What to do if I have an LLC and I’m doing home remodeling with a subcontractor who will not send an invoice with the waiver of leins?

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What to do if I have an LLC and I’m doing home remodeling with a subcontractor who will not send an invoice with the waiver of leins?

Do I still have to pay the subcontractor? Why leagally would a company not send an invoice?

Asked on April 19, 2013 under Business Law, North Carolina

Answers:

A J Mitchell / Law Offices of A. J. Mitchell, LLC

Answered 8 years ago | Contributor

My first question to you is: Do you have a written contract setting forth the requirement for the subcontractor to furnish a waiver of lien with its invoice for payment?  If the answer is yes, then you should withhold payment until this condition is satisfied.  If the answer is no and you are operating pursuant to an oral agreement, you have the burden of proving that the subcontractor has such an obligation.  If the subcontractor has no such contractual obligation, then you should pay the subcontractor the mutually agreed amount for its services, forget about the waiver of lien, and chalk it up for experience -- not all subcontractors are business savvy. Next time put it in writing. 


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