Contractors are hired by developers to do sitework and utility systems on their developments. Developers borrow money from the banks for their projects but do not use the money to pay the contractors. Contractors file a lien against the developer/property, and the developers then file for bankruptcy. The bank takes over the property and the liens go away. The bank sells the property and the contractor is STILL NOT PAID and the new owner gets the benefit of the developed property. The contractor needs a way to get paid for these projects as contractors still have to pay for supplies and labor. What do you think about this issue? Considering the current economy and the major hits the construction industry has taken, should the Georgia Utility Contractors Association, Inc. continue pursuing legislative changes to right this wrong being done to contractors who have invested their time and money into these projects and are losing financially to the developers and banks?
Please also take the time to peruse the Development Foreclosure Survey which has been posted to the blog. GUCA contractor members are encouraged to fill the survey out and return it to the GUCA office so your companies can be part of the statistics.
