Yesterday, a story ran in the Hernando Times about a home buyer having problems with his building contractor. Apparently this home buyer is having difficulty getting his house completed, even after paying a considerable sum of money to the building contractor. Its not really necessary to mention the home buyer, or contractor, by name since this problem arises quite frequently within the construction industry. The typical scenario involves the home buyer paying money out in good faith for a product, and then rightfully expecting the general contractor to fulfill his agreement. A small handful of contractors get into trouble for many reasons which could range from just poor management, to over extending their business, taking on too much work, incompetence, or just plan fraud. Whatever the circumstances, many people get hurt when a building contractor defaults on a job from the home buyer, to the subcontractor, and the material suppliers. Hernando County Building Director, Grant Tolbert, was quoted in this article giving advice to the homeowners, or potential home buyers, to make sure a Partial Release of Lien is obtained before any money changes hands. This Partial Release ensures that the general contractor is paying the cost of the labor and material up front and this document will protect the buyer from having a lien placed on their property by a subcontractor or material supplier. All this information can be found in the Florida Statutes 713 on the construction lien process. FL Statute 713 is a "must read" for anyone using the services of a general contractor, electrical contractor, plumbing, contractor, a/c contractor, etc. to protect their investments. The link to this site can be found at:
Each time a property owner gets hurt by an unscrupulous general contractor, the subcontractor gets labeled the bad guy when liens are placed on property. Unfortunately, the subcontractor is only attempting to collect monies owed to them which have not been paid by the general contractor. It is the property owners responsibility to educate themselves on the construction process within the state of Florida, so please take a few minutes to read Florida Statute 713. Next time you use the services of a contractor, read all the documents from the Notice of commencement, the building permit, to the Notice to Owners, and ask questions if you do not understand the process. Any legitimate contractor should not be insulted by questions of the property owner. One last bit of advice, never, never, pay for all your work up front, demand partial release of liens for all money paid out and make sure your contractor is licensed, and insured, to do business within Hernando County.
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