Please Advise. Final Payment General Contractor California

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VeryBlessedCali
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Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

Greetings folks!

First, I want to Thank all of you, the community for all your Sage advice that had been incredibly helpful to me. Many Thanks.

Now to the issue at hand. I am 2-3 weeks from Final Payment to my General Contractor for New Construction ADU. I have researched this Forum and found that I need to secure Mechanic Lien Waivers from the GC and all his subs. GC Invoice is every 2 weeks and he provided Conditional Waiver Release on Progress Payment document for each payment I made over the last 4 months. Any other advice now that I am 2-3 weeks from Final Payment/project completion, sincerely appreciated.

Thank you very much and have a BLESSED day!
123
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Re: Please Advise. Final Payment General Contractor California

Post by 123 »

Hold off payment of final payment until the project has passed its final inspection from your local Department of Building Inspection.
The closest helping hand is at the end of your own arm.
hotscot
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Re: Please Advise. Final Payment General Contractor California

Post by hotscot »

And he doesn't get paid until you have the lien releases from him and every other contractor and/or separately licensed worker.

Please note, lien releases cannot prevent him putting a lien on you.
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Sandtrap
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Re: Please Advise. Final Payment General Contractor California

Post by Sandtrap »

Also:
Be sure to go through satisfactory completion of the final "punch list".

Also:
Final Building Inspection (closeout a permit).
Certificate of Occupancy (if a dwelling).

j :D
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Topic Author
VeryBlessedCali
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Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

123 wrote: Mon Sep 13, 2021 8:51 pm Hold off payment of final payment until the project has passed its final inspection from your local Department of Building Inspection.
Thank you 123.
Topic Author
VeryBlessedCali
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Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

123 wrote: Mon Sep 13, 2021 8:51 pm Hold off payment of final payment until the project has passed its final inspection from your local Department of Building Inspection.
Thank you 123.
Topic Author
VeryBlessedCali
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Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

hotscot wrote: Mon Sep 13, 2021 9:12 pm And he doesn't get paid until you have the lien releases from him and every other contractor and/or separately licensed worker.

Please note, lien releases cannot prevent him putting a lien on you.
Thank you hotscot. Is Lien Release the same as Lien Waiver?
Topic Author
VeryBlessedCali
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Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

Sandtrap wrote: Mon Sep 13, 2021 9:14 pm Also:
Be sure to go through satisfactory completion of the final "punch list".

Also:
Final Building Inspection (closeout a permit).
Certificate of Occupancy (if a dwelling).

j :D
Sincerely appreciate your inputs sandtrap... also, it is always a pleasure reading your comments here in this Forum. Many Thanks again.
hotscot
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Joined: Wed Feb 01, 2012 11:05 am

Re: Please Advise. Final Payment General Contractor California

Post by hotscot »

VeryBlessedCali wrote: Mon Sep 13, 2021 9:44 pm
hotscot wrote: Mon Sep 13, 2021 9:12 pm And he doesn't get paid until you have the lien releases from him and every other contractor and/or separately licensed worker.

Please note, lien releases cannot prevent him putting a lien on you.
Thank you hotscot. Is Lien Release the same as Lien Waiver?
Yup.
Good luck.
I sincerely hope you've never had problems but if you need to PM me feel free.
Topic Author
VeryBlessedCali
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Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

hotscot wrote: Mon Sep 13, 2021 10:44 pm
VeryBlessedCali wrote: Mon Sep 13, 2021 9:44 pm
hotscot wrote: Mon Sep 13, 2021 9:12 pm And he doesn't get paid until you have the lien releases from him and every other contractor and/or separately licensed worker.

Please note, lien releases cannot prevent him putting a lien on you.
Thank you hotscot. Is Lien Release the same as Lien Waiver?
Yup.
Good luck.
I sincerely hope you've never had problems but if you need to PM me feel free.
Many Thanks hotscot. Stay BLESSED!
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Sandtrap
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Re: Please Advise. Final Payment General Contractor California

Post by Sandtrap »

VeryBlessedCali wrote: Mon Sep 13, 2021 9:45 pm
Sandtrap wrote: Mon Sep 13, 2021 9:14 pm Also:
Be sure to go through satisfactory completion of the final "punch list".

