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Can a general contractor file a mechanics lien if they use unlicensed subs and did not complete written contract?

Question Details:We hired a general contractor who didn't supply sworn statements from subs and then hired unlicensed subs who sub to unlicensed subs. The general contractor said they "got fooled" when the subs didn't do the work according to the written contract. When we discovered the roof didn't have the contracted 30 year warranty shingles and "tar paper" was substituted, we complained and refused to pay the full contact price...a lien was placed on my home. Also, we contracted for a "ridge vent" ventilation system that also was not installed. They said the existing fan was good enough.

Asked 2 years ago under Real Estate | 1307 Views | More Legal Topics

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B. B., Member, New Jersey Bar | FreeAdvice Contributing Attorney Answered 2 years ago

They can file the lien, but in this case, I think they can be persuaded to remove it, with a good stiff attorney's letter.  They didn't comply with the contract, so they can't enforce the full price.  In fact, it seems to me that you'd be justified in having the roof re-done and charging them for the work.  Their opinion on whether or not the existing fan was good enough is irrelevant;  if you were being charged for something that wasn't installed, they can't collect for that.

And, as the general contractor, it was their responsibility to ensure that the subcontractors were licensed.  If you can prove otherwise, it's very much in the general contractor's interest not to have the unlicensed work brought to the attention of the building inspector.  You have quite a bit of leverage here, and I'd recommend talking to a lawyer, to find out what all of your options look like.

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