10.21.2008 Subcontractor Remedies When the GC Defaults
North Carolina mechanic’s lien statutes provide a subcontractor with two basic types of liens: 1) a lien on funds that may or may not have been paid from the owner to the general contractor for the subcontractor’s work; and 2) the right to assert the general contractor’s lien against the real property. In situations where the owner fails to pay the general contractor, who is still “on-site,” and the general contractor, in turn, fails to pay the subcontractor, there is less risk involved with collecting on a mechanic’s lien. In this situation, there is strength in numbers. Both the subcontractor and general contractor have an interest in proving that money is due from the owner and can present a united front when making this claim.

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