Also:
Final Building Inspection (closeout a permit).
Certificate of Occupancy (if a dwelling).

j :D
Sincerely appreciate your inputs sandtrap... also, it is always a pleasure reading your comments here in this Forum. Many Thanks again.
Mahalo!
j :D
Wiki Bogleheads Wiki: Everything You Need to Know
HomeStretch
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Re: Please Advise. Final Payment General Contractor California

Post by HomeStretch »

You need to compare all the items (lien releases, final CO, punch list completed, etc.) you would like to have before making final payment against your contract terms. Hopefully the payment schedule in your contract requires these items to be completed before final payment is contractually due. A good GC should work with getting you these items even if not required by contract. But if not required, make sure the GC is aware of your expectations and the GC doesn’t have an unexpected cash flow surprise if you hold final payment due to items not specified in your contract. It’s good to end the relationship on a cordial note in case you need the GC to address any future warranty issues, etc.
Topic Author
VeryBlessedCali
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Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

HomeStretch wrote: Tue Sep 14, 2021 7:54 am You need to compare all the items (lien releases, final CO, punch list completed, etc.) you would like to have before making final payment against your contract terms. Hopefully the payment schedule in your contract requires these items to be completed before final payment is contractually due. A good GC should work with getting you these items even if not required by contract. But if not required, make sure the GC is aware of your expectations and the GC doesn’t have an unexpected cash flow surprise if you hold final payment due to items not specified in your contract. It’s good to end the relationship on a cordial note in case you need the GC to address any future warranty issues, etc.
Noted Homestretch. Thank you very much.
Topic Author
VeryBlessedCali
Posts: 133
Joined: Fri Aug 07, 2020 1:35 pm

Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

hotscot wrote: Mon Sep 13, 2021 10:44 pm
VeryBlessedCali wrote: Mon Sep 13, 2021 9:44 pm
hotscot wrote: Mon Sep 13, 2021 9:12 pm And he doesn't get paid until you have the lien releases from him and every other contractor and/or separately licensed worker.

Please note, lien releases cannot prevent him putting a lien on you.
Thank you hotscot. Is Lien Release the same as Lien Waiver?
Yup.
Good luck.
I sincerely hope you've never had problems but if you need to PM me feel free.
hotscot: Does the Lien Waiver need to be Notarized?

Thank you again.
David S
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Location: Atlanta

Re: Please Advise. Final Payment General Contractor California

Post by David S »

The big, really important things have already been addressed by others, but you might also ensure that you’ve gotten all of the owner’s manuals and warranty information for major equipment and/or appliances that are part of the construction. Most manuals are available online these days, but it’s more convenient to have them on hand with model numbers and installation dates penciled in.
I don’t think these are worthy of withholding a final payment, but it would be nice to get theses from your GC as part of his final deliverable.
SubPar
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Re: Please Advise. Final Payment General Contractor California

Post by SubPar »

Lien laws vary by state but the vast majority of states do not require notarization of lien waivers.

If I were in your shoes, I would certainly request a document (e.g., a sworn construction statement) listing all subcontractors/suppliers who furnished labor/materials, the value of work performed, and accompanying signed unconditional lien waivers from all of those parties. The warranty & manual suggestion was a good one, as was a final walkthrough with the GC to allow you an opportunity to call our punch list/clean-up items that need to be addressed.
hotscot
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Joined: Wed Feb 01, 2012 11:05 am

Re: Please Advise. Final Payment General Contractor California

Post by hotscot »

Yes, on this^^^

And, not to stress you, but in CA a lien release is worth the paper it's printed on.
It may have value in a future disputes if they ever occur, maybe.

But it does not prevent a lien being placed on you. That's a privileged right Contractors have in CA, regardless of lien releases.

If you part on good terms you should be ok.
Iphone5
Posts: 51
Joined: Mon Nov 18, 2019 12:52 pm

Re: Please Advise. Final Payment General Contractor California

Post by Iphone5 »

VeryBlessedCali wrote: Mon Sep 13, 2021 8:14 pm Greetings folks!

First, I want to Thank all of you, the community for all your Sage advice that had been incredibly helpful to me. Many Thanks.

Now to the issue at hand. I am 2-3 weeks from Final Payment to my General Contractor for New Construction ADU. I have researched this Forum and found that I need to secure Mechanic Lien Waivers from the GC and all his subs. GC Invoice is every 2 weeks and he provided Conditional Waiver Release on Progress Payment document for each payment I made over the last 4 months. Any other advice now that I am 2-3 weeks from Final Payment/project completion, sincerely appreciated.

