Got an email regarding mechanics liens and unfortunately the email they provided me to respond was incorrect so I'll answer it here. But first the question:
As part of my kitchen remodel project, I purchased maple kitchen cabinets from a kitchen & appliance store in Burlingame, CA two years ago. I had my contractor install the cabinets. After installation, we discovered that the outside panel of the pantry came unfinished and wasn't maple but birch (it actually should have been the inside panel of the pantry that isn't seen). After going through several different unsatisfactory scenarios to try and correct the problem, the kitchen & supply store hired a wood refinisher to put a veneer on the unfinished panel and stain it. The work was completed approximately 3 months ago. Yesterday i n the mail I received a letter from the wood finisher stating that because the kitchen & supply store had failed to pay the invoice, he was demanding payment from me and he will place a lien against my property if I don't pay it. I have discovered that the kitchen & supply store is going out of business and it wouldn't surprise me if he is also filing bankruptcy. My question is this, given the fact that I did contract with this person to do the work, am I liable to pay the outstanding invoice that was sent to the kitchen & appliance store?
If you have a direct contractual agreement with the wood finisher, he has 90 days from the last time he was working on your project to officially record the lien with the county. If it is past that time he has lost his lien rights. Many contractors get sloppy with these time lines and often miss them but threaten anyway. They are betting you don't know the lien laws. Anybody can file a lien but to perfect it in court the burden of proof is on him and he has to meet strict criteria to win his case. Plus he has to hire an attorney to do this and that will cost him, so he must be absolutely sure he meets the requirements of the law.
If the kitchen store hired him as a subcontractor, then he has to send you a preliminary notice within 20 days of starting work on your project in order to retain his lien rights. Again if he didn't, he still will try to get money from you by filing a lien but he doesn't have any stand at this point. Be sure to read the section on mechanics liens on my site as well as the CSLB site.
Check your time line on when he was last on the property. If it is past the 90 days, he doesn't have a solid case. You can wait for the lien to become null and void and then petition the courts to have it removed. You can also consult with an attorney who specializes in construction law who can counsel you further.
Wednesday, May 07, 2008
Thursday, March 13, 2008
Last week I got a call from a woman who was referred to me by a contractor whom I know. I typically don't take calls from homeowners but rather prefer they go to my site and glean the information they need there. But the woman was in a terrible position with another contractor, needed some answers that the "good" contractor couldn't provide and he knew I would be able to steer her in the right direction.
After hearing about her situation - and it was just so typical of unethical behavior - I gave her some suggestions on what steps she needed to take and made sure that she filed a complaint with the Contractors State License Board. To that end, I also sent an email to the Enforcement Chief giving him the contractors license number along with the woman's phone number so that he could contact her. And he did. The woman called me immediately after she spoke with him and was so emotional, in tears, and grateful for all the support she was receiving. I was just glad that she found a good contractor that I know and that the Enforcement Chief followed up on my request to contact this woman. So, here's what happened:
The woman hired a contractor to do the necessary repairs to her house that suffered severe smoke damage. She had met him on the horse trails around her home where many other homes were lost in the fires. After striking up a conversation with her, he told her he was a contractor and that if she wanted to get a bid he would be willing to access the damage. He then "convinced" her that he would wait for the insurance money and could get started right away. Well, he apparently had her sign two different contracts and she added some stipulations of her own in the second contract which also stated he was to get $1000 to start the project.
As the project began, the contractor's attitude changed from nice guy to one of being ticked off, was verbally abusive and constantly asking for more money. The woman, in her early fifties, recently became disabled and he was aware of her limitations. He wanted to know the entire amount she was getting from the insurance company - which is none of his damn business - and thankfully she declined to disclose the amount. The work itself was shoddy and the roof replacement was horrible, according to the insurance company who came out to inspect the work. He quickly told the woman to fire this contractor and get someone who is competent and experienced to repair his work as there were safety issues at stake as well. The situation only got worse after this.
When she told the contractor about the insurance report which was documented, the contractor started screaming at her and told her she HAD to let him back to do the necessary repairs on his own work. Really? Why didn't the idiot just do it right in the first place then? Answer: Because he's incompetent to do it right, doesn't know how and doesn't care about performing quality work; he's just out to make a buck, not build a business with a solid reputation. And no, she doesn't have to let him back in to do the repairs if he's proven that he can't do it right, which he has, and it's documented.
