Hello! I am writing to get some advice about how to handle a situation with our home renovation contractor.
His work started in May and should have been completed by the end of July (when HE went on vacation). Since July 13, he has returned to the house 3 times. He has not dealt with the deficiencies, finished the ONE remaining kitchen cabinet nor done what is required to close the permit his designer applied for on our behalf.
During the course of the project we had to constantly review and correct his work and several times he had to remove and re-do substandard construction. We took photos and kept records along the way to document this.
Last week was the final straw and we had to let him go when, once again, he came to finish the job but left without doing it. Now he is asking for the 10% holdback.
The renovation started in May and currently, mid October, will not pass final City inspection. Parts of the job are incomplete and we have a list of deficiencies that need to be corrected. He had ample time and opportunity to do this yet instead has continued to do unacceptable, incomplete work.
At this point we need to hire another cabinet maker to correct substandard work and finish the job here.
Can the holdback be put towards what it will cost to hire someone else to finish the job here?
Any advice would be greatly appreciated.
Hi Melissa,
I am really sorry to hear that. To be honest with you, you are not only one in this unfortunate situation. Lots of other families are exactly in the same shoes as you.
To answer to your question regarding 10% holdback.
That holdback is technically for Home owner to hold for 45 days after renovation completion day to make sure all the trades and subcontractors gut paid and no one can register any lean against your property. At the same time you need to finish the job. Please have everything documented and send him an email . Item by item of remaining tasks and give him a time frame to finish it and remind him at least one more time by email. If he will not come and finish the job by that day. You will have no choice to bring another contractor to finish the job and you will minus from ha remaining balance.
Jim is correct. This happens more than you think. We have been on the other side of it with clients not paying.
Like Jim said document it, Send a list and give him a deadline.
Once you know that the trades are paid and there are no leans on the property than you can move forward.
We wish you the best of luck
Daryl
Thank you for the reply Jim.
We fired him last week due to sloppy and incomplete work so emailing to give a chance to complete the project is not an option. Honestly, he has had more than enough time and opportunity.
Is it safe to say we should get quotes from another contractor, get the job done and then if there is any of the 10% left he can have it? We have gone through so much "pain and suffering" with this prolonged job that it doesn't sit well with us to pay this guy at all.
Does this seem reasonable?
I just had to say that I could have written this word for word, except I still owe 30%. My name is even Melissa..it would be funny if it wasn't so depressing. I don't know what to do myself.. :(. The people I hired had a 5 star rating on this site too.
Hi Melissa,
The information above is essentially correct regarding the holdback.
The holdback is just that, a hold back of 10% of the contracted amount to ensure liens are cleared.
A Contractor, any subcontractor, any employee of either, or any supplier that has provided work or materials for your project has a legal right to register a lien against your property if they have not been paid.
Technically, following the first payment or "draw", all parties receiving a payment from you are to provide a sworn or notarized "Statutory Declaration" stating that all sub parties (i.e. subcontractors, employees, etc.) have been paid from the previous draw. This essentially transfers liability to the Contractor if a member of his/her crew or subcontractor show up a month later saying that they never got paid.
If you are at the point of bringing in another Contractor to complete the work you hired him/her to perform, then the contract is incomplete and the holdback is simply part of the contract money you are withholding to complete the work.
If the work that was performed is improper (that is not the same as not perfect, or how you think it should be), then there can be other issues that may require the following Contractor to remove or at least further inspect the previous Contractor's work.
I don't know the scope of your project, but be careful to understand the work that is behind the surface before you make any settlement arrangements with the first Contractor.
Essentially, the Contractor should be paid for work that is correctly done. If it has to be pulled apart and redone, he/she is responsible for those costs.
I hope these responses help somewhat.
Best of luck.
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