we signed an agreement for the remodeling of our kitchen and gave a check for a deposit. No work or materials have been furnished yet. We requested some modifications and the contractor asked for close to 40% increase in the contract cost. we were not able to reach an agreement, the contractor returned the deposit check and indicated that he does not want to do the job and lose money. There is a lien clause in the agreement, can the contractor file or threaten to file a mechanic lien and what we can do to stop it?
Answer
A mechanics lien is only valid for labor and materials provided to a work of improvement to real property. If he never started work, he has no mechanics lien rights.
Answer
A contractor can lien and sue if he begins some off-site preparatory work on the strength of a contract that is later disaffirmed before actual on-site work begins, but it looks like you canceled before the contractor made any commitments to workers, suppliers, etc. that he couldn't escape.
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