Question: Is it necessary to have a performance bond or a control firm to manage the funds during a home improvement project?
Answer: The laws regarding construction are quite odd in that any supplier or subcontractor on your project can place a lien on your property if he has not been paid.
It is not unusual for general contractors who have been paid for a project but are losing money, to avoid paying the subcontractor or supplier.
In that case, the subcontractor can execute a lien against your property. This is just as if Chrysler had not paid for the wheels on your car and the manufacturer of the wheels placed a lien on your automobile because the wheels had not been paid for.