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I hired the wrong contractor

wingman011

Member
Joined
Jan 23, 2018
Messages
8
Location
Southeastern, WA
So I made many mistakes that I hope many of you don't make.

I'm in the middle of a painful pole barn build, but it wasn't always like that. I had a dream about 10 years ago to build a shop, I saved for 10 years and took out an equity loan to build my shop. I had a budget of 30k (i know not much) but I wanted to see what I could get done this year. I wanted a 30x40 with 16x10 and 10x10 on the eaves side.

Got some quotes for materials at about 14-16k for the building. I also got 3 or 4 quotes on building the whole thing 38-50k. I came across a company that was building a local shop. He quoted me 20k for the building and concrete. So i told him I wanted rebar in the concrete a couple of windows and a front slab. He quoted me 30k and said it would be easier to build 30x48 for the same price! I know, to good to be true! I was very skeptical.

I spoke to the owner of the shop he was building, and he said, so far so good, good communication. He worked on the shop steadily excavating, setting the posts, setting up trusses. Everything was moving along.

So I decided to give him a shot. I set up a contract that stated he had two months from the day of permit (he was having some issues getting the permit for the last owner) (this was the first mistake) and I even put in the contract a penalty clause if he doesn't finish in time I pay less.

He accepted the terms and I gave him half down! (Second Mistake), a week later I told him I was researching and decided I wanted commercial girts instead of residential. He said if I pay him the the next 1/4 of the money when he finishes framing he'll do the girts free. I said sure if your going to get started soon. He said yup i'll have my crew there in 2 days.

All of a sudden the guy disappears for 5 months, answered calls and text a few times just to say he'll be here next week, next week, next week...... Contract says from day of permit...****............................................

Finally comes back 5 months later and starts the build with no permit. Inspector comes onsite and red tags the build and now he can't work! ugh. :mad:

Finally gets the permit 2 weeks later. Starts building....takes 2 weeks for framing but does a decent job.

Now he wants 1/4 more. I said no, and he blew up, talkin about tearing down the commercial girts and now he has to go make money somewhere else to finish my shop...blah blah. I said, if I see progress on the concrete I'll give you 1/4 more. He agreed.

Concrete guys show up next week, he shows up to finish final framing literally 6am they were gonna pour concrete at 6:30am. Gets it done and I hand him a check for the next 1/4. They start pouring cement, contractor takes off. Cement folks come talk to me about payment...apparently in WA state owner is liable for payment if contractor doesn't pay. In fact they can put a LIEN on my house if I don't pay them. Contractor was supposed to have payed before he left. I said "YOU SHOULD HAVE TOLD HIM THAT BEFORE HE LEFT!" Call contractor, of course he says i'll be there in couple hours. Didn't show up all day.

So now I have framing and concrete and I'm in it $22,500....haven't seen the contractor in 3 weeks....

Lessons Learned
1. Put a start and finish date with penalty clause in contract
2. Make sure you cover your **** with language so they can't lien your property.
3. I would pay for my own materials, and just hire the labor. OR go with a very reputable company (which will cost you $$$)
4. If it's to good to be true...then it is.

Many of these are rookie mistakes. If I ever have a chance to do something like this again I would do things differently. Any advice would be appreciated.
 
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wake74

Well-known member
Joined
Nov 14, 2015
Messages
372
Location
NC
Sorry for the situation. That really *****. In regards to contract terminology, I am not aware of any language that would supersede the laws allowing a contractor to lean your property. If a contractor or a subcontractor does physical work on your property (or supplies material) and they are not paid, they have every right to lien your property. It matters not if they are the prime or the sub.

Now, there are contractual ways to mitigate that risk, such as requiring lien waivers prior to payment, including lien waivers from any subs that worked on your project. In my experience, this is the typical way we handle this issue on industrial projects. No lien waiver, no payment.

Unfortunately you are on the hook for the concrete cost. I wouldn’t allow the prime contractor back on the site. Sounds like it may be time to take your loss and move on. The legal costs to hire a lawyer to go after the prime, may very well exceed whatever money you might be owed. I would definitely file a complaint with the general contractor board, assuming he holds a GC license.

Not to sound alarming, but be aware if your contractor doesn’t pay for the material used on the job to date, you will likely get bills and or lien notices for that as well.

