General

Nonpayment of subcontractors can lead to construction liens

Any time a business starts, grows or moves there can be a need for some significant construction to be completed. Oftentimes, business owners hire a contractor to manage the jobs and hire subcontractors to complete the work so that they can remain focused on operating their business.

Business owners may believe or want to believe that they are then completely removed from the ins and outs of the construction work and agreements between contractors and subcontractors, but ultimately, business owners can pay the price for a construction dispute.

For instance, when subcontractors are not paid, they can file a construction lien against whatever project they worked on. The property owner may then be required to sell off parts of the property until the workers are paid. This can happen even when a property owner paid a contractor who failed to pay the subcontractors.

This is exactly the situation facing two Chick-fil-A locations in another state. According to reports, carpenters who built the frame of both buildings were not paid appropriately for the work they completed. Even though Chick-fil-A stated that they made all the necessary payments, the carpenters filed a construction lien against the two properties.

These types of construction disputes can get very complicated and contentious. In this case, a spokesperson for the fast food company maintains that the contractor and carpenters are working the situation out themselves.

However, there is not always an agreement in place that holds the contractor and not the property owner responsible for paying bills. Without this type of agreement, Florida laws state that a business owner can still be required to pay subcontractors or suppliers even if they already paid the contractor.

If you are a business owner with construction projects to complete in the near future, it can be a good idea to first consult an attorney to discuss contract terms and legal obligations. Doing this can help you protect yourself and your company in the event of a construction dispute.

Tue Aug 28, 7:22pm