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Updated over 3 years ago on . Most recent reply

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Rahel Ketema
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Screwed by contractor

Rahel Ketema
Posted

I am very new to the REI. I bout my first Multi family this in July this year. So currently I am remodeling my unit starting from garden unit for me to live in, as i'm house hacking.

I hired a contractor recommended by my RE agent. This contractor seems really promising so I hired him. I made a mistake and did not make him sign contract. I gave $6K  when demo started for HVAC installation. Demo and HVAC installation took almost >2 months finally. Now the contractor does one thing in 1-2 weeks then disappear. His typical answers when we get frustrated " yes I am coming tomorrow and finish all those" so she shows up and do one thing again. for almost 4 months nothing done, nothing just HVAC install by different compony.  All the demo he did coast probably ~3k the highest. What shall I do. I know I am screwed. And I know he is not going to finish in probably any time soon or maybe none. this is the most heart aching thing I ever encountered.  

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Marcus Auerbach
#3 Buying & Selling Real Estate Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
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Marcus Auerbach
#3 Buying & Selling Real Estate Contributor
  • Investor and Real Estate Agent
  • Milwaukee - Mequon, WI
Replied

@Rahel Ketema - sounds like you are about break even. 3k for demo and 3k for a new HVAC. Like everyone suggested, cut your losses and find a new contractor.

Also make sure the issue is not on your side - sometimes when I get to speak to the contractor I hear the other side of the story. Not saying this is the case here. Get the books from J Scott here from the BP book store and make sure you follow the right steps: a good scope of work, timeline with penalties and payment schedule can help with those issues. 

However: most contractors work hard, they are good people, and against contrary believe they are not getting rich! Remodel is a chaotic process, you have to expect issues and delays, that's normal - don't let one bad guy spoil it for you! This is just part of the learning curve, you'll get it done!

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