Best of luck



Sent from my iPhone using Tapatalk
 
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rjn2649

Well-known member
Joined
Mar 4, 2018
Messages
872
Location
Il, A little west of Chicago
That ***** big time. One thing I would say START TAKING LEGAL ACTION, call the state call the police, hell.., call his Mama report this to anyone that will listen.
Too many times I've heard of people getting ripped and then just wringing their hands and saying "what can I do?"
Make his life as miserable as legally possible...
Hope it works out for you in the end.
 

Jazzman442

Well-known member
Joined
Sep 17, 2013
Messages
553
Location
Tampa Bay area, FL
I live in Florida and decided to build my own house because of what just went through. I found out that the best Contractors I did not have to pay not one penny up front. I do this all of the time now. I paid one sub some money when I built my house and they did the same thing. Not any more. No one gets anything up front. If they need material I go and get it my self. Problem solved. Good Luck there are so many people trying to take advantage of other people. Good Luck. Finish your dream.
 

ezover

Well-known member
Joined
Jan 15, 2008
Messages
2,412
Location
3rd rock from the sun
sadly I know of a person like this, would start a job get money and move on to the next one. this was some 15 years ago, tv news show finally caught up with him.


not sure how the court case ever worked out but he had hustled some 200k from people.
as far as I know he has never had a real job since then, ever thing he has worked has been cash under the table type deals.
 
OP
W

wingman011

Member
Joined
Jan 23, 2018
Messages
8
Location
Southeastern, WA
Wake74 you are correct, I found out.

RJN2649 I can't take legal action since no law has been broken yet. Other than call his mom, maybe i'll do that....

Thanks to all who commented. Just knowing someone is listening/reading is helpful.
 

jd_1138

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Joined
May 8, 2013
Messages
17,043
Location
NE Ohio
Wow, sorry to hear that OP. I hope it works out for you. His cash flow problems are not your problem. He ought to have funds in his account to pay his bills, truck payment, food, etc. without even needing your money until the job is done. Small periodic payments is all he should be getting as progress is made. He can't manage his money.

My mom had a bunch of work done at her house. She paid 20 percent up front, then periodic 20% payments. Final payment when done.
 

JoeMcGov

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Joined
Sep 8, 2018
Messages
827
Location
Birmingham, Alabama
Scumbag contractor. Like many other aspects of life.

It's a tough lesson to learn. There isn't any "lien" avenue to pursue. You'd be putting a legal contingency on the sale of your own property.

You'll need to sue him. Or small claims court. But as a commercial building contractor for 32 years I can tell you that the interpretation of a construction contract (you did say that you have a fully executed contract. Right?) can be lengthy and time consuming. So much better to spend that time in the interview and hiring process.

Good luck.
 

LB-1911

ALLIANCE MEMBER
Joined
Sep 24, 2011
Messages
5,742
Location
Northwestern Il.
Wake74 you are correct, I found out.

RJN2649 I can't take legal action since no law has been broken yet. Other than call his mom, maybe i'll do that....

Thanks to all who commented. Just knowing someone is listening/reading is helpful.

Are you in possession of a disclosure statement?
http://app.leg.wa.gov/rcw/default.aspx?cite=18.27.114

Get the ball rolling - Plenty of useful information / guidance at the previously provided link.
 
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OP
W

wingman011

Member
Joined
Jan 23, 2018
Messages
8
Location
Southeastern, WA
Are you in possession of a disclosure statement?
http://app.leg.wa.gov/rcw/default.aspx?cite=18.27.114

Get the ball rolling - Plenty of useful information / guidance at the previously provided link.

I haven't gotten a disclosure statement from anyone. So, maybe i'm not on the hook?

I know there is much guidance, but i'm very green when it comes to this legal stuff. Thanks for the link!
 

b-boy

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Joined
Oct 2, 2013
Messages
2,155
Location
Buffalo NY
I've been there. It *****.

Hire a lawyer and trash this guy whenever possible (bbb.org, online forums, Agnie's List, etc).

There are way too many of these bottom feeder out there. they mis-quote a job and suddenly it's you're fault they're not making money. Then they vanish.

Unfortunately they usually get away with it.

Here's the idiot I had to deal with: https://www.bbb.org/us/ny/williamsv.../tonys-independent-contracting-0041-235964802
 

HoosierMark

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Joined
Jan 31, 2013
Messages
1,440
Location
Southeast IN
In Indiana if you have a situation like this you must give the contract time to correct any issues prior to hiring someone else or similar action. One local guy had an issue, had the city building inspectors in to confirm and then hired a new builder and sued the old one. The old one countersued and won on the basis that by law he had the right to correct his many mistakes. It was quite embarrassing for the local attorney. Point is beware of your rights and his and then go after him!
 

kwb

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Joined
May 1, 2009
Messages
1,770
Location
PNW
You have framing and concrete for $22K in the state of WA. You aren't doing too bad even if you never see the guy again.
 

