Contractor Breached our Contract

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Posted by: from King City
4/19/2020 at 10:54:04 AM


Seeking some advice.

We hired a contractor to complete our basement. The job was to be 8-10 weeks. The project was at 13 weeks and they completed up to priming walls and tile work done. Tile work was done just prior to COVID-19 on the 14.

I was trying to get an update from them since the 16th and got the runaround. They won't call us and refuse to respond to our calls. Emails and texts. This week we got notice from their lawyer they are terminating the contract.

I have engaged our lawyer but would like to get opinions on what else we can do.

They have a substantial amount on money which was to be used for preordering materials and deposits. We don't want them to finish the job and want to get the appropriate amount back.

They are a good size contractor operating in GTA.

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Date/Time4/20/2020 at 8:18:45 AM

Hi Jacinto,

It's hard to give advice without knowing full details. To walk away from a contract seems fishy and are most likely taking advantage.

However to fully go back to them I would suggest and your lawyer may tell you to get a couple of quotes to finish off the work and from there you can have a counter claim.

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Date/Time4/20/2020 at 1:31:32 PM

Hi, without knowing all the particulars on this contract it's hard to say either way. Since you've already got a lawyer I would recommend sending your contractor a letter / email and try to get this negotiated ASAP so both parties are somewhat happy and you don't have to drag this out to court.

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Date/Time4/20/2020 at 3:07:29 PM

For the contractors lawyers to contact you. Probably means that the company filed for bankruptcy.

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Date/Time5/7/2020 at 8:44:28 PM

As Pat said there is a likelihood that the contractor have file for bankruptcy. Only their lawyer could shed some light.

However due to covid-19, we are entering uncharted territory.. There could be unknown cost that could raise up and other reason that could cause the delay and the issue at hand.

However if they are not bankrupt, you should have you lawyer attempt to get a detail description of fund spend and to return the remaining your money back.

Hope you could find some solution, good luck.

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Jacinto in King City
Date/Time5/8/2020 at 10:32:08 AM

Thanks for your feedback.

We're moving ahead with litigation. Just trying to determine if small claims or Supreme Court.

We sent them 2 legal letters and nothing. They don't care so I'm sure not the first time they've done this.

They have not gone bankrupt. I do know they currently have approximately 20 projects on the go.

We did our due diligence. Contract, scope of work, saw a project, references, they have a location at Improve Centre.

I want to make sure they are accountable for taking advantage of us and especially in this time.

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