Have you ever had experience with a construction lien? Let’s hope the answer is no.
For the sake of conversation, let’s say that you hired a general contractor to put an addition on your home. The general contractor rarely does everything involved with the addition. Usually, specialists in the electrical, plumbing,and HVAC systems do these tasks. And this process is called sub-contracting. The general contractor manages the project and hires these companies to do their portions of the job. Additional sub-contractors may be on the job, such as masons for the foundation, framing crews, roofers, sheet rock crews and more.
But if the general contractor does not pay these sub-contractors, what happens?