After discussing a room addition with a contractor, he provided drawings for our approval. We verbally made adjustments but made it clear that we were seeking funding and could not make a commitment until funding was secured. The contractor stated that permits were backlogged and he would apply for one to get ahead while we waited for loan approval which we have not yet received. The contractor now would like to be reimbursed for the cost of the permit and drawings to the tune of $4500. We have not signed a contract. If we pay him for the permits and drawings he acquired can he then claim performance as a form of contract and place a mechanics lien on the property.
Although a contractor is required under CSLB rules to provide a written contract, the fact that he did not does not mean he cannot sue you to collect what he believes he is owed. If you decide to pay him, you need to make sure he signs an unconditional final lien release, which will prevent him from recording a lien later on.