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| Remodeling |
The prime contractor has a direct contractual agreement with the homeowner, so if unpaid, he can sue on the contract and record a mechanic’s lien. Subcontractors, workers and suppliers don’t have a contract with the homeowner, so if the homeowner pays the prime contractor only for some of the work, and thus the prime contractor fails to pay the laborers, subcontractors and materials suppliers, their only recourse is to file a mechanic’s lien on the home.
If you receive a Preliminary 20-Day Notice, don’t panic. The preliminary notice isn’t a lien; it is a notice that a subcontractor or supplier has provided or will be providing goods and services to improve your property and could file a lien claim if they are not paid.
Keep track of these notices so you know who has a potential claim against your property. Subcontractors and suppliers must provide you with this notice in order to maintain their right to file a lien. If they don’t provide you with the notice, they lose the right to file a lien.
Contractor Warranties in California
According to the California Business and Professions (CBP) Codes and the California Civil Code, there are basically three contractor warranties that are laws in California.
One-Year Warranty: New Construction and Remodels
The standard “one year expressed limited warranty” also known as the “Fit and Finish Warranty” is an industry standard and a California law (Civil Code 900). Thus, it is considered an implied warranty. Even though the state has adopted a standard of the warranty, a written warranty is always better to obtain. With a one-year written or implied warranty you are required to file a complaint within the one-year period (CBP Code Section 7091-c).
Four-Year Warranty: All Contractors/All Jobs
A licensed contractor is required to give a warranty on items installed under his or her license to be free from defective installation, including but not limited to the local codes and manufacturers’ installation requirements for up to four years after the completion of a job. The claim may be made on any defect, either known or unknown, and discovered within the four-year period (CBP Code Section 7091-a). A licensed contractor can be held liable for repairs and damages caused by the defective installation. A licensed contractor who fails to meet the minimum installation requirements can be sued in a court of law and a complaint can be filed with the CSLB.
Ten-Year Warranty: Structural Defects
A licensed contractor and/or the engineer on record is required to provide a warranty on certain engineered components that they are to be free form engineering defects, miscalculation or omissions. Such defects could be site stability, foundation integrity, site retaining walls and roof framing. These may be considered latent defects, which lay dormant and are undiscoverable without certain expertise or disaster, and include foundation settling, excessive sagging of beams or other framing, which may be undersized, show unusual site movement and the like.
Paying for the Work
It is normal for a contractor to ask for partial payment in advance and, provided you have taken the precautions recommended, you should expect to provide a part of the cost before the work begins. However, it is notorious that scammers involved in door-to-door ripoffs will ask for payment in full in advance and then abscond without completing (sometimes without even starting) the job. In California, contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less regardless of the project.
Even with a reputable business and a sound, written contract in place, you should not pay in full until the work is complete and you have inspected it yourself and found it satisfactory. A partial payment schedule usually will specify what part of the job has been done when a payment is due. Inspect the work and make sure the contractor has met the schedule before you make your payment.
If you are asked to sign a certificate of completion, do not do so until all the work is completely finished, the site is cleaned up and you are satisfied.
Working With Remodeling Professionals
Before work begins, ask your remodeling contractor what inconveniences may occur while the project is under way and plan for them accordingly. Be sure your contractor is aware of vacations or special events so he or she may schedule their jobsite time appropriately. Following are other points to consider:
— Determining the Scope of the Project
Depending on your needs and the size or complexity of your intended remodeling project, there are several different options for you to explore before finalizing your plans.
If you receive a Preliminary 20-Day Notice, don’t panic. The preliminary notice isn’t a lien; it is a notice that a subcontractor or supplier has provided or will be providing goods and services to improve your property and could file a lien claim if they are not paid.
Keep track of these notices so you know who has a potential claim against your property. Subcontractors and suppliers must provide you with this notice in order to maintain their right to file a lien. If they don’t provide you with the notice, they lose the right to file a lien.
Contractor Warranties in California
According to the California Business and Professions (CBP) Codes and the California Civil Code, there are basically three contractor warranties that are laws in California.
One-Year Warranty: New Construction and Remodels
The standard “one year expressed limited warranty” also known as the “Fit and Finish Warranty” is an industry standard and a California law (Civil Code 900). Thus, it is considered an implied warranty. Even though the state has adopted a standard of the warranty, a written warranty is always better to obtain. With a one-year written or implied warranty you are required to file a complaint within the one-year period (CBP Code Section 7091-c).
Four-Year Warranty: All Contractors/All Jobs
A licensed contractor is required to give a warranty on items installed under his or her license to be free from defective installation, including but not limited to the local codes and manufacturers’ installation requirements for up to four years after the completion of a job. The claim may be made on any defect, either known or unknown, and discovered within the four-year period (CBP Code Section 7091-a). A licensed contractor can be held liable for repairs and damages caused by the defective installation. A licensed contractor who fails to meet the minimum installation requirements can be sued in a court of law and a complaint can be filed with the CSLB.
Ten-Year Warranty: Structural Defects
A licensed contractor and/or the engineer on record is required to provide a warranty on certain engineered components that they are to be free form engineering defects, miscalculation or omissions. Such defects could be site stability, foundation integrity, site retaining walls and roof framing. These may be considered latent defects, which lay dormant and are undiscoverable without certain expertise or disaster, and include foundation settling, excessive sagging of beams or other framing, which may be undersized, show unusual site movement and the like.
Paying for the Work
It is normal for a contractor to ask for partial payment in advance and, provided you have taken the precautions recommended, you should expect to provide a part of the cost before the work begins. However, it is notorious that scammers involved in door-to-door ripoffs will ask for payment in full in advance and then abscond without completing (sometimes without even starting) the job. In California, contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less regardless of the project.
Even with a reputable business and a sound, written contract in place, you should not pay in full until the work is complete and you have inspected it yourself and found it satisfactory. A partial payment schedule usually will specify what part of the job has been done when a payment is due. Inspect the work and make sure the contractor has met the schedule before you make your payment.
If you are asked to sign a certificate of completion, do not do so until all the work is completely finished, the site is cleaned up and you are satisfied.
Working With Remodeling Professionals
Before work begins, ask your remodeling contractor what inconveniences may occur while the project is under way and plan for them accordingly. Be sure your contractor is aware of vacations or special events so he or she may schedule their jobsite time appropriately. Following are other points to consider:
- Consider moving personal property from construction areas and declare all work zones off-limits to children and pets.
- Put all changes in writing if your remodeling project is modified while work is being done. Both parties should sign the amendment.
- Keep a job file including contract, plans, specifications, invoices, change orders and all correspondence with the contractor.
- Request that a contractor’s Affidavit of Final Release be provided to you at the time you make final payment and a final waiver of mechanic’s lien. This is your assurance that you will not be liable for any third-party claims for nonpayment of materials or subcontractors.
— Determining the Scope of the Project
Depending on your needs and the size or complexity of your intended remodeling project, there are several different options for you to explore before finalizing your plans.
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