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Problem with Contractor - 2 year invoice

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Posted by: from Toronto
2/23/2018 at 11:46:54 AM

I'm having a problem with my contractor. He sent me an invoice 2 years after work was completed for $66000. He says we owe 12% commision on his work. I signed a basic contract agreeing to this but all payments are to be paid as work was completed. For example: we built a new home so when framing was done we paid, when brick was done we paid. We had a quote from him that imcluded material work taxes amd commision. The total pricewas $471700. but included everything. We paid over $500000 in cash to him we he signed a paper everytime he received cash payment. It was dated, indicated that it was paid to his compamy and for what work was done, how much was paid im cash amd we had him sign all the times. We all agreeded to pay as we go because of all the horror stories you hear amd he agreed. He never had to wait for money but then 2 years later senda an invoice for $ 66000 incl tax. We called him and now denies anything and says I signed the contract. I agree with him however it was paid as we went along. This invoice came may 2017 now he threatened to take us to court and we said go ahead. A month has passed and he now sends an second invoice fo $86000 for interest of 3% accumulated. What can I do? He is harrassing and threatening us but does not take us to court.

REPLIES (3)
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Date/Time2/23/2018 at 7:09:11 PM

Check with a lawyer and he doesnt want to go to court because thats not even a legal rate of interest to charge. Not 100% sure but I believe its around 24% annually. Over 30%+/- (Not a lawyer) is considered loan sharking and is controlled by courts. So first ignore the interest scare. Secondly ignore the invoice. Contact a lawyer and explain the situation but the contractor is past his right to lien so he really has nothing other than harassment and after a point that is something the police will visit him on. Relax first, Sorry to hear this happened it gives us all a bad name and talk to a lawyer it sucks to have to pay anything out but a $500.00 sit down with a lawyer and draft a letter to him is going to make you sleep better at night.

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Elizabeth in Toronto
Date/Time2/23/2018 at 9:11:25 PM

Thank you for your reply. I want to make it clear that i know that not all contractors are bad. Construction went well and us paying after each step not only protected us but him as well. I just dont understand why he is trying to double dip. The contractor knows my husband is the weakest link and when i called his bluff to take us to court he was willing to negotiate and take any amount. I am stronger and asked for receipts and his response is i do not have any. I have all documented entries of all payments made to him and he signed everytime that he received payment. Furthermore, he is also basing the value of my house has increased in two years so to contruct the house has gone up. This is irrelevant. I know he is trying to intimidate us but i have to be strong amd ignore him.

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Date/Time2/27/2018 at 2:46:53 PM

Your absolutely right this is actually the worst case I have heard of. House value going up has nothing to do with his work. Stay strong haha and all the best!

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