So what does he do? Why, he threatens to sue and lien her home of course. And get this: the guy just got his license in December of 2007 and three months into having the license he's already threatening to sue and lien a homeowner not to mention the shoddy work he performed. Wonder where he learned that from?!! This is the ugly part of the construction industry that sadly exists and seems to be growing as new licensees enter the arena and others who are struggling to stay afloat just "switch sides" and start behaving badly, violating the contractors' laws and no longer interested in building their business. It's all about the money. Seasoned contractors who are in it to build a solid business and a good reputation wouldn't even think of creating a scenario like the one I just described and I'm glad to say I know quite a few of them these days as a result of own work with my site.
The only thing the woman did was to check his license status with the CSLB and as I always say, just because someone has a license doesn't necessarily mean that they will be ethical or perform quality work that meets industry standards. And this is a perfect example of just that.
Tuesday, March 04, 2008
Here's a recent email I've received from a Casting Director in New York. They are actively looking for both homeowners and contractors who are having problems with their remodeling projects. So if you think you fit the bill - whether you're a homeowner or a contractor - contact them. They need some folks to work with so don't hesitate to contact them.
Hi, I just took a look at your site and it is a really helpful resource. I am a casting director for superfine films and we are casting a show that deals with home owners and contractors. I was hoping you might know some families that are in need of help. Thanks in advance for all of your help.
CASTING CALL FOR HOMEOWNERS AND CONTRACTORS IN DISPUTE My name is Michael Raptis and I am the Casting Director for Superfine Films. We are a TV production company based out of New York City. I am looking to cast Homeowners and Contractors for a home renovation dispute mediation and resolution TV show. Most of the homeowners and contractors that cross your path would love the opportunity that our TV show offers. I am seeking out current disputes that I might be able to help resolve to the satisfaction of both parties. Could you share with me some leads? The scope and breadth of the dispute can range from any of the problems you usually see including, but not limited to, type of work, budget, build problems, personal problems, and homeowner changes. Since we are a television show, we MUST complete the project in a relatively short amount of time (about 6 days), which will fit nicely with the needs of a homeowner and contractor. This means we seek projects that are large enough in scope to show a good "before" and "after" experience, and small enough in scope to be finished in no more than about three weeks.
Some examples would be a kitchen expansion, new room, bathroom remodel, garage build, etc. Please keep in mind that we will consider all sizes of work if the people and the project appear good for the show. We intend to make absolutely sure that the dispute is solved to the satisfaction of both parties and that the project gets done right, on time and on budget. It should be a benefit for the homeowner via dispute resolution and project management, and for the contractor for the same reasons as well as excellent publicity for his or her business. And of course, it could save them both the time and cost of legal action. Interested parties should contact me immediately! The sooner we speak, the sooner we can try to resolve these disputes! Please call or email me ASAP! Michael Raptis Casting Director Superfine Films 60 Grand Street, 4th Floor New York, NY 10013 O: 212-941-6838 C: 646-784-0779 Email Michael Raptis michael@superfinefilms.com
ABOUT THE COMPANY:Superfine Films is a Manhattan based film and television production company specializing in high-quality social issue documentary and reality television. Our mission is to create unique, compelling, genre-redefining content that challenges, excites and engages viewers from start to finish. Founded five years ago by award-winning filmmaker and television producer Steven Miller, Superfine has since grown to include the talents and energies of a tightly knit corps of writers, producers, shooters and editors, and is represented by N.S. Bienstock. Superfine is currently in production on the sixth season of the hit show Psychic Detectives, the Court TV crime documentary series that explores the use of psychics by law enforcement and how psychics have helped to actually solve crimes; and Rock and Roll Acid Test, the Fuse Network series that plays a wild game of Truth or Dare when we put music myths and legends under the hot lights of our ultimate scientific testing. Past work includes Heroes, a reality recreation based series for the Hallmark Channel, which depicts stories of ordinary citizens in acts of extraordinary courage. Superfine was nominated for an Emmy for the documentary film Meeting with a Killer: One Family's Journey, a story of redemption and forgiveness set inside one of Texas' most notorious prisons.
P.S. Sorry for not posting the past 4 weeks but that nasty flu bug invaded our home and we're all just getting back to life!
Monday, January 28, 2008
Whenever I receive emails from people who have been burned by their contractors, there is one common element that always comes through: Trust.
We trusted the contractor. We trusted he would pay his sub contractors. We trusted he knew what he was doing. We trusted he got the permits. We trusted he would come back the next day to make the repairs. We trusted...
Trust is something that is earned. You just don't arbitrarily trust every person who you come in contact with be it personally or professionally. There are people from all walks of life who can't be trusted. That's common sense. How would you know?
