Contractor Wants Me To Sign 20-Day Notice to Lien

[wjmst]

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.

Would this alien be from Mexico or outer space? If they are from Mexico, put them to work! If they are from outer space, then charge admission! Haha. Don't you just hate it when people do this to your responses!

 

[Industrial Toys]

In the 80s I worked for an Engineering company. The boss sued everyone who looked at him sideways for any infraction or event that might have cost him money. He didn't even employ lawyers as he had the whole system down pat.

 

[adventure bob]

I now have at least 3 aliens placed on my property. They're not too bad except the blue one...he eats the shrubbery. Its part of an Obama relocation program.
**** you autocorrect...

 

[Industrial Toys]

I'm not fussy about the ones with the "probes".

 

[/pine]

I've had numerous contractors do work on my property with a handshake and I've paid all my bills.

There is a contractor that is bidding to do some work (under $10k) and he wants me to sign a 20-day notice with a notice to lien. This is signed BEFORE any work is done and it's an affidavit that if I don't pay, he then can put a lien on my property.

I've never had to sign such a document before and it bothers me for some reason.

This is a fairly common business practice...in the same respect the contracting party can also request/demand lien wavers from all parties that have been paid (both labor and material suppliers)...

FWIW...in many states if a contractor or sub contractor has material delivered to a job site...the owner of said site is ultimately responsible for the cost of the materials delivered...not the contractor that ordered them...

 

[9973720wb19]

i don't think I'd sign it. by not signing, it does not take away any of this rights to file a lien. the doc he wants just makes it easy for him to file. maybe he can call a few references from you

 

[sixdogs]

There are lots of good people looking for work and I would only sign it if I had an attorney look at it and that brings the cost up.

 

[Steppenwolfe]

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 claimantç—´ 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.

Orezok, and many of the other posts are correct, GC's can lien for non payment with little reason. California is very upfront on liens to protect all parties involved. North Carolina now has it as part of pulling a building permit, no lien paperwork filed, no permit is issued. This is to protect the contractor, subcontractors, material suppliers, and even the Owner of the project. If you aren't comfortable, hire another contractor. Also, slash pine brings up a great point, any materials supplied to a job site are still owned by the supplier until paid for. MAKE SURE, before you pay your contractor in full, he provides proof of payment for all supplies and subcontractors.

 

[Pettrix]

In this state (Arizona) the 20-day notice must be filed prior to work or the contractor loses his/her rights to lien a property. Each state is different but in Arizona it is required.

It's just all the other contractors I used didn't do it, he's the first. Also, he is bidding time & materials and his estimate in time & materials is high so I don't want to box myself in.

 

[Tractor Seabee]

Tell him you will sign the lien notice if he will provide you with a 100% Payment and Performance Bond. That is what government contracts require contractors to do. That provides the owner a means of redress if the contractor does not pay his bills on time and does not complete the project on time and per Plans and Specifications. If a contractor does not pay his employees, subs, or suppliers; they can file a Mechanics Lien lean your property and force you to pay your contractors obligations for labor and materials provided for your contract. The Performance Bond is then backed up with a contract clause providing liquidated damages if the contract is not completed per contracted completion date.

Contracts are intended to protect both parties. All of the above rhetoric is not practical on small projects as you would never get a contractor to do your work. Everything comes down to risk assessment.

Ron