Final Payment of a Contractor

2/26/2019 at 9:28:02 AM

This is a tricky one. Did the contract reads that it must be done by a certain date? And if it was not done by that day is there anything that says that money was to be taken off for retribution ( rent loss, money borrow)? And has there been a final called for?? Usually minor roof work work does not prevent you from getting final occupancy. So a call to the city might be all you need. Is the permit in your name or the contractor. It really doesn't matter who's name it's in as long as you have the permit number you can call for an inspection. The 10% hold back is not use for loss of what could have been rent or cost of borrowing it's for the purpose of the lean act in Canada. So if the contractor wasn't paying his bills or suppliers they could then lean the house and it would come out of the 10% that you are hold back. You hold this money for 45 days after the last day they where on site. In your case this will start when the roof is completed. If it's not in the contract for loss of rent or borrow cost and you feel you want to get that money back you can always sue then after for the money. But as if it's not in contract for completion and loss of income you could be in breach of contract and the company can then but a lean on your house or take you to court. In which case they have a very good chance of winning unless you have documents that state different. Just my to cents and thing I have seen in the past.

Andrew Murray

Lanark Management

President

2/26/2019 at 10:31:39 AM

Without knowing all the details, I believe the contractor has no obligation other than to finish the project as stipulated in the contract. Any loss of "potential" income is not under his/her control and seems to be the result of weather and other factors. Your rental agreement should not be started until the project is complete and approved.

2/26/2019 at 2:03:01 PM

$11000 is more than 10% of the contract to build? If you built a house for ~100k you're very lucky.

There are quite a few details missing but the main point is that the house can have a lien put on it and you still need occupancy.

If the municipality is holding out because of real deficiencies (sometimes they are trivial) then I would negotiate.

If you don't want to pay 10% perhaps negotiate 5-8% considering the circumstances. In business its always better to meet halfway and split a loss than for everyone to go further in the red.

Good Luck

-NVB

2/26/2019 at 8:08:44 PM

Hi Frank

If everything was done exactly as described

in the contract/Estimate and a Date was specified you would probably have a case.

Now If there were any changes After the start date or when the contract was signed or if any major unforeseen problems occurred. This adds time to a contract and unfortunately beyond any ones control and voids the actual

completion date.

3/29/2019 at 11:20:49 PM

If loss of rent / mortgage payment "reimbursement" were conditions in the contract, then they owe it to you. If not, they are not obligated to pay these funds.

Late penalties should have been a condition in the contract as well.

Holding back 10% for a specified period of time (sometimes 3-6 months on a new build) is standard / protocol in most provinces.

Best of luck....