Navigating the Construction Jungle

In this episode of Chicks in Construction, Mikki Paradise and Jessica Abreu break down one of the wildest homeowner horror stories yet: a Florida custom home builder who collected more than $8.7 million from 15 families while failing to pay subcontractors and suppliers.The homeowners did what most people would consider their due diligence. They hired an established builder, signed contracts, made payments, and waited for their custom homes to be completed. But eventually, the trucks stopped coming. Then the lien notices started arriving.The episode explains how construction draws work, why paying your general contractor does not necessarily mean the subcontractors have been paid, and how unpaid tradespeople can place liens against a homeowner's property. The hosts also explain why unfinished construction can become dramatically more expensive to complete and why homeowners can end up paying twice for work they already paid for.Mikki and Jessica also break down the warning signs homeowners should look for before and during a construction project, including lien waivers, notice letters, payment schedules, large upfront deposits, and third party construction escrow services.Most importantly, they explain what to do if your construction project has already gone wrong. Stop releasing payments, document everything, run a lien search, investigate the builder's history, and contact a construction attorney in your state as quickly as possible.This episode is a reminder that prevention is often the best protection when you're building or remodeling a home.Disclaimer: Mikki and Jessica are not attorneys. Construction lien laws vary by state, and this episode is intended for educational purposes only. Speak with a qualified construction attorney in your state for advice about your specific situation.00:00 Welcome to Chicks in Construction02:00 What are Homeowner Horror Stories?07:00 Disney's senior community in North Carolina10:00 Why general contractors need construction experience13:00 The Florida construction story begins17:00 Imagine saving for years to build your dream home19:00 How homeowners and subcontractors both get hurt21:00 Why subcontractors can put liens on a property22:00 What makes a custom home different from a production home24:00 How homeowners' money is exposed during construction27:00 How 15 families were affected28:00 The three reasons homeowners didn't realize what was happening30:00 What is a construction draw?31:00 Why you should never pay ahead of the work34:00 How construction liens work38:00 Why finishing an abandoned construction project costs more40:00 How liens can prevent you from selling or refinancing41:00 The builder's sentence42:00 $8.7 million in restitution47:00 Seven ways to protect yourself48:00 Lien waivers with every draw49:00 Don't throw away scary letters51:00 How much should a construction deposit be?52:00 The danger of using new deposits to pay old bills55:00 How to find out how bad the situation really is56:00 Who should you call first?57:00 The biggest mistake homeowners make58:00 The one thing every homeowner needs to remember59:00 Share your story and follow Chicks in Construction