You know it from how people behave, what they say and do and to a certain extent how they are perceived by others - their reputation. When it comes to contractors, your research including talking with past clients helps you to form an opinion. By doing all the background checks you'll then be more confident about your choice But you don't based it on trust-that has yet to be earned as you begin working together. Based on his/her performance as your project begins you'll begin to trust him. Or not. If you made your choice intellectually rather than blindly trusting, you'll likely have a good experience.
Folks who didn't take the time to check out their contractor of choice got burned badly. They fell prey to someone who was charming or perhaps good at putting on a false front and they bought it. Half the time they're licensed but just because someone is licensed does not necessarily mean that they are going to be ethical or perform quality work. Very often the homeowners will admit that they just didn't take the time to checkout the contractor thoroughly but figured he was such a nice person and talked a good game.
I'll share a short story with you about a woman whose home was lost to the Southern California wildfires back several years ago. It was actually told by an investigator from the CSLB to a group of homeowners who were attending the San Diego Rebuilds! event where I was on the "Don't Get Scammed" panel with her and others. The woman who lost her home to the fires ultimately received a check from her home insurance company for several hundred thousand dollars. Never having had that kind of money given to her in one lump sum made her uneasy. When she went to hire a contractor to rebuild her home she gave the entire amount over to the contractor. She NEVER saw the contractor again. He closed up shop, left the state - who knows what island he's enjoying himself on. When the investigator asked her why she gave him all the money upfront, the woman told her she didn't trust herself. And now she's living in a trailer probably for the rest of her life.
So much for trusting the contractor.
Monday, January 14, 2008
The Contractors State License Board has brought to my attention a scam operation that is going on not only in California but other states as well.
It has to do with electrial service and repair companies who do extensive advertising in the yellow pages and print ads and is run by some unsavory characters looking to rip off unsuspecting homeowners, particularly the elderly.
The ads claim low fees and service charges. But, once at the house, the service technician pressures the customer into unneeded repairs. In the more than 65 complaints filed with the CSLB, the average cost for a service call and repairs is more than $1,000.
The Nevada Contractors Board has also issued an alert to homeowners in their state as has the CSLB.
The following are a list of the names, license numbers and addresses of these companies to date and the press releases issued on this group of individuals follows:
http://www.cslb.ca.gov/General-Information/newsroom/press-releases/news20070508.asp
http://www.nvcontractorsboard.com/News_Releases/2007/071101%20Homeowner%20%20Alert%20on%20Electrical%20Specialists.pdf
| USA Services, Inc. dba USA Services | 775863 | 900 E. Hamilton Avenue, Suite 100 Campbell, CA 95008 | Estine Akopyan | Chief Executive Officer President |
| American Home Repairs, Inc. dba American Plumbing & Electric | 834206 | 777 Campus Commons Road, #200 Sacramento, CA 95825 | Seroj Avedian Russel Pal-A Gillies | Responsible Managing Officer Responsible Managing Officer |
| RMM Plumbing & Electrical, Inc. dba ASAP Electric | 833296 | 3017 Douglas Blvd., #300 Roseville, CA 95661 | Seroj Avedian | Responsible Managing Officer |
| Speedy Plumbing & Electrical, Inc. dba 59 Minute Service | 837697 | 777 Campus Commons Road, #200 Sacramento, CA 95825 | Ivica Johan Njegovec | Responsible Managing Officer |
If you've had an experience with any of these companies or someone you believe has tried to deceive you in this way, contact your state's Contractor's Board, Consumer Protection Agency or your Attorney General's office and file your complaint.
Friday, December 07, 2007
Here's a scenario that is common practice amongst unethical
contractors: The homeowner pays the General Contractor who in turn is
supposed to pay the sub contractors for work performed. But the
contractor decides to pocket all the money and later down the road, the
homeowner gets hit with a mechanics lien against their property from
the unpaid sub contractor. This is when panic sets in which then leads
to anger. Perfectly understandable and warranted.
But there are a few checks the homeowner can do to see if in fact the sub has the
right to actually perfect the lien. That's what you need to find out first because if they don't have that right to perfect the lien then it's just going to sit there until it becomes null and void and then you can go about the business of removing the lien. You can petition the courts to remove the lien yourself (the paper work required is a bit of a hassle) or you can hire an attorney to do it for you.
You can read more about mechanics liens in this section on my site.
Anyone can file a mechanic's lien but the letter of the law must be followed
in order for the person to actually make good on the lien. Sub
contractors must first send the homeowner what is called a "Preliminary
Notice" of the right to lien if they are not paid by the contractor.
