Building Code Violation

3/13/2022 at 4:01:50 PM

In Alberta you must be a 'Licenced Prepaid Contractor' (which includes bonding) in order to receive money for work prior to completion, with some exceptions.

https://www.alberta.ca/prepaid-contracting-licence.aspx

I understand the rules are different in Ontario which might explain the number of cases in the news/media where a contractor has been paid and cannot be found.

3/13/2022 at 4:13:46 PM

Hello Rina,

I'm so sorry to hear that your project became so complicated.

Unfortunately, this is one of those situations where it can be hard on everyone.

If the city has made an error, that does not help their credibility, although the prevailing codes must be enforced.

If the contractor had the stairs approved, they would have expected to have ended their direct project cost.

And of course you, as the homeowner, want everything done professionally and to code.

From my limited knowledge of this project, and assuming everything I understand is correct, I would think that if you decide to hold funds until completion, the contractor will be motivated to correct matters quickly.

This would be a good time to try and rebuild calm communication with the contractor, assuring him that you will have payment ready immediately upon completion.

Sometimes we have had the funds put in the hands of a third-party to ensure it will not be held back as compensation or any punitive damage.

Just my opinion, from what I understand, I hope this helps and that it comes to a satisfactory conclusion for everyone.

Gordie

3/13/2022 at 7:28:25 PM

Tina

In my opinion only.

Firstly any reputable contractor should know better than to construct anything against code. And for that reason alone he should have no problem returning to make things good and to keep his reputation.

Even though both parties figured the project was complete but actually was not, then I would think that there is no problem with holding funds until completion.

If you and your contractor cannot come to term I would suggest having another contractor in to provide you with a cost of repair. Then suggest to your present contractor to pay him out less the repair costs plus a small amount for contingency fees.

It would be best to keep with the original contractor as you may relieve him of any warranty or other liabilities should something ever occur.

Best of luck with your choices.

Dennis

3/14/2022 at 12:12:57 PM

Technically, he does know his contract law and if you entered into a contract agreeing to payments on a certain time he is legally within his right but he also has to guarantee any correction of defects by law during warranty period or he can be sued, then home warranty takes over. You are dealing with a dishonest developer but you have to let him correct the deficiency and unless you want to wait 6 months for lien to run out (liens are bad and do affect your credit rating for good now, even if it is removed unfortunately). He is the only one that can remove lien, let him do new stairs and be done with him, legally you can hold back min. 10% or more, any money (check your local consumer protection agency for your province-in Alberta it is only 10%) until it is done to your satisfaction. By law you cannot hold money due unless work was not completed, in your case it was done, but wrong, it is now his responsibility under his own warranty on contract to correct it. Do not pay out till he replies with documents showing a lien was removed. Despite other advice you cannot deduct any fees etc. or other monies without taking him to court 1st. Best to get it done and walk away to ease any further stress, it can take a year or more to get things processed legally and not worth it unless again it is done wrong or he does not remove the lien. Contract law lies heavily towards the contractor, even with bonds etc. & unless he outright steals yuor money without providing the work there is nothing nay agencies can really do except mediate. You have to deal with him or sue him, both unpleasant but lesser of 2 evils. Unfortunately you got a very bad developer. Don't let yourself be intimidated, keep all documents and take pictures and demand you want it fixed and give him a time frame and threaten to sue if not done. Then if not done sue him and "now" you can ask for all damages, including repairs, legal fees etc. Hope he gets it done to your satisfaction.

3/14/2022 at 1:53:57 PM

Hmm so legally we owe him even though the stairs were not built to plan or code, we filed a dispute of contract on December 12th, the final invoice was received December 8th, and we gave him 15 days to rectify the deficiency, he denied there was anything wrong, and proceeded to get a lawyer and file a lien. We can't afford litigation, and there was no holdbacks in the contract, so this is the final invoice owing. We owe him 37k, and our quotes to get stairs done are ~30k. His lawyer offered us a 15k settlement for a full and final release, which is ridiculous, so we pushed the town to admit their error and reopen the permits and file the deficiency. If he does come back to fix, it seems ridiculous to pay him legal fees and interest to discharge the lien.

3/19/2022 at 2:10:25 PM

Unfortunately it is not fair, you got a bad contractor and your only choice is to litigate if you will not be helped by him. If you cannot litigate then accepting the $15k is better than nothing & move on with less stress. It works both ways. I have been ripped off by clients and anything under 5k I usually write off, over I usually litigate just on principle. You can also litigate by representing yourself under $60,000 which is much cheaper and rely on the judge to rule in your favor, make sure you have lots of documentation and pics, thats all the courts care about, not how yuo got taken advantage of, he is hoping you give up. good luck