Q: We failed final inspection, but our contractor wants final payment and is threatening a lien.
For our 300sqft addition, our contractor graded the existing property 3 feet below the existing soil level, exposing the foundation of the existing perimeter structures. We failed final inspection on 9 items (8 were uncompleted scope items, and one was that this exposed existing structure foundation is now a safety hazard and needs to be addressed). The contractor emailed us immediately after failing and said since its going to take us (not him) a long time to fix the existing structure problem, and the scope of work is done (it's not - 8 other items failed final inspection), he wants the remainder of the project money. When we told him the work wasn't done, and the existing structure foundation exposure was due to his over-excavation so we expected him to be responsible for it, he threatened to put a lien on our house. We have been advised to file a claim for his bond, as well as report him to the state licensing board, but should we pay, to avoid the lien, even though we didn't pass?
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- California
- (916) 704-3009
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- Answered
A:
Under California law, a contractor is generally not entitled to final payment until the contracted work is completed to the agreed-upon standards and has passed all required inspections. Since your project failed final inspection on multiple items, including the safety hazard caused by over-excavation, you have a strong position to withhold the final payment until these issues are resolved.
You are correct to consider filing a claim against the contractor's bond and reporting the contractor to the state licensing board. These steps can help protect your interests and address the contractor's failure to complete the work satisfactorily. Filing a bond claim may provide you with financial compensation for the incomplete or substandard work.
Paying the contractor to avoid a lien is not advisable if the work is incomplete and substandard. Instead, document all communications and issues with the project, and seek legal advice to understand your rights and options fully. An attorney can help you navigate the process, including disputing any unjustified lien and ensuring the contractor fulfills their obligations. Taking these steps can protect your property and ensure the work is completed to the required standards.
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