Contractor Can't Complete Job but Wants More Money
4/11/2018 at 2:57:39 PM
Had issues with current contractor and had to end work with him. Found a great replacement here on Trusted Pro's, but still have issues with old contractor. Purchased a condo and wanted it renovated. As per condo rules, require a licensed contractor with insurance. He said he had it all and we got started. Signed a paper that says total amount of project, payment schedule, deposit amount (30% deposit). The deal was to pay cash and not pay tax (I know. this is not good and mistake). After one week of work, condo board wanted to see the license and insurance. The insurance certificate provided was for Company A who we agreed to work with. He didn't have the license to show at this time. Condo board came in and said until the license is shown, we can't continue work. Fine. Next day contractor brought in a photocopy of a license. It was a valid license (I confirmed with the city) however, the person on the license was not the man we are working with and the name of the company is a different company name. He says he owns both companies and the man on the license is a relative. Condo board wanted the insurance certificate of the licensed person and company. He provided a policy number, but not a certificate. I have never met the man on the license or seen him. Too many questions that can't be answered and condo board will not allow us to continue work with him. We found a great company here on trusted pro's to help us out. all licensing, insurance, plans, etc... check out. Now the original contractor says he is owed more money. The condo is a mess. no floors, no bathrooms, no doors, no kitchen, no lights. just drywall and he didn't even complete all that. still some outstanding work there. We have a 30% deposit and made an additional payment of 12% on top of that. 42% paid, we have a shell of a condo and he wants more money. I think he owes us money back. What are our options here? I'm willing to take the hit and move on although I feel he owes me money. He wants more money from me. Can he legally get more money out of me?
4/11/2018 at 5:17:00 PM
Hello there.
That's a tough situation for sure. I think it would be prudent to quantify the first contractors progress and take dated photos.
Your entitled to a complete accounting of his costs to date and if you and the contractor can't agree on what is fair compensation then you may have to take the usual course of dispute resolution through the courts.
Hopefully you'll find some common ground without having to do that.
Good luck.
Giulian
4/11/2018 at 5:32:13 PM
I realize you were trying to keep your no doubt complex story short/simple; the description is good however some pertinent facts seem missing.
When you made the cash payments did you receive a receipt? Here in Alberta you need to have licensing and bonding as a 'prepaid contractor' to be allowed to do so. Safe to assume your contractor does not have this in his name - breaking the law day 1.
To determine a value for the work you could obtain estimates from 2 or 3 reputable licensed contractors; however there is some potential for bias.
If he cannot satisfy the City or Condo Board requirements for certification that also needs to be taken into account (then perhaps only the materials supplied have value).
If mechanical or electrical alterations were made by non-approved subs and then concealed without being inspected that could be a problem too.
4/11/2018 at 5:36:28 PM
Hello , Carl here & this is why i All ways have a escrow account setup, for any projects over $5,000. At this time, I would take the money's that the original contractor wants. Amd go to a lawyer ! And anytime in the future escrow account!that way everyone jas to sign & agree that draw on each section is completed & satisfied then u as client& those as contractor can go into project with confidence ! Expensive lesson are well learnt? & last point, would like to make, if u are finding a permanent contractor like most property/home owners U should ask in advance if their company farm's or sub-contract the work out ??? & if they are a 24 hrs service, that will let u no if the company cares about your business or not !!! & remember, U treat contractor's like doctor, lawyer and all the other professionals ! Once u get a good one u don't let them go. Thanks Carl & good luck
4/11/2018 at 6:13:00 PM
No. Do not pay him any more money. You have the right to take the balance to pay the other contractor to finish the job. If it costs more than original estimate you can go after him for the difference if he continue to harass you. The only amount you may owe is costs for materials that have been delivered but he needs to provide proof of purchase with your condo address on receipts.
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