Q: How do I protect myself legally as a GC from seeming like I abandoned the project?
As a General Contractor in North Highlands, California, I'm dealing with a client who demands work beyond our contract's scope, with expectations exceeding standard industry practices. Despite nearing completion, they refuse to sign change orders for the additional work. Concurrently, there is an outstanding payment due, leading me to halt work until it's settled, yet the client neither wants to pay nor halt the project. Amidst these circumstances, my priority is to protect myself legally from seeming like I've abandoned the project while securing payment for the completed work. Considering a lien as a solution, I would appreciate guidance on its effectiveness in this situation.
A: Obviously involved and complicated issues will require answers that are more comprehensive than what can be shared here. Pay the money for a consultation with an experienced attorney in your area. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]
A: A mechanic's lien is very powerful for a contractor in your situation. It will force the owner to either pay you what's currently owed, or you can enforce your lien against their property in court, and recover the court costs to do so and interest on the amount you are owed. I suggest contacting a construction attorney in Northern CA for a consultation, but you can record the lien yourself first to protect yourself while the attorneys negotiate a resolution for you and the owner.
A:
You should document all communications with the client regarding the additional work requests and payment issues. Make sure to send written notices and requests for change orders, clearly stating the scope of work and any potential delays caused by the client's actions. If the client continues to refuse to sign change orders or make payment, you may consider filing a mechanics lien to protect your rights to payment for the work completed.
James L. Arrasmith
Founder and Chief Legal Counsel of The Law Offices of James L. Arrasmith
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