Q: My builder is not providing accurate accounting for the last draw of my construction loan. He refuses to correct it.
My husband and I have been living in the house since may. The builder states all the invoices are in but at the same time adds a quote in our change order that states he has a right to add invoices that may come in the future. It’s clear he’s overrun his costs and is trying to get us to pay for them.
A: It is not clear if construction is complete, although I am making that assumption because you are living in the house. If construction is complete, I would presume you have been tendered a final bill, which you have been able to review and either approve by issuing payment or by asking questions as to the billing before any payment is issued. The documents would have to be reviewed to provide a definitive answer and I would recommend you contact an attorney whose practice is concentrated in construction law.
A: You need request a sworn contractor's statement from your contractor in writing. You are entitled to the sworn statement under Section 5 of the mechanics lien act which provides that an owner is not required to pay a contractor anything until he receives the sworn statement, but only if the contractor is asked for one. That should provide you an accounting and possibly protect you from subcontractor liens.
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