Ifmy contractor is not paying his subs, am I responsible for the monies owed?
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Ifmy contractor is not paying his subs, am I responsible for the monies owed?
My general contractor has not paid his subcontractors and now he is filling for bankruptcy. At least 3 different subs that I know of are out a total of $25,000. Am I going to be responsible for paying these people even if I have no contract with them and owe the GC only $6,000 (which I have been holding back waiting for waivers from the subs, not knowing the amount he owed them).
Asked on March 9, 2012 under Real Estate Law, Massachusetts
Answers:
Keith Langer / Keith G. Langer, Attorney at Law
Answered 12 years ago | Contributor
Much depends upon the terms of your contract with the GC and his with the subs. Note that if his contract with them did not include a waiver of mechanic's liens, you may have to pay his subs to clear your title.
You need to have an attorney review the contracts to ascertain your liabilities and rights.
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