Home builder issues

write a punch list have the contractor agree that the items need to be addressed, and hold out payment until complete

Just curious, is it a lump sum turn key contract or a cost plus?

That's right where we're at presently, Contender. Since then, however, new issues arose. Never ending, it seems.

Understood. not going to be a easy one.
just keep track and try and hold back enough money that will keep him coming back until its all fixed

Yeah I think that does happen but most of their “cost” even if marked up is much cheaper than you could get it. I always felt that was the case against self contracting. If you pay more than 10% more than the GC for subs and materials, then a cost plus 10% builder seems like a bargain.
Lump sum turn key seems like a great way to get screwed too. Every dollar they shave off of the construction is a dollar in their pocket.

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Never seen one of these where the buyer did not get screwed. If you think they are charging their actual "cost", they ARE NOT. They gets subs to mark up invoices, the higher the cost the higher the plus.

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I've done work with a cost+ builder. I've never been asked to inflate invoices. Most of the time, the customer is copied when I send the invoice, but that is just one contractor. Im sure there are some like you say.

I had a similar issue on my last house. It was a turn key build and most of the finish work was sub standard (dry wall finish, paint, flooring etc.).

Punch list was massive and he would got tired of our calls. Soon he stopped responding to our email and phone calls and things got ugly.

We had to retain an attorney and file a law suit. Contractually, we first had to have a mediation (he picked the lawyer) and that was a cluster frick. Our expert witness inspector presented his opinion of what it would take to remedy all of the issues we had with the house and they offered 4% of that number. Our negotiations got them up to 8% of the total, which we did not accept.

The mediation lawyer told us that we should just accept their offer, otherwise we would have to spend 50+ thousand dollars and even if we won he would just file bankruptcy and continue building houses under a different name.

I told him to stick it and we started the law suit process. After several depositions, he decided to settle and wrote me a check (it cleared) for 90% of our ask which was plenty enough to fix the issues.

Good luck.

Thanks for the input fellas

Hold the final payment until ALL punch list items are done to your satisfaction. Once you pay they have no reason to do anything further.

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So many things need attention. Shoddy craftsmanship, etc.

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Can you elaborate on what the issues are? I work in this field and a lot of times homeowners have unrealistic expectations. I’m not saying this is the case, but I know people that think a home should look flawless like a car that came off an assembly line. That isn’t going to happen with the lowest bidder. Homes are built by hand and minor imperfections are to be expected. However, the whole house shouldn’t be covered with issues. Defining ‘issue’ is where this gets tricky. Sub contractors usually leave things undone or half-assed. It’s the contractors job to fix it before you give him a final payment. But I’ve seen homeowners put a laser level in a room and complain because electrical outlets on one side aren’t exactly matching the other side. Lol. That’s not how it works. Especially when homeowners want to get 5 quotes, go with the lowest one and expect perfection.

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My list is lengthy and for the sake of brevity I'll spare it.

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What are some examples? I think people here will give you some honest feedback. Are we talking crooked walls or too much drywall cut out next to an electrical box? One of those is easily fixed by the painter. As someone else mentioned, many things get resolved at the very end. The cabinet guy can come in and adjust the cabinets. The electrician ahould come back after power and fix the switches and outlets if something isn’t working. A lot of problems that seem large have an easy explanation. For example, I’ve seen people get pissed at an electrician for something not working only to find out the drywall hanger covered several outlets and switch boxes. That’s a easy fix too. Plumbing fixtures that appear ‘off’ can often simply be adjusted. Doors that don’t shut correctly can be adjusted. Everyone has a different definition of ‘shoddy work’. Mine would be someone installing a floor crooked (which I’ve seen). Or installing cabinets that don’t open bc they hit nearby trim or other cabinets.

As the homeowner, it’s frustrating to have to be the one to catch some of the issues. A lot of contractors are lazy and will only fix what the homeowner complains about. And some homeowners are exhausting bc they think everything immediately looks perfect like the end product on HGTV. Some people just shouldnt watch the sausage get made.