Rookie Mistake. PLEASE HELP
Hi,
Not sure where I should post this question. I have a property in La Marque, TX that I purchased for $65K with a $55K rehab draw. I met a general contractor working on a home close to my house. I asked him to check the property out and give me an estimate. The house required new flooring, new exterior siding, new windows, new cabinets, new siding, new plumbing, and new electrical. (All entry level upgrades.) The house is just under 1,000 sq ft. The material costs were ~$17K. The contractor originally quoted me on the phone $48K and 4 weeks. I asked 3 times for a contract. He started the job without giving me a contract. Two days into the job he said the job would end up being $53K because 80% of the exterior studs needed to be replaced (100 2x4x8s). I told him I would pay $55K because he was giving me a good deal but told him I needed a contract signed by both of us. Long story short, I've paid him $51K three weeks in and still no contract. Then he stops working because he was waiting on the engineering drawings to be completed. That's when I realized he didn't pull permits with the city after telling me he had taken care of the permits. The city shutdown the job. Now the contractor is telling me that the actual cost for project is $117K. He complained about not making any money off the job during the three weeks his crew was working, and I told him from the beginning that I only had $55K. Now he says he isn't going to do what's required to get the permits and he is putting a lien on the property if I don't pay him an additional $40K on top of the $51K I already paid to date. I know this is my fault for not getting a signed contract. What are my options, if any? Note that he will not give a me a materials list or cost of materials. I knew where he bought the windows, flooring, baseboards, doors, etc. which made it easy to get the costs. For the building materials i counted every 2x4, 2x6, 2x8, 2x10, sheet of plywood, hurricane straps, etc. and added 20% to get the cost. His crew walked out on him because he didn't pay them. They told me exactly what he paid them weekly. I summed everything up for the work completed, materials, and labor rate and adding 20% profit, which totaled $41K. PLEASE HELP ME
Hi there,
I'm really sorry to hear about the challenges you're facing with your contractor. It sounds like a tough situation, and I'll do my best to help in a simple way.
Firstly, it's important to know that you're not alone in facing issues like this. Here are some steps you might consider:
1. Seek Legal Advice
Reach out to a lawyer who can guide you through the specific laws in your area. They can help you understand your rights and figure out the best course of action.
2. Documentation is Key
Gather all the communication you've had with the contractor, records of payments, and any information about the work done. This will be crucial if legal action is needed. Looks like you've done this already.
3. Negotiate and Clarify
Try talking to the contractor calmly. Ask for a clear breakdown of costs and details about the extra expenses. Explain your budget constraints and see if there's room for negotiation.
4. City Permits
Find out what needs to be done to address the permit issue. This is crucial for the project to move forward and for your property to remain safe and legal.
5. Protect Your Property
If there's a threat of a lien, you should act quickly. Consult with your lawyer on how to protect your property and navigate the situation.
Remember, it's okay to ask for help, and seeking legal advice will provide you with the best steps moving forward. Hopefully someone else can add to this too.
Wishing you the best in resolving this issue.
Kind regards,
Carlos
I appreciate the advice. I'm working on all except #3. I actually offered to pay the contractor $67K after realizing he had no intention of working to resolve the permit issue. He agreed to $67K. A week later I asked him the status of the engineering / permitting and I told him I needed an invoice showing the total cost at $67K and what I had paid to date. That's when he said I owed him 117K. He finally sent a basic break down of the costs. He's charging me over $15K for demo! We filled up one roll off pan. He's charging me $10K to prep the floors and install 900 sq ft of .99 laminate flooring.
Thanks, Mike
Find his other job sites and go talk to the homeowners, if he is doing it to you he is doing it to others, scammers be scammin.
strength in numbers, get the homeowners together and see what you can do.
other than that you are stuck to the legal system which you will spend 20-30k to get paid by him and he knows it, your first time and his operation procedure= no bueno .