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Updated over 3 years ago on . Most recent reply

User Stats

65
Posts
15
Votes
Steven M.
  • Developer
  • Encino, CA
15
Votes |
65
Posts

ALWAYS PURCHASE YOUR MATERIALS YOURSELF or else!

Steven M.
  • Developer
  • Encino, CA
Posted

Anyone, and I really mean anyone that is doing any form of construction/rehab, a word of warning: Always buy whatever materials (lumber, cabinets, flooring, sheetrock, plumbing, tile, sprinkler system, lighting, etc., etc) you need for a project seperately with your own credit card/checkbook. You own it. Not the contractor. In all due respect to contractors/subs, never ever let a contractor or anyone else purchase materials other than yourself, esp. if you don't know them well. You can go with the contractor, but the actual register purchase should be with your own credit card/checkbook as the rightful owner.

Reason: If you ever have a falling out or dispute with anyone working on your project who purchased project materials, that they could easily claim it as theirs, take off site (steal??) or whatever, and still they bill you for it even if they never finish the project or left the materials on site, good luck trying to get it back in a dispute or if they walk off the job. Let's say you get into a dispute, you fail to pay them or withhold payment or the contractor/sub fails to show up again or whatever, and you have paid them some monies already, well, technically, until you pay for all materials, under most state laws, those materials are not yours.

If you personally purchased the materials seperately from the contractor/sub, that is your property irrespective of any disputes/claims the parties may have. You want to purchase and own the materials yourself, even if you have to go with the contractor/sub to do so, and it may be a pain, but having rightful ownership will at least mitigate any future disputes that may arise.

On the same note in CA, and likely in most states, any contractor can put a Mechanics Lien on your property's title pretty much at will. Simply filling out a form, and for $15, can go into the County Recorder's Office and record a ML against the title of your property without notice to you (you won't know until you do a title search and see the lien). He/she doesn't need lawyer either in CA. Getting it removed is a whole legal process. Though recording one on title without just cause is fraud, but a lot of good that does you while fixing/flipping your house up quickly.

ALWAYS get a clear Legal ML Waiver and release stating essentially the contractor has been paid and full, and releases all future rights and claims. Furthermore, it is imperative that his/her subs sign a seperate release because if the sub doesn't get paid by the General Contractor, rightly or wrongly, they too can put a lien on your property, I am not sure what other states do, but in CA, there is no policing of ML. If a contractor gets p---sed off randomly, a simple trip to the Recorders/Clerks office for $15 will make him/her feel a lot better.

Never has happened to me but I know others who had nightmares. Watch your title and get waiver releases at the end of each project from anyone who set foot on your property that ever picked up a tool!

Most Popular Reply

User Stats

4
Posts
7
Votes
Scott B.
  • General Contractor
  • California
7
Votes |
4
Posts
Scott B.
  • General Contractor
  • California
Replied


While trying to be nice, and not offend the origial poster, I couldn't disagree more.

The reason most people have problems is simply because they take the wrong approach. You should view your contractor like you would any other memeber of your team. If you hired an attorney, accountant, banker, etc, you would check references and find somebody worth their salt.

Many people assume they are going to somehow get a better deal by finding bottom-of-the-barrel guys to do the work. They wind up with guys tweaked out on drugs, not showing up, stealing stuff, and doing crappy work.

Although we area bigger shop, we can do everything "turn-key" better, faster, and often CHEAPER than if you tried to piecemeal it yourself.

A few pointers:

1) If you don't trust someone, you shouldn't be working with them. Period. Check references, do your due diligence, make sure they are licensed and bonded. If they are bonded, and leave you hanging, you will be compensated for your damages. You can also go after their license.. assuming you hire a licensed contractor.

I've been very fortunate and have never been burned. I just don't work with people I don't trust.

2) Buying your own material doesn't save you money. Licensed contrators get better pricing on virtually everything. If your trying to avoid their "mark-up".. I've got news for you. Your still paying it - just to Home Depot instead.

We don't mark up most of our materials.

3) Insisting on going with your contractor everywhere is a waste of both of your time. If your job is hourly, your paying him instead of a $10-per-hour laborer to go shopping. If it's fixed fee - EVERY contractor will build the PITA factor into their price.

4) As stated above: ALWAYS get lein releases. EVERY TIME YOU WRITE A CHECK.

Your GC's invoice should inclued lein releases, or "partial" lein releases from each sub he is paying. The "partial" is for jobs that aren't complete yet, but they are acknowledging that you paid them so far.

Don't pay in cash, you have no recourse, and if you have a contractor that is okay with tax evasion.. what else is he okay with?

5) Yes, any contractor can put a lein on your property for $15. Actually, its worse. They don't even have to have done work on your property to file a lein. That's right, I could walk downtown and file a lein on your property even though we have never met.

That said, the last place I ever want to waste a few hours is at the County Recorders Office. And it wouldn't hold up once it was challenged.


I guess the whole point is you shouldn't have issues if you work with good people. Good people aren't any more expensive than bad people. But bad people will cost you time, frustration, money, and the color of your hair.


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