Firing Contractor - Lien Waiver?
I may have to fire the contractor I hired because he is not getting the job done.
This was a somewhat informal arrangement, although I did prepare a contract itemizing the work, cost and completion date. The contractor did not file a mechanics lein. Should I have him sign a waiver of some sort to protect me in the event he tries to file a lien of some sort? Or what else? If so, does anyone know where I can get the waiver form? Or just tell me how you handle these situations, please.
It is my experience that banks require lien waivers so get in the habit of doing it anyway. It could be an Iowa law because mechanics liens take precidence as of the date the labor starts; not the day filed. This potentially could leave the lender with an inferior mortgage to a mechanics lien.
If he will sign it, great! If not, don't worry about it unless you need to later. Hopefully the contractor will leave on good terms because he/she realizes the work is not being done as timely as you require.
Check your state law requirements in regards to leins. They are often tied to when material / labor was last done on the job.....keep good records on such.
I would advise you to go back and get releases from suppliers as well.
NC