Ryan,
You want to get lien releases from the contractor and ask for lien releases from the subs & material suppliers. In laymen terms you write him a check and he supplies you with a lien release “Conditional” upon your check clearing. Then a “Unconditional” at the end of the job. You should have the subs provide then also to make sure they are getting paid and if you get Pre-limbs from suppliers make sure you get releases from them also. If your concerned about payments -you can write joint names on the checks also(B-Builder & Ralfs Lumber). It can be alot of paperwork , but better safe than sorry, Keep the payments in line with completion of work=Example: Concrete- 30%Payment with digging footings,forms.30%@ pouring footings,30%@ pouring slab ,10% @ final. Hope this helps . wade
Ps, Don’t forget proof of workers comp ins & general liability.
I have a propoerty being rehabbed and I want to make sure my General contractor pays his subs. How do I (home owner) protect myself from having liens put on my property by the subcontractors ?
This is why you need to find a reputable contractor. You can get all the lien-releases in the world but they won’t mean a thing when you sale is held up due to a mechanics lean. Make sure to pay as the work is done and get a receipt of payment from the subs.
If you are worried that your contractor isn’t pay his people you need to find a better contractor! The paperwork Wade talked about will cover you though. Trust your instincts and if this guy gives you a bad feeling and you haven’t signed a binding contract then inform this current one it’s a no deal and find another.