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So I hired a Licensed Roofing Contracter to reroof my house. I have no issues with the main reroofing project. The contractor is Palm Beach County, the project in Martin County.
However I received a Notice to Owner from the Supplier. I contacted the supplier who said I should ask for a release from the contractor specifically naming the Supplier, PRIOR to making final payment.
"Before you make the last payment to your contractor, obtain an affidavit from your contractor that
specifies all unpaid parties who performed labor, services or provided services or materials to your
property. Make sure that your contractor provides you with final releases from these parties before
you make the final payment."
My contractor is refusing to do this. They want the final 20% payment PRIOR to providing me with some all encompassing release that I haven't seen. They state this is the norm, and this is "how it works". They are furious that I dare to ask for what appears to be my right under state law.
My question is, is this how it works or should I hold my last 20% until they give me the release from the supplier?
What are the potentials for a legal disaster regarding this?
The goal is to protect your home from liens by materialmen who may not be paid for the materials they provide. If you know the supplier, you can call them and ask if the roofer is in good standing with them and explain the situation to them. If the roofer is a good company, this should not be an issue for the supplier. If they balk at giving you info, I'd be suspicious of their credit standing and would get an attorney to put the money in escrow until they can provide you with a release. The release comes from the supplier, not the roofer in Texas. I don't know about Florida. He's also not going to sign a release until he's paid. The gist here being this roofer may not have the bucks to carry his own work or is milking the company of all profits leaving no operating capital. Around here, that's pretty typical of the roofers. You have to look hard for the old companies to find a guy that's in it for the long run, does quality work, and doesn't spend money he doesn't have.
Thanks I did call the supplier a second time. She told me NOT to pay the roofer without the release and wants me to wait to speak to their head credit person who was in court. (probably trying to get money from a roofer).
Florida has strict laws, rules and regs for roofers because of hurricanes. Every time thousands of homes lose their shingles, anyone with a hammer and a few illegal friends become 'roofers' without a license or a permit. Even many legit operators are under funded, don't pay workmens comp [50% of the total bill] or have liability insurance. And they don't have funds to purchase the shingles for your home. They get the supplies on credit from the shingle supplier. They need the remaining 20% to pay the supplier or the supplier will not give them an advance for the next job.
The department of business and professional regulation notice that is posted above pretty clearly states the supplier should be paid, and the suppliers lien on the home released, prior to the home owner making the final payment.
The final payment should be more accurately tagged as the roofers profit, not the suppliers payment.
Have the roofer meet you at your bank with the forms completed for a handover of forms for cash. Do NOT be bullied by him. If there is a problem at the bank, put the money into an escrow account instead, pending his getting his act together. You will want a bank manager or loans officer to witness things, because I smell trouble if the transaction occurs just between the two of you.
Beware roofers. I discovered by accident that although the roofer gave me a sample of the roofing shingle /material which I picked from his display of samples that the day of the install he could not supply the product. This after he removed the old roof. So I had to accept whatever shingle he was able to provide (whatever was left in the suppliers warehouse) because at the time I only had tar paper on the roof. I think perhaps it would be a better system if the homeowner purchased all the materials and had the materials on site. Then hired a roofer to install the materials.
Well I spoke to the supplier again. She said to insist on an exchange of my last payment for the release of lien specifically naming the supplier. My roofers girl in office gave me a rigamarole of "it can take weeks to get the release of lien", while the supplier has said, no it only takes a few hours.
They suggested having the roofer and I meet at the local office of the supplier (I've been calling the main office in Tampa), and the roofer can pay the supplier, I can pay the roofer, and get my release all at once. The roofer can call in advance stating they will stop by to pay, and the supplier will have the release ready. I told the supplier how much I owe, and while they didn't give the number the roofer owed, its more than what I owe the roofer. I can get a bank check I suppose.
I'm not looking forward to sending this idea to the roofer but I will. Along with the pdf I referenced above. I just can't believe that since they've been in business since the 70's that not one other homeowner has ever insisted on this point. The supplier even said they'd been around a looooooong time and know better than this.
Since the roofer owes more than what you owe him, I would strongly suggest, regardless of the situation, to make the check out to the roofer AND the supplier. That pretty much means the roofer has to run the check by the supplier and when the supplier gets it he will apply all of the funds to your job. Split checks are fairly common in the industry with folks not having enough capitol to finance their own jobs. The hope is that they make enough so they can carry their own work without all of this crapola. Occasionally we are asked to use a family member/friend as a sub on our houses. The check is always made out to the sub and supplier. That keeps me from having to pay for it again. I've helped a few friends that start up a new business the same way. But the suppliers name on the checks means he had the money in hand. If he didn't apply it to your materials, he can't file a lien on the property. FWIW, if this long term company is sounding flakey to you, be aware that the laborers can also file on your property. That's why any job over $500.00 should be bonded. Few ever ask for it, even fewer know what it is.
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