What am I allowed to consider as substantial completion?
10/17/2017 at 9:25:51 PM
I'm currently in the process of wrapping up a renovation job with a team that's been in my house since July. Numerous tasks are slowly being tackled as I come down hard on expectations; however many jobs were done quite poorly with a few remaining outstanding, which will likely cost me extra to have completed by other people.
I was wondering what my rights are in terms of seeking 'completion' I'll call it? No prep work was done throughout the house prior to painting so upon my return with my kids after staying away for the summer, and seeing that mess, I insisted on prep work being completed. This entailed sanding baseboards in really rough condition with bumps and flaking paint (I live in a 150 year old house), fixing plaster that was ignored and sometimes just spackled over instead of being properly fixed with washers, glue, etc. (so cracks reappear quite quickly), and spackle that was painted over and not sanded. In addition to this sloppy approach, paint drip marks are seen on various surfaces, there is missing/damaged grout by a tub that wasn't fixed, then the wrong colour silicone was applied overtop (which I had to remove), a ceiling vent not properly venting out (just in a wall cavity), shower/tub faucets not properly sealed to prevent water from getting behind and finally, in my kitchen, having mismatched white cabinets as the doors were lacquered and the built in sections have latex paint - not sprayed, but rather, applied with a roller and brush. The 'painted' built in surfaces show bumps from the roller texture and are slightly rough.
Today the general contractor painted the sections I complained about in the kitchen with an exterior latex paint (can't figure that one out). While the dings and chips were finally filled in from the poor paint job that was done previously, it still doesn't match in texture or colour to the lacquered doors and drawers.
I'm already out of pocket paying partially (the general contractor is paying $600 and the rest is on me) for my dining room walls to be skim coated after my husband and I had to take matters into our own hands and fix the damaged plaster ourselves (even though that saved him hundreds of dollars). Fixing plaster was part of the signed contract and I paid an exorbitant fee for painting as the condition was that this was part of the process, yet only a few rooms had the plaster fixed and now I'm sensing it actually wasn't fixed so the cracks will come back soon.
I'm facing extra fees to fix the plaster in an upstairs bathroom as well and it looks as though I need to hire a professional to paint my kitchen built in cabinet pieces. Any other jobs that aren't completed may also fall on me. I also have to fix water damage in the ceiling due to demolition dust clogging up my attic AC and causing it to pour water out all over the attic floor which seeped through to the second floor in our house. The GC refuses to take any responsibility for this and since it's a 'grey area' and hard to prove I'm just eating the cost.
Am I entitled to use the 10% for substantial completion to fix everything after his departure or by law is the work he's done, while not even close to perfect, considered completed?
Thanks!
10/18/2017 at 10:18:48 AM
Hi,
Yes you can keep the 10% for finish your project. Close the contract with the contractor.
10/18/2017 at 10:40:35 AM
I would give him notice in writing that you wish to terminate the contract for reasons you cited here, and not pay him anything else.
Hire someone else to correct all the deficiencies and use your holdback to set things right.
For the difference in cost you will have to sue him.
Quite often people hire the best price not the best contractor. This could leave you without any recourse for shoddy work.
I hope that is not this case and wish you the best of luck in recouping all your losses.
10/18/2017 at 10:52:54 AM
Hi Melissa,
My name is Ryan Carwardine i'm the CEO of Clean habits we see this way to often it' so frustrating to see clients having to deal with this. Were so sorry you and your husband have had to go through this.
Yes I would keep the 10% and close out the Contract with your Contractor.
I would personally like to come out with my team and take a look at any work that you would like done and fixed within your budget.
Once again i'm so sorry you guys have had to go through this there is no excuse for this.
