§ 8470 Contractor Lien Defense Costs

• •If someone sues because they weren't paid for work done on a project, the main contractor has to pay for their own defense in court.
• •While the court case is happening, the property owner can hold back money from the main contractor equal to the amount being claimed in the lawsuit.
• •If the property owner loses the case and has to pay, they can take that money out of what they owe the main contractor. If they don’t owe enough, they can get the rest from the contractor or the contractor’s insurance bond.

Imagine you hire a builder to fix your house, and the builder hires a plumber. The plumber doesn’t get paid, so they sue you to get their money.

The builder has to pay for their own lawyer to fight the case. While the case is going on, you can hold back the money the plumber is asking for from what you owe the builder. If you lose the case and have to pay the plumber, you can take that money out of what you owe the builder. If you already paid the builder in full, you can still get the money back from the builder or their insurance.