I have a couple others methods. they are detailed and will get your money without to much hassels.

Also, have you actually put them on notice? This is all it may take.
 
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