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Sonoma County contractors fight to get paid

  • Heavy equipment from Cats4U create a road for a new home above Knights Valley.

These days, the most popular classes for Sonoma County builders have nothing to do with bidding projects or framing homes.

Instead, contractors are filling up courses that teach them how to get paid after the job is done.

"Those classes have been sellouts," said Robert Cantu, president of the North Coast Builders Exchange, a Santa Rosa trade group that offers the classes.

Contractors today must struggle not only to find work but also to collect on their bills, said Cantu, also owner/president of Western Builders in Santa Rosa.

For some, including two local building materials companies, the worst period for bad debts came a few years back when a wave of contractors filed bankruptcy during the worst construction downturn in decades.

But others said that many companies are still getting hurt by unpaid bills.

"It's pretty clear that people in the construction industry are having a hard time paying their bills," said Tim Hannan, a Santa Rosa attorney who specializes in construction law. "I've had many clients melt away because they're losing their businesses. They're losing their houses. The landscape is littered with tragic cases."

In the Builders Exchange classes, contractors learn how to file a mechanic's lien. The legal claim gives contractors or their suppliers the right to collect payment for work and construction materials directly from the owner of the property. As a last resort, the property can be sold at auction to pay the debt.

If a subcontractor is not paid by the general contractor overseeing the project, the subcontractor can file a lien to force the property owner to pay them — even if he or she has already paid the general contractor, attorneys said.

To use a mechanic's lien, a company must give the landowner a preliminary notice, sometimes called a "pre-lien," within 20 days of starting the work. The notice explains what can happen if the contractor doesn't get paid.


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