We work with many building contractors as a subtrade throughout Ontario, and also with many property owners who decide to manage their building project themselves, and not hire a General Contractor or Project Manager for their build. The vast majority of our clients pay their bills on time, and without difficulty, but the few contractors and home-owners who do not pay should know what the consequences can be.
Many property owners do not know that a subtrade can place a lien on your property if they are not paid by the general contractor.
Sometimes the property owner doesn't even know this lien has occurred until the bank calls them about it. On the rare occasion, the general contractor has enlisted sub-trades to work on the building, and doesn't pay them for their work, even though the property owner may have paid them already. The following article talks about the practice of a 10% payment "hold-back" until 45 days after the build is complete to cover the costs of unpaid trades and other unknowns.
A contractor’s ransom | MoneySense:
