bad contractors

Chuckman

Chuckman

Well-Known Member
Joined
Oct 9, 2005
Location
Huntersville
So I hired a GC to do a remodel on my present sunroom- take down a cheesy 'kit' style unit and rebuild with traditional framing and roofing. Already was wired with power and on a nice solid foundation. So we hired him, signed the contract and paid the 30% down. Sure enough, (12/7) he tore off the old unit, dumpster shows up, puts on the new roof and gets us 'dryed in'. The contract was that I was to do the things that I could to save $. I sided the new walls, painted, and hung up the fascia and soffits. So during this time, the electrician comes (12/20 ish) and does his thing after I pay another 20% as promised. He did some things wrong, so I called the GC and tell him to come back. So, 12/28 comes and the electrician FINALLY comes back. He reworks his deal and Im waiting for inspection so we can get the GC to bring in his insulation/drywall man. But the stupid GC doesn't file for an electrical permit, much less call for an inspection. So now Im stuck. Cant proceed, and haven't been able to contact anybody to progress in 2 weeks. The trick now is that the dumpster is still here (been here a month) and my HOA and wife are BITCHING about it. So I can't even get removed since the GC owns it. Whats the legal way to proceed with something like this? I have paid on time, but the work just stopped and even though I haven't paid the last 20%, it will take more than that to get another set of contractors to finish the job = Ive paid more than what Ive got so far. Its just that the GC just up and disappeared. He's got (or used to have) and A+ BBB rating for the last 11 years. I soooo want him to show and finish the work, but dang, its hard to trust the man now. Whats up with legal proceedings bringing in a different set of contractors and suing him for the work not done, but paid out?!!
 
Not sure about your legal recourse. That will depend upon the wording of the contract. We generally do or draws at 33% at job start, 33% as soon as drywall is hung. That of course means that all rough inspections are complete and passed, and the final draw at completion. Never pay a second draw until all rough inspections are passed. That is one of your larger budget items is paying your licensed trades. Hopefully the guy comes back and finishes.
 
So what I noticed here is that the GC did the work w/o a permit.
Does your contract say that he'd get them? E.g. is it clear that he should have and dropped the ball? Customarily it's their job but not always.

If he was contracted to and didn't, then you have something to "lean on" him with. E.g. point out to him that you can easily go to the county and tell them about the work done "illegally" and he'll get in a lot of hot water. Technically his license could be in jeopardy for that.
Problem is IIRC that at the end officially it's the homeowner's responsibility in the county's eyes so if it dosn't say it in the contract, you're basically just "telling on yourself".
 
It sucks, but it happens... subcontractors go out of business and things have to be worked out and someone else has to be brought in...

If your date is correct, it has not been two full weeks... which, in construction time and with a holiday, is nothing. I don't think you have to jump to suing anybody just yet. I am assuming you haven't heard from him this past week, though; Does the GC have a permit?
 
At this point use more honey than vinegar. Call and act nice and cool.
 
Are you gonna be needing new floors in this sunroom/

Hope you get it worked out Chuck. He could be on vacation or something.
 
There's not enough info here. Was the GC contractually obligated to pull the permits and call for inspections? Also, it's only been a week. Electrician was there on the 28th, you didnt hear from him last week. When February rolls around and you still haven't heard from him, then maybe you can hire somebody else. Unless of course you hear in the meantime that he's gone under.

Also, the HOA can pound sand. Until there's a CO, it's a construction site.
 
I hope he comes back. My folks paid a GC to do some remodel work.. He knocked down a wall and never came back!
 
Dylan W. said:
Are you gonna be needing new floors in this sunroom/
Hope you get it worked out Chuck. He could be on vacation or something.
Click to expand...

Knew that was coming:flipoff2:
 
GotWood said:
At this point use more honey than vinegar. Call and act nice and cool.
Click to expand...

you definitely catch more flies with honey but you catch the most with bullshit. never forget that.
 
