My roofer gave me a contract to reroof, repace soffits and gutters. For $20000.As work was being completed i paid all but $5000. Now that the job is 95%done the gutter guy and roofers are compaining to me they haven't been paid. The contractor says he took care of it but I haven't heard back from the subs. Should I pay the gutter guy with the remaining money owed to the contractor
One way to determine if everyone on your project has been paid is to require your contractor to provide you with lien waivers from all of their subcontractors, showing they've been paid. Also, asking the contractor to sign a document swearing that everyone's been paid can be useful too. That way, it will be easy to tel if somethings wrong - like if subs refuse to provide lien waivers and/or if your contractor refuses to provide you with that sworn statement. Levelset discusses why owners should collect and require lien waivers, here: The Property Owner’s Guide to Lien Waivers. You can also download free waiver forms here: Free Louisiana Lien Waivers Forms & Templates.
As far as withholding payment - it definitely makes sense to hold onto the final payment if you have reason to suspect that some subcontractors on your job have not been paid. However, before leapfrogging your contractor and directly paying subs, it's a good idea to try and get to the bottom of the payment status of those subcontractors. Asking them directly about whether they've been paid may be a good start, and collecting lien waivers could provide some reassurance.
If you refuse to pay your contractor and instead pay their subs, it could create bigger headaches for you - so it's important to get a clear picture of what's going on before making any rash decisions. Otherwise, you could end up with payment disputes, breach claims , or even having to pay twice.