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Can a sub file a lien with inflated invoices?

If an electrical sub does not have a written and signed contract with the general contractor ...can the sub file a lien? Problem is the sub is sending in unauthorized and highly inflated invoices over the verbally agreed square foot prices plus non code items at $60 and hour plus materials. Also is the general contractor obligated to pay the inflated invoices in Michigan?

2 replies

Sep 27, 2021

Any person who provides labor or materials on a construction project can file a "Notice of Lien." In order to turn the lien into cash, however, the contractor must file a lawsuit to "foreclose" on the lien, and a judge has to issue a judgment of foreclosure and order the sale of your property. In other words, you will always get a chance to object to any charges the contractor includes on their lien, IF you ever get to court. As a practical matter, very few construction liens are ever litigated. Almost all are resolved through settlement negotiations. It may be time to schedule a meeting between you, the general contractor and the sub-contractor.

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Sep 27, 2021

I agree with Attorney Olson.. Any subcontractor can file a lien. The amount due is determined by a court if it cannot be settled. The problem is that a lien often is a problem for the property owner that cannot get further draws on a construction loan if a construction lien is filed. There is a way that a GC can release a lien.. by posting a bond that is 1.5x the amount of the lien so the lien will be removed.

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