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Contractor Walked away from job site

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Posted by: from Mississauga
7/30/2011 at 11:41:49 AM

All,

Here is my situation. I hired a contractor to finish my basement did all the leg work that I could do. Established a written contract with a payment schedule did go and check his work etc. Work was started as per schedule and all of a sudden on Wednesday the contractor disappeared from the job with his tools. Did try to call him couple of time sent him emails on what happened and this morning I did receive an email from him stating this below.

Sorry for the delay response, but it's been very crazy the last couple of days. I'm sorry to inform that my company is in the process of bankruptcy. My company was slapped with a major fine this week for a accident that occurred last year. I cannot operate right now, and I also do not have liability insurance anymore. As I've been telling my customers once everything is settled I will finish what needs to be done. So please be patience and I will get done what needs to be completed. Sorry for any

inconveniences and I hope you understand .

What do I do now?

Can I hire another contractor to finish the job?

Do I have any legal rights?

My contract stipulates as per below...

14. Default by Contractor

In the event that (a) the Contractor does not perform the Work in accordance with the terms of this Contract and has not corrected the default within 7_ days of written notice by the Owner, or (b) the Contractor becomes bankrupt or makes a general assignment for the benefit of its creditors, or if a receiver of the Contractor is appointed, then the Owner may finish the Work in accordance with the plans and specifications as the Owner may deem expedient, but without undue delay or expense.

In such event, the Contractor shall not be entitled to any further payment under this Contract, but upon completion of the Work, an accounting shall be made between the Owner and the Contractor. If the unpaid balance on the Contract Price shall exceed the expense of finishing the Work, the Owner shall pay the Contractor for such parts of the work as were payable or completed at the time of the default. However, if such expense shall exceed such unpaid balance, the Contractor shall pay the difference to the Owner.

After this experience it's really hard for me to trust anyone. Appreciate your advice.

REPLIES (1)
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Pidy in Windsor
Date/Time8/4/2011 at 5:29:17 PM

Hi

First of all, I think you are lucky. You got response from your contractor at least, so you know what's going on for the disappearing. Be aware that those situations happen all the time in this profession.

What do I do now?

Try reduce loss to the minimum. You should prepare and start from the beginning. You may go after him as fraud by hiring a lawyer if you can approve your contract is in his bankruptcy process period. But I doubt it works if the fee on lawyer exceed

your loss.

Can I hire another contractor to finish the job?

Absolutely. But I also doubt any contractor like to take it without extra-fee.

Do I have any legal rights?

Absolutely. You always have legal rights in this country. But don't count on that.

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