Construction Issues

It doesn't seem as if the contractor on the project cares about deadlines and has not installed several things correctly. I stopped payment on a check for work not completed and he put a mechanic's lien on my property. What should I do?

Unfortunately you face a common problem with contractors. They overbook projects, and are often behind.

In the future, consider making your contract for their services as explicit as possible, with details of what you guys agree to do and what are the consequences of delays. (For example, you can put in a clause that each day delay in the construction will reduce the price paid for the construction by $X.) Be careful about “change orders” and other modifications to your construction project. Once you are in the middle of a project, a contractor can usually demand a premium for any changes you make, so plan carefully in advance.

Most people have problems with contracts because the contracts are not specific enough to cover the issues that arise. That’s the reason why many lawyer drafted contracts are so long and detailed, they are trying to avoid every possible problem that may come up. Be clear and specific, or you are asking for trouble!

As for your current situation, it’s a lot like responding to a toothache instead of preventing the problem by going to the dentist regularly. Much of the damage is already done and the procedure to cure it is complex, painful and expensive.

The issue is whether the contractor “materially breached” the contract by delaying performance, or you “materially breached” the contract by not paying him. This can only be resolved in the courts. (Sticking with the dental analogies, litigation is the dental equivalent of a root canal.) Get a good lawyer (like a good dentist) and fight it. Or, call your contractor up and settle things out of court, even if it means paying them something you don’t think they deserve. (Just extract the tooth. It may cost you, but it may be a lot less expensive then the root canal.) Settling unfairly is often cheaper then litigation. Even if you settle, have a lawyer review your settlement agreement to “prevent” any future problems. (Don’t operate on yourself!) It’s a lot cheaper to spend a little more time and money preventing a future problem then fixing it later.

Good luck, and make sure you don’t miss your dental checkup!

If this does end up in court will that solve the mechanic's lien problem? Can the judge order that removed?

Yes, a judge can remove the mechanic's lien. The judge may also award you damages and attorneys fees, but assess the risks here carefully. Consult your lawyer and proceed with your eyes wide open.