Rental Property Investor · Pittsburgh, PA · Member since 2015 · 712 posts · 173 votes
So my contractor is complaining about how hes not making any money and completely under bid the job. I bought the house based on his bid then i even helped him out and raised it another $8,000. Then again saying hes not making anything and had to borrow money from hos brother which is anotwr contractor and there working together. No hes saying all his bids are gonna go up tremendously. Im really feeling hes not gonna hold up his end and be able to complete the job with the funds left and draws. Very frustrating because he told me before i bought it the price and now saying was a estimate then i went back higher and coming to me complaining bascially. What to do?
Do you have a contract that states the work to be done, materials to be used, price to be paid, etc? How much is the total cost if you jumped it $8k and he's still not happy or making money? Either way, sorry, your under bid is not my problem. It is a learning experience that he is now paying for. I have under bid many jobs and never had the audacity to think that was someone else's fault or problem. You suck it up, do the work and try to do better next time like a responsible adult
@Joshua D. be very careful at this point. I would hesitate to give him any more money. I would hope he did enough work to warrant the money you have already given him. I would really look for another contractor and maybe get their opinion. maybe their prices are just as high or higher. What sucks is you made your buying decision based off your contractors quote. Now that puts you in a pickle.
Do you have a contract that states the work to be done, materials to be used, price to be paid, etc? How much is the total cost if you jumped it $8k and he's still not happy or making money? Either way, sorry, your under bid is not my problem. It is a learning experience that he is now paying for. I have under bid many jobs and never had the audacity to think that was someone else's fault or problem. You suck it up, do the work and try to do better next time like a responsible adult
@Bryan Devitt yes all that is in the contract. And exactly he was acting like partly my fault. He said i blame myself and my brother the other contractor 3/4 of the problem and i stopped him right away and said how in any way is this fault? He said fine ill take all the responsibility i dont care. Like u gave me a bid and i said okay sounda good complained and have hom extra money to help out to keep good relationship now this bs going on. Like trying to be cool with the guys but man im like get your stuff together. One thing after another forget to do stuff all the time also that i ask.
Tell him tough S... and to learn his numbers before he bids on jobs next time. Either fulfill the contract or get sued. Is he working under his name, an LLC or corp? It is tougher if he is an LLC or Corp because he can shut down and walk away with minimal recourse but it is still a decent threat if he isn't a total moron
Sounds like a typical "taking from Peter to pay Paul type of situation". A majority of contractors are guilty of this and get into the weeds if they don't know how to deal with cash flow problems. (Not your problem!) The only time a contractor should be asking you for more money is due to a change order which would be for something outside his scope of work. If you don't stop giving him more money the next thing he will ask for is gas money to get to and from your job. (I'm serious this stuff happens) He needs to eat his mess up, finish the job, learn from his mistakes and move on.
@Bryan Devitt he only gets payed after each description of job is competed. Like each couple projects. But does have in contract what he’s supposed to do and get payed for each time.
@Caleb Heimsoth frustrating as hell then i bought other places based on there bids and now saying they dont know if they can so foe price now. Like how messed up is that?
@Caleb Heimsoth frustrating as hell then i bought other places based on there bids and now saying they dont know if they can so foe price now. Like how messed up is that?
Contractors aren’t know for being good with money so this isn’t surprising to me
Don’t give him anymore money and tell him he needs to finish his work. Give him a chance to make it right but if he stutters then that will be your answer. He will drag his azz or turn into a ghost so it’s better to find someone else to finish it up. Is this guy a licensed contractor?
This is how it goes with contractors when you need them more than they need you. You put your business in the hands of an obviously sketchy, obviously poorly rooted individual based on a promise that he could get a job done for a lower price than others like him. This is the first time you're in this situation and the hundredth time for him. Of course you're going to get taken advantage of.
You believed when you signed him on that the contract and the vague rules of polite business dealings were going to save you from getting shafted. And now you realize that the contract he signed is largely unenforceable and this guy isn't polite at all.
Learn the work, learn what it typically costs in materials and time to get the jobs done, have multiple backup plans in place to deal with this. Ultimately, it comes down to needing this one guy less. Don't base your business on people who don't have much to lose if they screw you.
Hey Joshua, I remember as of your last post you were stacking serious cheddar in RE and complaining that other people were pissing and moaning that you were making them rich. Family and whatnot. Uh-huh, I remember your distinctive writing style now.
Well you do drive around in that high-end truck, as we discovered last time around the wading pool. You get rid of that? And how many houses did you buy for how much based on this guy's estimates?
@Jim K. Now a high end truck the biggest mistake i ever made. I always has $1,000 trucks. Worst purchase i ever made and i get that. I never said people were pissing and moaning and making them rich? I was suggesting i could see them feeling like there making me rich. Always thought of them and wanted to treat them good. But really what can you do?
@Joshua D. Go with another contractor. Good contractors know how to bid a job and make money. If he has no money, you're going to end up a part of a pyramid scheme where hes using your money fo other projects he may be doing and then not paying his subs for your project. This deal will not end well for you. Expect to pay a little more and go with a more financially stable contractor
You are considering giving him more projects? I do not think adding more fuel to this fire will likely solve his cashflow problems.
This is why it is important to make sure individual trades/jobs get finished before moving to the next. If there are just a bunch of unfinished jobs, it will be a nightmare to get someone else in there to complete it. Likely you will be paying for them to re-do each unfinished task in entirety.
Dude is scamming. This is only the beginning. By all means, STAY AHEAD OF HIM IN PAYMENTS. In other words, don't pay for work not done. Hire a trusted Contractor as a consultant to help you determine if work done warrants payment. Trust me. I got burned bad years ago with one of these guys.
A contractor with money problems (which he has if he's borrowing money) is your biggest enemy on a rehab.