Sincerely,
Ryan Carwardine
CEO
Clean habits
10/18/2017 at 1:25:46 PM
Thank you everyone for your extremely valuable advice. It helps a lot. I had a discussion with my husband and he pointed out an important fact. We have thousands of dollars of work still remaining and the subcontractors who aren't at fault in anyway need to be paid as well. I was speaking to the painter and he hasn't been paid in a long time. He's owed quite a lot actually so I'm concerned that this general contractor is going to take flight with the money he has to date and not pay people what they deserve. The HVAC guy still has substantial work to do hooking up an in floor heating system to our boiler, as well as installing a new attic AC and insulation. The AC and insulation thankfully is a side cost but the floor is not. I'm only withholding just under $8000 if I cancel the contract but the poor subcontractors are owed a lot so that's also deducted from that cost. I'm afraid I have to drag this on for as long as possible until I find out they've at least received something.
Here's where part two to my question comes in. I still owe 30% in total. 10% is for substantial completion, 10% is for the remainder of plumbing work and 10% for painting. If I withhold this and pay the subcontractors directly what they're owed to finish the work (and work that has long since been completed), then hire contractors to finish what our general contractor has failed to complete or did poorly and needs to be redone, can this be deducted from the remaining 30%, and anything that remains goes to the general contractor? This way I'm not out of pocket and the only penalty is on the person who deserves it. The rest of us should not have to pay for his incompetency. I'm wondering if a court of law would see this as a reasonable solution...
Once this fiasco is sorted out, I will certainly have someone new come by. Thank you for the kind offer!
10/18/2017 at 2:53:52 PM
Oh boy, for some reason I completely overlooked seeing if the GC was licensed and he's not. TrustedPros even lists all of that information under the company profile. I was hooked by the great reviews and positive impression he made. That makes me more vulnerable so I suspect my only option is to hold the 30% and pay subcontractors directly...I don't see any other option...
10/19/2017 at 3:55:24 PM
I feel for your pain, but I think legally there are a few things to consider...
The term Substantial Completion generally refers to the amount of work completed to code compliance or based on milestone decisions such as framing completed, drywall installed (primed and painted), etc. Generally, unless there is a specific clause(s) in the contract, there is no such thing as a holdback for quality of work except to be in code compliance.
An additional item is that whether or not the sub-trades get paid; this is not your concern. You made a contract with the GC and not the sub-trades. While nobody wants to see the sub-trades getting screwed (trust me it happens all the time), it has nothing to do with you. Unfortunately you will get dragged into the mess as each trade will Lien your house but the GC walks away scot-free (usually). While you still pay the individual trades (because it is the right thing to do), the GC can still demand his money and accuse you of breaking the contract because you negotiated outside the terms of the existing contract for the same work. So how it works is you break the contract, the GC and sub-trades will lien your house, you go to court for a decision (which perhaps you will win). Maybe the lien(s) will be removed by the court; once that is settled that is when you can go now and re-contract the work to other trades or another GC.
This all sucks, and this is why people get screwed constantly. There could be a number of reasons why this situation arises; I recommend you talk to the GC and see what is going on. As a sub-contractor I unfortunately see this frequently... it is never pretty and never inexpensive; and the client is the one who usually gets it in the end no matter what. The only time I don't have sympathy for the client is when they hire trunk slammers and not professional trades and reputable GCs. Not saying you did not do your due diligence... but typically this is how it all happens; red flags right at the first interview.
Cheers
John Kuehnl-Cadwell
Master Electrician
Datawise Solutions Inc
10/19/2017 at 8:55:56 PM
Thank you John for this invaluable advice. I greatly appreciate it. For now I'll just trust that his relationship with his sub contractors is far more valuable then padding his pockets and they'll be paid fair and square.
On a side note, I find it astonishing how general contractors don't just finish the work they've been assigned to do, and correctly for that matter (it's so easy to do!!), as it's the cheapest solution for all involved. While perhaps he may have misquoted on some of the jobs which is why he's walked away, assuming that he's 'cutting his losses before they become larger', it's a foolish way of thinking as legal battles are very costly and a lasting negative experience with a customer will destroy a business, especially in the trades. No customer in their right might will idly sit back and allow their money to be taken for substandard work, or no work at all for that matter. Especially if they know they have to spend extra to remedy the situation. There are severe consequences to such ignorant actions. Unfortunately there's no win for anyone when it gets that far along.
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