Contractor Wants Me To Sign 20-Day Notice to Lien

[PJSprog]

Pretty sure that in most states this is possible even without a signed agreement. If the document makes you uncomfortable, tell him so. If it's a deal breaker, then pick a different contractor.

Our guy is working on a handshake. He hasn't asked for any advances, and wouldn't take any even after we offered to front material costs.

 

[Garandman]

//As a contractor, there are a few things that I come across in potential clients that I consider red flags. One of them is when they start talking about the law, lawsuits and going to court. I've never been sued, hope it never happens, but I sure don't want to work for somebody that likes to inform me of their plans to do so. In my world, I do the work, the client pays me after it's done. //

Same in my business.

If we say, "We are going to need some credit references" and they say, "No problem," there's no problem. But if there is any kind of story about their credit: PROBLEM.

 

[patchnball]

Well fellows, welcome to the great state of Maryland where as a contractor I am required by law to have such a statement on the FIRST page of ALL my home improvement contracts and signed by the customer. Refer to MHIC requirements for Maryland Home Improvement Contractors.
Do I like it...NO.....have I lost jobs because of it.....YES......do ALL licensed contractors follow the law on this ....NO.

Just saying....check and see if it is a requirement for licensed contractors in your state/area.

 

[adventure bob]

Newsflash: Licensed contractors can have alien placed on your property for non-payment whether you sign the doc or not. The doc is just him making you aware that he can and will if you don't pay in 20 days.

 

[davesl708]

As stated above. The contractor can put a lien on the property for non-payment without your consent. You need to make sure the contract protects you from shoddy work. Does the contract allow you to retain say 10% till satisfactory work has been completed?

The contract should protect both of you not just the contractor.

 

[Snobdds]

Use escrow.com as a intermediary on this. The money is put into an escrow account and is only released once completed work is done to a satisfactory level.

My dad's a contractor and they use this on big jobs to protect all parties involved.

 

[kenmac]

In a nut shell,my contracts stated payment was due once all inspections had been completed ,and signed off on

 

[greenmojo]

Unless required by law, NEVER sign anything that places restrictions or penalties on yourself. Basically, don't contract yourself into a corner.

Getting burned, is a basic cost of doing business. We've had businesses over the years that defaulted on paying NET-60 terms for software, and we don't require pre-payment or signing penalty statements for our other customers. Just bad business.

If it were me, I'd move on to the next guy. Besides, he doesn't need anything other than his word to put a lien on your home anyway.

~Moses

 

[greenmojo]

As a contractor, there are a few things that I come across in potential clients that I consider red flags. One of them is when they start talking about the law, lawsuits and going to court. I've never been sued, hope it never happens, but I sure don't want to work for somebody that likes to inform me of their plans to do so. In my world, I do the work, the client pays me after it's done. If they are not happy, they don't pay. I've never had that happen.

I like that.

We had some family friends that every couple of weeks, would tell us a new story about how they were the victim of their landlord, or the contractor, etc... and how many times they've sued people. We were worried each time they came over, that their kids would fall and get hurt, or something.

I'm always wary of people like this regardless of which side of the table they are on.

~Moses

 

[orezok]

In CA, sub-contractors and suppliers must file a 20 day notice to preserve their lien rights. The California 20-Day Preliminary Notice preserves a lien claimant痴 rights on a construction project when the notice is served by the claimant on the property owner, the lender and the general contractor (if a subcontractor or supplier). The 20 day notice must state the value of the work. The owner does not have to sign it, and it is generally delivered by registered or certified mail.

Failure to send the 20 day notice greatly reduces a sub-contractors/suppliers rights. Technically, a contract directly with the property owner does not require a 20 day notice, but most contractors send one anyway.