Centex Homes - Pulte Homes - New Construction Homes - Workers Defense Project - Austin TX - Should builders be responsible for paying workers if the contractors they hired don't pay them?
The Workers Defense Project in Austin TX is currently going after Centex Homes and Pulte Homes, which did merge in August 2009 so they are one company now. The claim is that the builders hired out the jobs on a house, like they do in every community, to contractors. The contractors have been paid. The contractors have not paid the subcontractors, the people who actually performed the work.
Is it fair for Centex and Pulte to be responsible for the contractors not paying their workers? If Centex and Pulte already paid their bills, is it fair to make them pay again?
Where does the liability start and where does it end? Yes, the work was done. Yes, Centex Homes and Pulte Homes paid the contractors. No, the subcontractors were not paid. But why is it fair for the Workers Defense Project to then demand the builders to reach back into their pockets and pay for the work again?
I understand they feel Centex and Pulte are taking low-bid jobs to save some money, but isn't everyone these days? If a contractor bids a job, and they can't afford to pay their own subcontractors, whose fault is that?
Here's a video showing their picketing outside the home office of Centex/Pulte and a model home, along with their reasons as to why they're demanding payment. Parts are in Spanish and not translated, but you get the idea.
Personally, as you can tell from the tone I wrote this, I don't think they have any right going after the builders when it's the contractors who aren't paying their workers...
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Donna Harris, REALTOR®
RE/MAX Austin Skyline
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* Is the Builder Responsible for Paying Subcontractors? * was first published on donnahomesblog.com
Donna
In Florida the subcontractor files a lien on the property that they release when they're paid. All the contraction liens need to be paid to close.
Good luck and success.
Lou Ludwig
Lou, The SUBcontractors can't file a lien when the contract is between the contractor and the builder. They can sue their employer, the contractor, but a builder/seller is not responsible for paying the SUBcontractors.
Hello Donna, Very interesting post and by the way you never claimed your signed photo print that you won at this contest .............
Memories at Active Rain Contest Winners Announced!
VB ;o)
Sounds to me like the subcontractors are trying to sue the wrong party in this one. Their beef is with the contractors who didn't pay them.
Donna
That a big issue, civil court is very expensive. What are your states limits for small claims court? That may be the way to go, Florida is $5,000.00 per claim.
Good luck and success.
Lou Ludwig
Why would any sub work on another home for a contractor working for Centex/Pulte?
Your friend in Washington State,
Paul
Bob, THanks!
Craig, I agree... however, the workers say it's the builder's fault for taking low bids for their work.
Lou, I believe it's $10k as it recently increased from $6k.
Paul, Advance payment??