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Showing posts from November, 2007

When Contractors Fail to Pay Subcontractors

In most home improvement contracts, the contractor serves as the general contractor (GC) and hires the subcontractors to do various aspects of the job. It is understood that it is the homeowner's duty to pay the contractor, and the GC then pays the subs. At least, that is how it is supposed to work. One of the most upsetting experiences for a homeowner is when a subcontractor knocks at his door or walks off the job stating that he has not been paid. It is even worse when a sub files a lien on the property. The homeowners are caught off guard and frequently between a rock and a hard place. They face a difficult choice: Should they re-pay the subs in order to get the work done, or rigorously defend against subcontractors' claims? In Massachusetts, if the sub's contract is with the contractor, he cannot prevail legally against the homeowner for payment. However, this is no consolation for a homeowner who is defending against a lawsuit, or living in an unfinished house.

Attorney's Fees and Construction Contracts

Many of my clients come to me with their claims and assume that the law will afford them their attorney's fees if they prevail in their case. Unfortunately, nothing could be further from the truth. The law does not provide you with attorney's fees unless there is a law that applies to your claim that gives you attorney's fees, or, they are provided for in the contract. There are a variety of ways of wording attorney's fees provisions in contracts. They can be very one-sided, or more equal. I was just reviewing a contract for a client that allows for the contractor to recover his attorney's fees if he has to pursue payment from the homeowner. This is the contractor's contract, and not surprisingly, it does not afford the homeowner the same benefit. Since in this case, I represent the homeowner, I would be inclined to cross that line out. However, it is unlikely that the contractor would agree to such an exclusion. The compromise provision would allow the p

The Home Improvement Contractor License and the Construction Supervisor License

Both contractors and homeowners alike often do not realize that there is more than one type of licensing for contractors in Massachusetts. From the Office of Consumer Affairs & Business Regulation (OCABR) website: A Home Improvement Registration certificate and a Construction Supervisor License are different. The Home Improvement Contractor (HIC) Registration Program is primarily a business registration program designed to protect consumers. The registration process identifies the responsible party for the contracting business, who is responsible for the company’s business practices. A registration does not certify that a contractor has a set of construction skills. A Construction Supervisor's License, however, does fulfill that function. If a contractor is going to be supervising certain structural work, then that person will need to have a license, which presently requires that the contractor has at least 3 years of construction or design experience and has passed a written e