Deanomyte

Member
Joined
Sep 25, 2018
Messages
22
Location
Below sea level
Contracts are an important and necessary evil when it comes to building. Make sure you document everything!! All contacts and all verbal communication. If u can record it m, do it. Just know that if a contractor is in the business of doing this to people then he probably doesn’t own anything for you to lien. Then you will be spending good money on an attorney for no beneficially outcome.
Just practical advise as I have been burned very recently on a handshake deal.... People just ain’t what they used to be.
 
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meboatermike

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Joined
Dec 28, 2014
Messages
104
Location
Southern Maine
Sorry to hear of your issue. I knew better then to pay before work was finished being performed -- was in Govt. loans for 40 plus years and we only paid on contracts by a % as work was done, in the end a contractor was still owed about 50% when they had finished 100%. BUT even with that knowledge I managed to pay a guy for tree work just before Christmas 2 years ago when he still had two trees to finish -- well guess what -- I am still waiting on those two trees and he keeps saying he will come back whenever I see him but....seriously question that it will ever happen.

I just need to bite the bullet and hire someone else :( I know I know I will be the first to admit that I knew better :lol_hitti
 

Mikeske

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Joined
Apr 28, 2017
Messages
2,125
Location
Washington State
I live also in Washington state and that is a shady contractor. 9 years ago I had a pole barn quote for 25K. I signed off and paid $2,000 down and the balance at completion. Job went off without a hitch and the building was completed in the time frame of the contract.

Upon completion the contractor presented his final bill for the building and the 2 change notices I wanted and it was still within reason. I paid for the final bill and got lien releases from the concrete, materials and contractor a week later after the certified check cleared.
 
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kwb

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May 1, 2009
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PNW
Nine years ago construction was doing everything that they could to keep the best guys on board. Now a pulse, driver's license and showing up most of the time will keep you employed.
 

ard

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Joined
Feb 16, 2015
Messages
4,391
Location
Sierra Foothills... California
I can't take legal action since no law has been broken yet. Other than call his mom, maybe i'll do that....

Say what?

Maybe google the definition of 'legal action'?

In fact if a law was broken YOU cannot take action, only the police or DA can take legal action for broken laws. (in general)

But you can take 'legal action' when someone has broken an agreement, or caused you to lose money. Even if it isnt a violation of law.

Dont trust yourself on this stuff. Preconceived ideas about how the legal system works, Im gonna get screwed by lawyers; its too expensive; I'll just pay and move on... get second opinions.

Hope you get it all on track....
 

801cdw

Member
Joined
Feb 13, 2012
Messages
8
Location
Salt Lake City
I had a bad experience in the end with the Contractor I worked beside for the 1.5 years of home addition construction. I tolerated a lot of things just wanting to make it to the end of the project. He made it to the final week, then said he had to go see his FIL with his wife. My move in date had been set a month in advance.
I know there are some good Contractors out there, I hope You find them.
 

jd_1138

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May 8, 2013
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17,043
Location
NE Ohio
I had a bad experience in the end with the Contractor I worked beside for the 1.5 years of home addition construction. I tolerated a lot of things just wanting to make it to the end of the project. He made it to the final week, then said he had to go see his FIL with his wife. My move in date had been set a month in advance.
I know there are some good Contractors out there, I hope You find them.

Yeah sadly with some of these dudes, being nice is seen as being "soft", "floor mat", I don't get it. No wonder some people act like ruthless a-holes with their contractors, holding their feet to the fire, etc..

My mother hired a contractor to do $50,000 of work at her house, and then my sister set up for the same crew to do work at sister's house. Boss contractor didn't bother to tell his crew that the new customer was the daughter of the previous customer. So when my sister overheard them talk s--t about my mother (an angelic woman who bent over backwards to be nice to them) and make crude jokes about her, my sister promptly fired them and through them off her property. Then she trashed them on all the review sites and Facebook.
 

Augus7us

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Jan 14, 2017
Messages
1,190
Location
Central Ohio
Call an attorney. The law works in mysterious ways. What you and I think may be fine could be a serious violation.

A court summons brings people to the table real fast. I took a large national company to small claims court after they blew me off. I was barely 20 at the time and figured I was screwed. I won a judgement against them and they were kissing my *** the minute I left the court room. You would be surprised the affect a lawsuit can have on a business.
 

