What are the rights of subcontractors when a contractor is paid?
In California, subcontractors have rights when it comes to payment from a contractor. As the party that contracts out the work, a contractor is legally obligated to pay their subcontractors for the work they have completed. This payment is known as lien rights. Under California lien law, subcontractors can place a lien on the property they have worked on if they are not paid. This lien will remain on the property until the subcontractor is paid in full. This ensures that the subcontractor is compensated for their labor and materials, and allows them to recoup their costs. Subcontractors also have the right to sue the contractor if they are not paid. This is known as a breach of contract claim, and it can be filed in civil court. The subcontractor can then seek reimbursement for the money they are owed, as well as any legal fees they may have incurred. Lastly, subcontractors have the right to contact the attorney general of California if the contractor has failed to pay their legal obligations. The attorney general can then investigate the matter and ensure that subcontractors get the compensation they are due. In summary, subcontractors in California have the right to a lien on the property, the right to sue a contractor for breach of contract, and the right to contact the attorney general if necessary. It is important that subcontractors understand their rights in order to protect themselves and their business.
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