Thank you very much and have a BLESSED day!
1.Punch list complete
2.As-built drawings
3.Releases from All notice to owner from vendors/ suppliers
4.Final releases from GC, subs, and suppliers
5.Certificate of Occupancy
6. Permits closed out
7. Owner maintenance manuals and owner training if required is pool
8. All warranties from GC and subs. Usually 5 year for HVAC, 20 years for roofs, standard 1 year from GC, etc
9. Contact list of all subs
10. Terminate Notice of commencement
11. All change orders resolved
12. Extra materials paint, flooring, etc
13. Finishes list for future use

That’s all I can think of right now

Good luck
Topic Author
VeryBlessedCali
Posts: 133
Joined: Fri Aug 07, 2020 1:35 pm

Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

HomeStretch wrote: Tue Sep 14, 2021 7:54 am You need to compare all the items (lien releases, final CO, punch list completed, etc.) you would like to have before making final payment against your contract terms. Hopefully the payment schedule in your contract requires these items to be completed before final payment is contractually due. A good GC should work with getting you these items even if not required by contract. But if not required, make sure the GC is aware of your expectations and the GC doesn’t have an unexpected cash flow surprise if you hold final payment due to items not specified in your contract. It’s good to end the relationship on a cordial note in case you need the GC to address any future warranty issues, etc.
Very helpful, Homestretch. Thank you!
Topic Author
VeryBlessedCali
Posts: 133
Joined: Fri Aug 07, 2020 1:35 pm

Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

David S wrote: Tue Sep 14, 2021 2:40 pm The big, really important things have already been addressed by others, but you might also ensure that you’ve gotten all of the owner’s manuals and warranty information for major equipment and/or appliances that are part of the construction. Most manuals are available online these days, but it’s more convenient to have them on hand with model numbers and installation dates penciled in.
I don’t think these are worthy of withholding a final payment, but it would be nice to get theses from your GC as part of his final deliverable.
Appreciate that, David S. Thank you!
Topic Author
VeryBlessedCali
Posts: 133
Joined: Fri Aug 07, 2020 1:35 pm

Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

hotscot wrote: Tue Sep 14, 2021 4:47 pm Yes, on this^^^

And, not to stress you, but in CA a lien release is worth the paper it's printed on.
It may have value in a future disputes if they ever occur, maybe.

But it does not prevent a lien being placed on you. That's a privileged right Contractors have in CA, regardless of lien releases.

If you part on good terms you should be ok.
Thank you hotscot. Duly noted. GC is actually completing work On Time and I am happy about that. I ordered a dozen high end Thermal Tumblers with his company Logo on it as a modest gift token for him. I do see the parting will be in good terms unless the Final invoice has an unexpected exorbitant amount that was not agreed upon.
Topic Author
VeryBlessedCali
Posts: 133
Joined: Fri Aug 07, 2020 1:35 pm

Re: Please Advise. Final Payment General Contractor California

Post by VeryBlessedCali »

Iphone5 wrote: Tue Sep 14, 2021 5:17 pm
VeryBlessedCali wrote: Mon Sep 13, 2021 8:14 pm Greetings folks!

First, I want to Thank all of you, the community for all your Sage advice that had been incredibly helpful to me. Many Thanks.

Now to the issue at hand. I am 2-3 weeks from Final Payment to my General Contractor for New Construction ADU. I have researched this Forum and found that I need to secure Mechanic Lien Waivers from the GC and all his subs. GC Invoice is every 2 weeks and he provided Conditional Waiver Release on Progress Payment document for each payment I made over the last 4 months. Any other advice now that I am 2-3 weeks from Final Payment/project completion, sincerely appreciated.

Thank you very much and have a BLESSED day!
1.Punch list complete
2.As-built drawings
3.Releases from All notice to owner from vendors/ suppliers
4.Final releases from GC, subs, and suppliers
5.Certificate of Occupancy
6. Permits closed out
7. Owner maintenance manuals and owner training if required is pool
8. All warranties from GC and subs. Usually 5 year for HVAC, 20 years for roofs, standard 1 year from GC, etc
9. Contact list of all subs
10. Terminate Notice of commencement
11. All change orders resolved
12. Extra materials paint, flooring, etc
13. Finishes list for future use

That’s all I can think of right now

Good luck
This is Super Helpful, iPhone5 Many Thanks for this!!
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