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Bad Contractor
In Michigan, for him to put a lien on the property he would generally have to have a written contract---but not always-- with you or the general contractor. If you refused to pay he could then take you to court. If he won a judgement against you, then he can file a lien but not until then. I have done work for local builders who told me they won't pay me---simple as that. Talked to a few lawyers and they told me I could file what is called a "clouded title" against all 66 parcels of his so that when someone wanted to buy it they would find that money was owed to me and therefore couldn't or wouldn't want it until I was paid off. Long story short: Builder paid me in full.
Also in Mi it is law that you have a Waiver of Lien which is up to the homeowner to get when the contractor gets every payment draw. This is certified by contractor that he has paid all workers and suppliers. Without it if a subcontractor or supplier can prove he worked or provided materials and wasn't paid, he can go after you since it is up to you to know who worked on your site or priovided materials. I know owners of lumber yards and concrete suppliers who regularly have to lien a customer's home when a contractor doesn't pay them. But it rest with the homeowner to get a Wavier of Lien. Without it you are a sitting duck.
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Bad Contractor
You can see a lawyer, but it might be more productive to call your state's governing body who regulates his licensure. So ask him for his license and make a complaint, and if he won't comply make a complaint anyway---that will get him off your back. Also find out through court records if he has a habit of doing this to other people and bring that as evidence. He can't just say "I'll put a lien on your property" (though like I said before in my state he can cloud the title)---he has to get a judgement from a court---in which he will have to show a contract with you that was breached---otherwise, it's just hearsay. It may turn out you will have to sue the original contractor or both. It is not your problem the other guy took too long---how do you know that they don't do this all the time? It would amount to extortion. I'm a contractor and I can't tell you how many times my schedule is held up because of somebody else. Good luck, but don't give up.
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Bad Contractor
EXACTLY! It's not the homeowner's fault he showed up--he should have been in contact with the general to begin with. Tell the general to pay for that.
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