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. ...