Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Windsock who wrote (138770)	8/12/2001 6:56:37 PM
From: hmaly	Read Replies (1) \| Respond to of 1575608

Windsock Re...Nope it is the General Contractor not Intel, the property owner, that has the dispute with the subcontractors who filed the liens.<<<<<<< You can say that, but in reality, it is most often the property owner, in this case Intel, who refuses to pay the general, because of real or most often perceived deficiencies; and as a result, the general doesn't pay the subs. In this litagious society, it is often cheaper to pay your lawyers and not pay the subs, and in the end, pay for the work interest free, and sometimes at a disount after 2 yrs. You can bet Intel, if it really was interested in getting rid of the liens, would pressure the general to pay the subs. As the general usually gets paid as a percentage of completion, the more of the building Intel engineers, or architects ,agrees is completed, the more the general himself is paid; so the general usually isn't near as picky as the property owner. Also, if Intel pays the general for work, the general can be sued for fraud, as he collected for the subs work, but failed to pay the sub. So most likely, Intel didn't pay the general, who in turn hasn't paid the sub. The lien is only good if the property is sold or if the lien holder wins a judgment and then forecloses on the property.<<<<< Usually there is a construction loan during the construction phase which is then turned into a long term building loan after completion. The sub himself first must file a notice of Lien rights, then a notice of intent to file a lien, and then the lien itself, within a period of time. The final lender depending upon state law, requires all notices of intents, and liens to be satisfied which are filed at this time, before the loan is changed from a construction loan to a final loan. So, if the property is sold, or the financing is changed, it usually requires the liens to be paid off. On a project, this huge there are certainly performance bonds to protect Intel against any failure of the General to pay the subs. You seem to assume Intel has paid the general, and the general didn't pay the subs. Usually, it would be Intel who hasn't paid the general, and as a result, the general hasn't paid the subs.