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. ...
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This is due mostly to building permits being obtained in the City of Malden they took for ever, changes from the customer and added work loads from unforeseen items not contracted for. To make a long story short, we provided an estimate ( not a quote ) of tasks i.e bathroom remodeling, painting, hardwood flooring etc.
They paid us in phases as the job went along and for the extra work but when they canceled the contract after I tried to do an amendment for completion date they denied me. Customer went from the estimate ( not the contract ) sheet provided from the start and said we owed them money/refund for items started but not completed.The contract shows no cost per tasks. We spent double the labor to get this homeowner into there new home because there old place was sold.
When the homeowner & I couldn't meet on the numbers, they took over 4K in tools that we had on this project and put them in storage until we refunded them the monies they feel is due. Homeowner, was told to do this by the City of Malden PD as a way of leverage.Is this legal?
Now they have told me they contacted the DA's office saying I committed fraud. According to this homeowner the DAs office is looking into this on a criminal fraud case and say I will be arrested.
Looking for some feed back on all of this, Thanks