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Update pg 3 - Had to fire contractor for home reno and need to recover costs:
Posted on 6/29/16 at 11:03 am
Posted on 6/29/16 at 11:03 am
We hired a contractor a while back to do some work on our house. His contract included a clause that he owes us 3% of the total cost of the contract for every 5 days that he hasn't finished by the completion date in the contract.
Apparently, he had grossly underbid some work and does not have enough money to buy the materials to finish the project. This led to him firing all of his subs and staff and trying to do a lot of the work himself, in which he was not qualified to do. This led to some shotty work that will need to be redone. When we found out him running out of money, he was already several weeks past the contract completion date, and we had paid in full because of the 3% late penalties. We terminated the contract with him because he cannot ensure us when he will complete everything. We got quotes from other contractors, and there is probably about $10-12K worth of work to be done, including materials.
Do I have a legitimate claim to make him pay for all of this? It get's really confusing because of the 3% late penalties. One advantage that we have to collecting money is that I paid for everything via credit card, so I can dispute charges if need be. Any advice would be much appreciated.
Update - I filed a credit card dispute for less than $10k in July. A few weeks ago my bank sent me a letter confirming that the dispute was resolved and they awarded me the full amount requested.
Apparently, he had grossly underbid some work and does not have enough money to buy the materials to finish the project. This led to him firing all of his subs and staff and trying to do a lot of the work himself, in which he was not qualified to do. This led to some shotty work that will need to be redone. When we found out him running out of money, he was already several weeks past the contract completion date, and we had paid in full because of the 3% late penalties. We terminated the contract with him because he cannot ensure us when he will complete everything. We got quotes from other contractors, and there is probably about $10-12K worth of work to be done, including materials.
Do I have a legitimate claim to make him pay for all of this? It get's really confusing because of the 3% late penalties. One advantage that we have to collecting money is that I paid for everything via credit card, so I can dispute charges if need be. Any advice would be much appreciated.
Update - I filed a credit card dispute for less than $10k in July. A few weeks ago my bank sent me a letter confirming that the dispute was resolved and they awarded me the full amount requested.
This post was edited on 10/13/16 at 12:13 pm
Posted on 6/29/16 at 11:05 am to SUB
You'll never get back one penny.
Posted on 6/29/16 at 11:10 am to SUB
Chalk it up as a lesson in construction. Always vet your subs.
Posted on 6/29/16 at 11:10 am to alajones
Why not? I technically paid him in full and he couldn't complete the work. Why wouldn't that hold up in a credit card dispute, or even small claims court?
Posted on 6/29/16 at 11:13 am to SUB
Because he won't pay. He is now a ghost.
Posted on 6/29/16 at 11:14 am to SUB
You are dumb for paying in full up front
Posted on 6/29/16 at 11:15 am to SUB
Sue him and file complaint with contractors board so he won't do this to other people if you used credit card dispute transactions don't just say goodbye to your money fight for it you may never get back but at least try
Posted on 6/29/16 at 11:17 am to SUB
quote:
paid him in full
NEVER do this.
Posted on 6/29/16 at 11:19 am to SUB
confused about you paying in full before the work is done(big mistake btw,) if the contract stipulates that he would be penalized for going over the completion date, anyway, he's a fly by night that took your money to try and keep his head above water or buy/pay for labor/materials for other jobs that were in progress, or go to Vegas, anyway, it's highly unlikely that you'll ever see any money from him, he's broke, life lesson, move on, and never pay in full in advance for a job like that
Posted on 6/29/16 at 11:20 am to SUB
Never even pay half up front.
The only way you'll see something back is if he's bonded with the state. Then you can try to go after the bond. I don't know if that's required there. If he is, tho, all you would need is his contractor's lic or possibly his business lic.
The only way you'll see something back is if he's bonded with the state. Then you can try to go after the bond. I don't know if that's required there. If he is, tho, all you would need is his contractor's lic or possibly his business lic.
Posted on 6/29/16 at 11:20 am to TheDude321
Never pay him up everything front, but him taking a credit card might help you here. I know some cc's allow you to get refunds if the services paid for weren't rendered to your satisfaction.
This post was edited on 6/29/16 at 11:24 am
Posted on 6/29/16 at 11:22 am to SUB
NEVER PAY A CONTRACT IN FULL UNTIL THE WORK IS DONE!!!!!!!
Posted on 6/29/16 at 11:23 am to SUB
What you get for taking low bid, instead of most qualified bid.
Posted on 6/29/16 at 11:24 am to AUCE05
quote:
Yeah, who pays up front?
Next time make weekly or monthly progress payments minus 10% retainage. That way he has an incentive to come back and finish. That is the way most the government entities does business. If the future contractor has issues with these terms, move on, you don't want him.
Posted on 6/29/16 at 11:25 am to Cosmo
I did not pay in full up front. The late penalties eventually caught up with the amount that I had paid him.
Posted on 6/29/16 at 11:26 am to SUB
quote:
The late penalties eventually caught up with the amount that I had paid him.
that's just fricking retarded, cut bait and hire someone else.
Posted on 6/29/16 at 11:27 am to SUB
SUB - I'm like the other guy who stated "lesson learned". His bad work has nothing to with it because he was trying but you terminated the contract which I assume means you fired him. If I hire someone to do a 100 foot fence and they do the fence but it looks like crap, I still have to pay them. Shoddy work or not, I hired them and they built the fence. Trust me, I've seen it all and heard it all when it comes to contractors. Learn from it and move on. It was YOUR decision to hire this guy so YOU must accept that. Live and learn my brother. Live and learn.
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