Though each state has different time lines for this, in California it
is 20 days once the sub has begun work on the project. If he sends it
out 30 days later that would be too late and he missed his chance to
legally lien if he doesn't get paid by the contractor.
If the sub is outside of the time lines he will likely file the lien anyway as a way to get money from the homeowner, hoping they don't know about the law and required time lines and if they do and challenge the sub on it they'll likely ignore you and just let the lien lapse. Happens alot and it's one of the top complaints I receive each month.
The problem with the filing of fraudulent liens by a sub can be avoided by
requiring "Unconditional Lien Releases" from each sub on the job who
has performed work when you pay the general contractor for each invoice
you're presented. This is a separate lien release from the one the
General will present you with that he signs for his part as he cannot
sign for the subs: the sub contractor needs to acknowledge he's been
paid by the contractor with their own release and signatures. So it can
get easily overlooked but it's one of the best ways to stay in control
of the money being paid out.
The following email I received from a homeowner in New York is a good example of a sub who was not paid by the contractor and is going after the homeowner even though he did not file a Preliminary Notice within the required time lines for that State:
The contracting services is a private residential in new york. Job was completed 7.5 months ago. I have paid contractor in full but disagreed to the amount on the extras as he did not invoice me until the very end. Read More...
Tuesday, November 27, 2007
On November 16th I participated on a panel that was set up to help the Firestorm victims (San Diego County) avoid unscrupulous contractors looking to scam unsuspecting homeowners who are beginning to rebuild their lives and homes. There was a whole lot of good information being dissemenated rather quickly and I knew that the most important points being made were going to be much needed six months from the event and we would likely be a faded memory. Getting people to re-visit the information provided and the various websites such as contractorsfromhell.com is going to be key to jogging their memory and getting down to the business of doing their research on potential contractors.
A successful home building and remodeling project is dependent upon hiring an ethical, reliable, competent and experienced contractor. In California as well as many other states, the first step is to check with your Contractors State License Board and verify that the contractor has a clean record, that there has been no history of complaints, disciplinary action and the license is not revoked on suspended.
However, just because a contractor has no complaint history does not mean that complaints have not been filed with the Contractors Board. The Contractors Board cannot disclose complaints until and unless there have been a sufficient number racked up and egregious enough in nature to be referred to the Attorney Generals' Office and THEN the dirty deeds are revealed. In the mean time, unsuspecting homeowners are hiring these unethical contractors and surprise, surprise - getting slapped with a shocking dose of reality and a whole host of problems.
Which brings me to my next key point: Just because someone is licensed DOES NOT MEAN he/she will be ethical or perform quality work meeting industry standards. This same principal applies to organizations with paid memberships such as NARI,NAHB or the BBB. Unethical individuals will use the membership to promote themselves as fine upstanding individuals when nothing could be further from the truth. It's unfortunate that they abuse the membership but there are so many contractors over the years -including my own contractor from hell- who have been revoked, suspended, served jail time, committed grand theft and more and were members of these organinzations. Don't be lulled into thinking that if you hire someone from these organizations you're safe. You still have to do your background checks regardless of how you found the contractor. You can learn more about conducting background checks by following this link to contractorsfromhell.com.
And just to illustrate some of what I'm talking about here is an email I received this week from a homeowner who found out after checking that the license with the CSLB was "clean" later found out- after problems began to crop up with the contractor-that suddenly complaints started to show up. Happened to me and it was a hard lesson learned:
Hello, We checked out our contractor's status with the CSLB in April, and we found no complaints. We also checked the BBB. Then in mid October they were insisting that we provide the next progress payment before the next stage was completed. We of course refused. His insistance made me wonder what if he was having problems with another job. I checked the CSLB , and I found that there were now complaints showing. I then noticed that their license was now suspended because the bonding company had not canceled their insurance. Shortly thereafter they did obtain new bonding insurance retroactively. Once reinstated, we continued to debate when the next progress payment should be paid. During that time I received two preliminary notices. I then insisted on being provided with unconditional waivers for previous progress payments. I am also insisting that with my next progress payment, that he pay subs or material suppliers for any work already completed. I will provide him with a cashier check for each party, but I must obtain an unconditional waiver from each sub for past work. He is refusing to pay one of the subs until the end, but the bill from the sub is higher than what my final payment will be. If he refuses at the end to pay him, I will then owe the sub contractor . I have reported this company to the CSLB. How can they insist that they will not pay the subs until the end of the job?
You can read my response to this consumers' query in my FAQ section on contractorsfromhell.com
