Q: Is a new building owner required to pay for a change order on work contracted out by previous owners/management?
I recently purchased a property in the state of California. Right before contract closed, I was disclosed that a purchase order for electrical work would occur on the property. This work was contracted out and paid in full by the previous management company/previous owners prior to closing. After the property closed, the work was completed but the general contractor is now saying a change order came up and that I, the new property owner, have to pay it. I have no signed contract with this contractor and have no agreement for a change order. I did previously, over text, agree to pay a much smaller extra sum, however the contractor just invoiced an amount substantially larger saying that additional work was needed to be completed. Am I obligated to pay for this change order and can the contractor put a mechanic's lien on the property if this was contracted out by the previous owners/managements company?
A:
In California, a change order is generally an amendment to a construction contract, and the party responsible for payment is typically the party to the original contract. If you did not sign the original contract or the change order, you are generally not obligated to pay for it.
Text messages, while informal, can be seen as evidence of an agreement; however, if the amount invoiced is substantially different from what was agreed upon, it may not be binding. It's essential to review the exact language and context of the text exchange. If the contractor performs work without a valid change order or agreement, they may have difficulty justifying the additional charges.
However, California allows for the filing of mechanic's liens by contractors for unpaid work, which could potentially encumber your property. Before any potential lien is filed, it's crucial to communicate with the contractor, clarify any misunderstandings, and potentially seek legal counsel if necessary. Handling this situation promptly and understanding your rights and obligations will be essential to resolving the matter.
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