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• In some states churches may have to pay for labor or materials twice if they fail to obtain "lien waivers" from subcontractors before paying their contractor. A North Carolina court recently addressed the issue of double payments for the same labor or materials. A Baptist church entered into a contract with a contractor for the purpose of constructing a driveway and parking lot on its property (at a total cost of $12,500, including all labor and materials). The church paid the contractor the full contract price, but the contractor failed to pay the concrete supplier for $6,500 worth of concrete. The concrete supplier sued the church, demanding payment for the concrete. The church in turn sued the contractor (who could not be located). A jury ordered the church to pay the concrete supplier for the concrete, and acknowledged that the church could sue the contractor if he ever was found. ...

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Posted:
  • March 1, 1990