Legislation Will Hurt Business, Homeowners

State Representative Craig Fishbein (R-90), along with members of the Conservative Caucus, today voted against a bill he said removes current protections for homeowners hiring construction contractors and potentially opens them up to litigation for non-payment regardless of whether they paid the general contractor for contracted work.

HB 7073 – An Act Concerning Remedies in Lawsuits Against Property Owners by Subcontractors and the Release of Retainage Withheld in Private Construction Contracts – changes current state law to allow construction subcontractors and suppliers to directly bill a homeowner for completed work even if they were not hired directly by the homeowner or were hired by the project’s general contractor. Additionally, the legislation creates a process that would force homeowners to place any disputed funds into an interest-bearing escrow account, and if found to have unreasonably withheld payment, pay attorney’s fees for complainants.

“The changes passed today create both unnecessary boundaries between homeowners and construction contractors, and potential legal obstacles for homeowners who may have done nothing wrong,” Rep. Fishbein said.  “Subcontractors deserve to be paid for completed work but it is unfair to place that burden on a homeowner if the subcontractor was not directly hired by them, as was specified under previous law.  Homeowners may not have the ability to verify claimed payment amounts by subcontractors or to know definitively whether those same subcontractors were already paid by the general contractor.”

Rep. Fishbein said this legislation is another attack on legitimate businesses and helps solidify Connecticut’s image as unfriendly to business.

“Connecticut is facing another massive budget deficit, and continues to struggle to get businesses to stay or open here, yet we’re passing legislation to further complicate business transactions, pulling homeowners into the middle and calling it progress,” Rep. Fishbein said. “It’s bad for business and it’s bad for the homeowner.”

The 2017 legislative session ends at midnight on Wednesday, June 7.