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Can a fraudulent contractor file lien or receive general contractor profit and overhead funds?

LouisianaMechanics Lien

My contractor lied, signed a contract with me and signed my mortgage company paper work that he was licensed, insured and bonded but he’s not. He has hired subs that we’re doing shoddy work that had to be fixed over and over. We got to a place where home was 90% complete and he agreed to leave job and let someone complete work for us and send a final invoice. His final invoice is three times what it should be as he’s demanding $11,000 of our contractor overhead and profit funds along with other miscellaneous items. Can he file a lien?

7 replies

Nov 29, 2021

Unlicensed contractors do not have lien rights.

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Nov 29, 2021

Can you provide me with any place to have proof of this in writing?? (website, etc) Thanks!!

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Nov 29, 2021

https://www.levelset.com/news/lousiana-unlicensed-contractors-no-lien-rights/

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Nov 29, 2021

You have saved my sanity!!!! Thank you so much!!! We were also fixing to move back into the home and found pipes leaking in the wall the guy hadn't installed properly so now we are ripping out new sheetrock to repair at our expense.

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Dec 1, 2021

Can a person operate under another person's general contractor license but signing contracts as it is in their name and have payments made out to himself??? is this contractor fraud also??

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Dec 3, 2021

I would probably have to understand the arrangment better to answer that question.

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Dec 3, 2021

So he signed a contract with us for $103,000 under the name "ex - XYZ Construction". He also signed paperwork for our mortgage company including a W9 under that name and that he was licensed, bonded and insured under "ex - ABC Insurance". He starts the work and we have problems from the beginning with poor quality but would fuss and they would rip out and redo. The 6 week job became over 5 months and we grew weary and agreed he should leave as he told us he was having trouble getting helpers to complete the work. He sends out a final invoice requesting our general contractr O & P funds plus more. During this time we find out from another of his customers that he is NOT licensed. They confront him and he says it's none of your business. They say yes it is and he said well technically I'm working under another person's license. BUT that person has another business name and we wrote all payments of almost $100,000 to the name that he orginally told us he was licensed under NOT the name of who he said he was working under. We have NO information on the person he claims to be working under.

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