SALIV8

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Joined
Dec 11, 2008
Messages
2,114
Location
chicago and s/w michigan
Contractors don't like this and you will be hearing from him again, as I have in my case, I can only assume...

Contact your state attorney general and fill out the forms that are available, usually online, regarding getting ripped off from this contractor.

I've done that and had one owner call and threaten me, and say he was gonna come to my place to fight. Lol. I was actually off the next day so I said come on by. I was lit at this point. He never showed up (that was best for both of us) but it left a lasting impression.

These scammers don't like having a permanent record with the states attorney general.
 

Mikeske

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Joined
Apr 28, 2017
Messages
2,125
Location
Washington State
Nine years ago construction was doing everything that they could to keep the best guys on board. Now a pulse, driver's license and showing up most of the time will keep you employed.
AHH I had the same contractor back after he did the pole building to install a new metal roof on my home build a carport and covered porch/deck awnings down front and back of my home and finish a steel pole building that was only partially completed and have had him back just last year. Never a problem for him to tackle any job and a great contractor to hire. He is true professional and his family owned business has been building pole buildings in our area since the early 1970's. Needless to say the majority of the pole buildings in this area was built by this contractor.
 

johnnyradiant

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Joined
Mar 27, 2017
Messages
833
Location
Vancouver, BC
Nine years ago construction was doing everything that they could to keep the best guys on board. Now a pulse, driver's license and showing up most of the time will keep you employed.

A drivers license?
You guys are a tough crowd, and just what is your definition of showing up? Is noon ok most days?
 

Casey69

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Joined
Mar 15, 2011
Messages
798
Location
Earth

i'd start with this & (like others have said) contact the BBB, Yelp, Angie's List, your neighborhood/Nextdoor website, etc. it's pretty easy to put a lot of info online now & at least warn others.

but your situation isn't unusual at all. contractors are in the only industry where not showing up &/or completing work is almost normal.
 

wake74

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Joined
Nov 14, 2015
Messages
372
Location
NC
Thank you all for your comments. I am going to see an attorney soon.

My personal opinion would be to go see an attorney first, before doing the full out public humiliation thing on social media. Your attorney is likely going to tell you to with-hold that for now, as that is a piece of leverage that he/she will be able to use. Once you play that card, you've played it.

Any settlement you receive will likely include a non-disparagement clause. Call it hush money, or whatever. No reason to pay you hush money, if you've already gone full out social media blitz. It's not like you can take it back after you've played that card.
 

minytrker

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Joined
Sep 19, 2012
Messages
1,376
Location
Brenham TX
When I fired my contractor and did not pay him his last bill ($2500) since the work was not complete and the punch list wasnt done. He called all the sub-contractors (that I fired also) and told them I had not been paying him so he couldnt pay them. I had a plumber calling me saying I owed them $3k. I sent them a copy of the paid invoice that listed plumbing as paid. Also explained that the bill I didnt pay was $2500 and there was no plumbing on it. They said my warranty was cancelled for non-payment, they werent understanding the part I fired them weeks prior and the GC was screwing them.

After dealing with shady contractors and all there BS I have made myself learn electrical, plumbing to fix there screwups. I really want to add on 2 more bathrooms and some other projects but contractors are the reason I put it off.
 

matt_i

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Joined
Mar 14, 2008
Messages
10,725
Location
SE Michigan
I thought I saw it mentioned earlier. If your state has builder's/contractor's licensing, that is the one most powerful tool that a homeowner has (for the money invested)

Research the process of filing a fomalized complaint with the state's licensing office and follow everything to the letter of the law, keep copies, notes of calls, emails, certified mail, etc.

It could go to binding arbitration but there will be a 3rd party that helps settle the dispute.
The bottom line is if the builder doesn't get back in line with the agreed terms, then that person is on a process to lose their license. Which means no more pulling permits, no more managing projects, its back to being a tradesperson.
 

blkhonda1991

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Joined
May 20, 2008
Messages
608
Location
Connecticut
bad situation, move on to the next contractor if any contractor asks for more than a very small percentage down to do the work...advanced payment just means hes using your money to fund another job. Any reputable contractor has credit with suppliers and if they dont they bill for material and labor as they go not up front...there is almost no reason to ever pay anything up front.
 
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Soup

Member
Joined
Oct 3, 2018
Messages
12
Location
Houston
Today is day 347 since permits were issued on a 3 month build.

476 days since contract signed.

Maybe done on Tuesday next week.
 
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