Q: We finished some renovations on our home and made the last payment to our contractor last week. Yesterday, one of the people he brought in called us and said he had not been paid by the contractor, and we needed to pay him. That does not make sense since we already paid for the work. Is this legit? — Margo
A: Whenever you work on renovations to your home, it is important to have a detailed contract with plans laying out the details of the project.
Like any contract, it should be as specific about the details, such as the brands and types of materials used, along with time-frames to complete each stage of the project.
Besides the contractor’s responsibilities, the contract should outline what the homeowner must do. This will reduce misunderstandings and identify other concerns to ensure the renovation is completed how you want it to be.
After the contract is signed, you will still need to pay attention to the details of the project. Check the plans before they are submitted to your municipality to ensure they match what was agreed to.
Once work starts, know who the subcontractors working on your project are. While your contractor will pick the subcontractors, you remain responsible for ensuring they get paid.
Subcontractors may lien your home even if you paid your contractor who did not pay them.
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Get proof that the subcontractors were paid before you make progress payments to your contractor.
Sometimes the contractor will use the progress payment to pay the subcontractors. In this case, you should write the check jointly to the contractor and subcontractor.
After the work has been completed pursuant to the contract, you should ensure that you get written releases from the subcontractors before making the final payment.
Also, ensure all municipality inspections have been completed, and the permits are closed out.
Any renovation can be challenging, and things are bound to go sideways in some ways.
That said, by being detailed and paying attention, you can help reduce the risk of serious problems.
Board-certified real estate lawyer Gary Singer writes about industry legal matters and the housing market. To ask him a question, email him at gary@garysingerlaw.com, or go to SunSentinel.com/askpro.