My contractor is now 5 months past the completion date called for in our agreement. He "dropped the ball" on getting the electric called in and now because of the storm it could be many more weeks before we get power to the house. He placed appliances in the house and says he wants to be paid. The contract calls for them to be installed. To me if I can't use them or test them they are not installed. Any thoughts ?
@Zana Blue Contractors should be paid for completed work laid out in the contract agreement. If the appliances are in the house, but there's no electric how can they be installed? If the toilet was in the bathroom but not hooked up, would you say its installed? If he wanted to be paid, he should have completed the work laid out in the contract. If you think hes moving too slow (past completion date) what do you think he will do once you do pay him? Paying him is not the answer.
I wouldn't pay either and instead explain that installed means that appliances are in working order. And 5 months past completion date he would have been fired long before. I wouldn't stick 5 months with someone who doesn't get the job done.
This sounds like you gave an inch and he's going 100 miles with it.
Perhaps, you can instead provide him an invoice with what he is to be paid minus holding costs of utilities, interest, and mortgage payments deducted from it. If he gets anything (which I highly doubt) give it to him and let him go. If it shows he's negative just call it a draw and end the relationship there.
Keep in mind, your goal is to get the job done. He isn't doing it so as painful as it may be to your ego eat the money lost and find the next guy to finish the work quickly.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing