General Contractor filed bankruptcy

[odyweaver]

What is the name of your state (only U.S. law)? TN
We hired a general contractor to do some remodeling. The entire job cost is $20k per contract. We have paid $10k. The GC has just notified us that he is filing bankruptcy. We think that the remaining work left to be done will cost no more than $10k - so we may be ok. But, we have reason to believe that the GC has not paid the subcontractors that have already done work on the job. Do we need to be concerned about that? Or can we safely just walk away from the GC and get someone else to finish the job? Also - can the GC require that we pay any more to him? The payment schedule in the contract is pretty vague, simply stating that payments are due upon 25%, 50%, etc completion. But what constitutes x% completion is not specified in the contract.

[HomeGuru]

Originally Posted by odyweaver

What is the name of your state (only U.S. law)? TN
We hired a general contractor to do some remodeling. The entire job cost is $20k per contract. We have paid $10k. The GC has just notified us that he is filing bankruptcy. We think that the remaining work left to be done will cost no more than $10k - so we may be ok. But, we have reason to believe that the GC has not paid the subcontractors that have already done work on the job. Do we need to be concerned about that?



**A: yes you do.
If the subs did not get paid then you the homeowner would be responsible for paying.

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Or can we safely just walk away from the GC and get someone else to finish the job?



**A: no


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Also - can the GC require that we pay any more to him?



**A: yes, under certain conditions.


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The payment schedule in the contract is pretty vague, simply stating that payments are due upon 25%, 50%, etc completion. But what constitutes x% completion is not specified in the contract.

**A: then use generally acceptable industry standards as to completion by %.