Not getting paid....civil or criminal?

[thinfool]

Awhile back I submitted a final pay request to the GC for a job we had completed. A 'normal' wait time went by....and I called to ask where my money was...the reply, "We spent it." The owner had paid the amount requested for our electrical work to the GC...normal stuff...and the GC misdirected our funds to someone else.
We eventually got this all sorted out, but it all made me wonder about the legal aspect of things.
If I was an accountant and took money for things that were not authorized, I think that would be embezzlement (jail time).
While I know that most contractual disputes are settled via the 'civil' side of things, is there ever a time when a sub-contractor could sign a criminal complaint for 'fraud' or 'unlawful taking' or even 'grand larceny' if his funds were purloined by the GC ?

 

[apauling]

Re: Not getting paid....civil or criminal?

In CA for dwellings, the lien is placed on the property, forcing the owner to pay if the GC fails to, and GC malfeasance brought to the CSLB (licence board) will bring action. I never had a complaint against me and never brought one against someone else, so I do not know how quick the dispute is settled. I think some charges are criminal.

But this is CA and everyone disparages CA.

paul

 

[charlie b]

Re: Not getting paid....civil or criminal?

Originally posted by apauling:But this is CA and everyone disparages CA.

Not everyone. Just the people who do not live there!

 

[jeff43222]

Re: Not getting paid....civil or criminal?

As long as you follow proper procedures (timely notification, licensed, etc.), you should be able to place a lien on the property. You can do this whether you are contracting directly with the owner or if you are a sub under a general.

I'd find out what the lien laws are where you live and make sure you are on top of them. It might be worthwhile to talk to a lawyer. I had mine look into this for me and let me know what I'd have to do if this ever came up.

 

[macmikeman]

Re: Not getting paid....civil or criminal?

One more thing. Most states require the general contractor to have a minimum of liquid assets (money) tied to a certain dollar value at all times. Here in Hawaii they have to have at least 25k in the bank, an equal amount as a bond, or deposit some security's equal to 25k in escrow to qualify. When gc's tell me they can't pay, the fact that they can't can be used as leverage when reminded that the licence could be suspended if the right people were informed. Suprisingly enough the mention of that fact has resulted in sudden finding of the funds and my getting paid for work done on more than one occaision.