Shawn said:
Also, the HOA can pound sand. Until there's a CO, it's a construction site.
Click to expand...

not if there isn't a permit on file w/ the county!
 
That's the question that has yet to be answered... seems there isn't an electrical permit, but is there a general construction permit? Was the GC officially responsible for all that?
 
ok, heres the latest. I called and paid to have the dumpster removed ($250 well spent). just on a hunch, I looked through my phone records and indeed found the carpenters #. He hasn't been paid- uh oh! somebody else got screwed! yes, the contract says that he pulls the permits. scope of work is pretty detailed. we passed framing and thats where it all stopped. the whole deal with hiring a GC was so I didn't have to mess with permits myself. carpenters going to the guys office tomorrow to 'settle the bill' - he was PISSED when he found out that I had paid up and he hadn't seen any $. even scoped out the dudes Facebook and he was alive, well, and not in jail as of last sat.
 
If he hasn't paid his subs, they can put a lein on your house. Follow up with him constantly so this doesn't happen.

Contact these people: www.nclbgc.com File a complaint and they will investigate him and if he isn't doing his work as a GC, they can suspend his license to do GC work (assuming he has one, only required if work exceeds $30k)
 
Can the subs do that? I... I'm not a GC, obviously, but I'm under the impression that only applies to a direct contractual obligation. If an owner has a contract with the GC and it covers everything, then the Owner pays the GC. The GC has contracts with a sub-contractors... so the GC pays the subs. If you don't pay the GC, they can put a lien on your house but basically it just has to be paid if you sell or refinance... I figured that the subs would put a lien on or sue the GC...

I am assuming it works the same as with design services... owner pays architect and (typically) the architect pays the other design consultants. At least that's the 'traditional' way it is done... ?
 
Chuckman said:
ok, heres the latest. I called and paid to have the dumpster removed ($250 well spent). just on a hunch, I looked through my phone records and indeed found the carpenters #. He hasn't been paid- uh oh! somebody else got screwed! yes, the contract says that he pulls the permits. scope of work is pretty detailed. we passed framing and thats where it all stopped. the whole deal with hiring a GC was so I didn't have to mess with permits myself. carpenters going to the guys office tomorrow to 'settle the bill' - he was PISSED when he found out that I had paid up and he hadn't seen any $. even scoped out the dudes Facebook and he was alive, well, and not in jail as of last sat.
Click to expand...

Hmm... sorry to hear this. Anything in your detailed contract for something like this?

FWIW, 30 days is the usual time frame for getting paid, once a payment request is submitted. How long has the carpenter been waiting?
 
Yes, the subs can and will put a lein on your property if the GC doesn't pay. You are the one with the property and have the materials and their labor tied up into it.


Even though the GC is there do manage everything, sometimes they need managing...

Be sure to get a Lein Waiver from the GC once everything is complete. This will ensure that he has paid all subs and vendors and assures you no leins will be placed on your property. Without this, you are at risk.

Follow up with town or county inspections department to see if permits have been pulled. If building permit is pulled but subs haven't been listed, a simple change of contractor ammendment can be done but it costs a few $ (usually about $60 or so). If the city or county finds out work has been taking place without a permit, they can issue a cease and desist order and all work must stop. Be sure to follow up on this GC.

There should be at least a General permit, electrical permit, and possibly mechanical if there was HVAC in there. I'm assuming there is no plumbing or you'd have a permit for that as well.
 
you guys arent reading that the GC wont answer the phone or come to the door of his office. hes updating facebook though...
 
Egg the GC's house and truck. It won't accomplish anything, but it will make you feel better.
 
Depending on what level of contractor he is (limited, unlimited, etc.), he has to submit accounting paperwork proving he has operating capital to pay subs, etc. If he can't prove that or he is broke, he has to hire a bonding company to cover his finances. If he can't pay and has a bonding company covering him, suing him may relieve some stress as the bonding company is generally there for that purpose. You may can recover some funds and get the subs off your back, preventing a lein. Let the bonding company recover their costs from him...
 
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