Santa Cruz, CA asked in Construction Law and Real Estate Law for California

Q: No contract with our GC ,fired him, never agreed to his percentage take. He wants 30K, if we don’t pay can he place Lien

It has been well over 20 days, no contract was signed and he made some egregious mistakes and never stuck to project due dates that cost us 40k. We paid him 45k before our barn was completed, even after he told us it would be around 25k. He never finished the barn (only trim and doors left) but also stopped progress on our main house due to personal issues so we fired him. Now 3 months later he finally returned our plans and permits , after asking for them for months. He now wants another 30K.

If we don’t pay can he place a construction lien? We lost our home to fire and are rebuilding. House is framed and roofed, rough plumbing. We still have a ways to go. We are Concerned about his right to place a hold or lien to prevent us from moving forward with the Santa Cruz county building dept. and complete our build. Thank you

1 Lawyer Answer
James L. Arrasmith
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Answered

A: In California, a contractor can file a mechanics lien for work done on a property, even if there was no formal contract. However, there are specific time frames and conditions that must be met. For residential projects, the contractor typically has 60 days from completion of the work to record a mechanics lien if a notice of completion or cessation has not been recorded. If either has been recorded, this period is shortened to 30 days.

Since there was no signed contract, the amount the contractor can claim might be disputed. It's crucial to gather all documentation related to payments and communications with the contractor, as this will be important in any legal dispute over the amount owed.

Given the complexity of your situation and the significant amount of money involved, it would be wise to consult with an attorney experienced in construction law. They can provide guidance on how to proceed, including how to contest the lien if it is improperly filed, and how to negotiate or litigate the amount claimed by the contractor. Additionally, they can advise on strategies to protect your property and rights during the rebuilding process.

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