Be aware when hiring
contractors
By Contractors Ready Mix, Lincoln,
Illinois |
Send a link to a friend
[May 04, 2016]
If
you are an owner having construction done on your property, you need
to know about Liens, Lien Waivers, and Contractor’s Affidavits.
|
|
 Illinois Law provides that an owner is responsible to ensure that
any work performed on his property is fully paid for, and if it is
not, the unpaid party may file a “mechanic’s lien” against the
property. A mechanic’s lien entitles the unpaid party to force the
sale of the property, with the proceeds being applied to the unpaid
bill.
Owners
should note that this is true of sub-contractors as well as general
contractors!
Subcontractors are those individuals or companies your general
contractor has hired to provide material or labor to help him
complete your job. For example, if you hire a contractor to build a
garage on your property and the contractor does not pay the lumber
yard or the concrete company for all of the building materials used
on your garage, the lumber yard or concrete company may file a
mechanic’s lien against your property.
This is
true even if you have paid your general contractor the full amount
of the price you agreed on!
You are still responsible to see that your contractor pays all
sub-contractors. In other words, if you pay your general contractor
in full, and he does not pay his sub-contracted material suppliers,
you may be required to pay for the building materials--twice!
You
can easily avoid any worries about this situation and protect
yourself from unpaid sub-contractors
The law provides that you can require your contractor to furnish you
with a sworn statement known as a “Contractor’s Affidavit.” A
Contactors Affidavit is a short document which lists the names and
addresses of all parties who supplied labor or materials on your
job, and the amounts due to each.
[to top of second column] |
Once you have this information you should then require a “waiver of
lien” from your contractor and each sub-contractor in exchange for
making payment. By signing a “waiver of lien” your contractor, sub-contractor(s),
and material suppliers acknowledge under penalty of fraud that they
have been paid—either by you or your contractor.
Always
require Contractor’s Affidavits and Lien Waivers
Always require Contractor’s Affidavits and Lien Waivers from all
general contractors, and material and labor providers who do work on
your property. You can usually obtain these waivers at no charge
from your contractor and or sub-contractor(s), as well as your bank
and your attorney. Most banks require them before they will release
loan proceeds to fund a project, and virtually all commercial
projects in which we are involved require them.
If you have any questions we encourage you to contact your attorney
before beginning a project and get the facts. Good advice when you
begin your project combined with a little paperwork as the job
proceeds can save a lot of grief after it is finished.
|
