Chicago, IL · Member since 2018 · 20 posts · 4 votes
A contractor hired to replace siding in a relative's rental didn't show up. My relative requested her deposit back and they refused. They made the mistake of handing over the 1st half of the insurance check which totaled almost $11k, to expedite the work, but they didn't show. Now the contractor wants to keep $3k for "canceling" the contract. The contract has a "canceling fee" section, but she didn't initial it. This is going on a year. reported them to BBB and to the Attorney General's office (which they are completely useless btw). And she's reached out to an attorney (but not much has happened). Is there anything else she can do to make this company give her back her money? Not sure if going to trial will be worth it (as this exceeds the $10k limit for small claims). Can anyone recommend an attorney that maybe can get this resolved quickly for a reasonable price? Isn't the bond company now responsible for repaying the money?
Any help and suggestions would be appreciated. Thank You.
(Also, not sure what the legality rules are about mentioning this company by name, but definitely don't want anyone else being ripped off by them so if you know how we can help BP and other folks avoid them please let me know.)
In Ca, we would contact the license board. Is the contractor licensed? Contact license board. You can claim there bond if they rule in your favor.
That why you should always hired license professionals.
Thank You Scott. Nothing personal, but we only exchanged 1 message. And I would like to get to know people before I endorse them as colleagues. Just the way I am, again nothing personal, no hard feelings. Best of luck to you sir.
In Ca, we would contact the license board. Is the contractor licensed? Contact license board. You can claim there bond if they rule in your favor.
That why you should always hired license professionals.
A contractor hired to replace siding in a relative's rental didn't show up. My relative requested her deposit back and they refused. They made the mistake of handing over the 1st half of the insurance check which totaled almost $11k, to expedite the work, but they didn't show. Now the contractor wants to keep $3k for "canceling" the contract. The contract has a "canceling fee" section, but she didn't initial it. This is going on a year. reported them to BBB and to the Attorney General's office (which they are completely useless btw). And she's reached out to an attorney (but not much has happened). Is there anything else she can do to make this company give her back her money? Not sure if going to trial will be worth it (as this exceeds the $10k limit for small claims). Can anyone recommend an attorney that maybe can get this resolved quickly for a reasonable price? Isn't the bond company now responsible for repaying the money?
Any help and suggestions would be appreciated. Thank You.
(Also, not sure what the legality rules are about mentioning this company by name, but definitely don't want anyone else being ripped off by them so if you know how we can help BP and other folks avoid them please let me know.)
Don’t pay a deposit to someone you don’t fully trust and have verified.
Thank You Taye N. They are licensed didn't know that was an option. I will look into it.
Unfortunately, it will be a very expensive lesson. Only make these kinds of mistakes once. I personally have made many mistakes, but then integrate best practices into my investment process to ensure the mistake is never made again.
This lesson is “only pay once the job is done and has been verified by at least two other people who are incentived to want the work to be done well” ... generally I use local brokers who are interested in my new business and tenants who live in the house.
Jon S. I agree it was a big mistake. She's a senior citizen and was very trustful. But we can't just let it be. There has to be a way to hold these people accountable for taking advantage of her.
Jon S. I agree it was a big mistake. She's a senior citizen and was very trustful. But we can't just let it be. There has to be a way to hold these people accountable for taking advantage of her.
Yes, my grandmother is as well. In a similar situation lately, so we had to take her money/credit cards and manage it for her. Unfortunately, these criminals target senior citizens.
Appreciate the shout @Nathan Platter, though I'm certain I don't know IL construction law applicable here (MN/WI licenses only). What is most glaring to me here is that the company is holding onto more money than they claim to being owed. At the very least, you should demand that other $8K back right away. Sometimes companies will try to sneak in a "paid in full" or similar acknowledgement to make it look like the dispute is settled, so watch out for sneaky tricks. It is my sense (again, please don't take this as formal legal advice) that the lack of initial on one particular provision won't save that from being enforceable. But, there may be IL laws that say they can't hold onto more money than they claim to be owed. Construction laws generally allow for some reasonable cancellation fees provisions in contracts, if clear. But it sounds like this contract is ambiguous at best. If they return the $8K, then you'd be set for small claims court anyways. As it stands right now, the contractor is "unjustly enriched" (term of art) because they have possession of money that they haven't done any services for yet. Hope that gives you some things to think about @Pedro L. From my vantage point, any construction attorney fluent in IL law should be able to tell you the most cost-effective way to proceed, ideally in a free consultation.
Contact an attorney and have them send a demand letter for damages and breach of contract. You have already tried on your own. they will just blow you off. If you have reached out to an attorney, follow up with them in writing and hold them accountable to respond. If they don't respond, then find another attorney. If you don't want to use an attorney, file a small claims amount for the balance. But don't cash any check if it is not the full amount. That can be determined to be full accord and satisfaction of a disputed amount.
Don't name anybody by name in a public forum. True or not. Just don't do it. Not worth the heat.
I know just a little about this stuff and yes, local law may come in to play.
In general, a contract is an agreement, which requires action from two or more parties. The contract ought to have an estimated start date. If they have not met that part of the contract, they are in breach and the cancellation clause ought to be a moot point. WI has laws requiring contractors to write contracts a certain way and if not, they can be penalized by the state (this is separate from any action you would take). I know Chicago has a bunch of excessive laws governing all sorts of contractor stuff, so its certainly possible there are laws concerning contracts too. You can start by searching through the state legislation using your google machine. Or, cut to the chase and get a 1 hour consult with a lawyer, who ought to be able to provide you with options in that short amount of time. And last, if they hold $11K and small claims is $10k, maybe the difference is worth it after you factor in what a lawyer/court costs would be. If all of this is too much to take on/research, stop screwing around and go to a lawyer and spend an hour.
Pedro L.
Welcome to BP.
Have they provided you receipts of damage repairs and proof funds / cancelled checks that were used to take care of those damages?
If not, you are head of the game.
Hope it helps.
Also, my take away home lesson is “don’t pay anyone up front, but afterwards. Unless this legit business has been there for a long time and you have enough references.
Good luck.
Have they provided you receipts of damage repairs and proof funds / cancelled checks that were used to take care of those damages?
If not, you are head of the game.
Hope it helps.
Thank you James Syde. Getting so much great info from the community so glad to be here. No they have not provided anything. They didn't even return calls until she left them a voicemail that she wanted her money back and then gave her the run around about when they could start.
The whole debacle is a tough thing. Many contractors require money down to start. The thing to keep in mind there, is that's not a law or non-negotiable. Contractors often feel they need the money down to protect them from homeowners who decide not to pay and frankly, you cant blame them for that. On the other hand, the contractor can file a lien against your property if you don't pay and you can do what? So, the contractor has the upper hand going in, even without a deposit, not you. I like to remind contractors of that when they demand a deposit. The tough part is it can be difficult to find contractors in the first place and then again, they have the upper hand. Collecting contractors might be the toughest part of this business.
I am small time and can not afford to be taken by contractors. My policy, which I try hard to keep but do make exceptions for from time to time, is to pay only materials up-front and even then, I try to purchase them myself if I can. Contractors that want money for labor up front can take a walk. However, I think it is reasonable to allow for draws along the way for jobs that take multiple weeks - these folks have to pay their bills too.
Here is a fun almost-horror story. I was looking for some tile work to be done and called many guys, most wouldn't even show up to bid the job. I finally got the "dream" guy, who came right out, was obviously knowledgeable and experienced and who gave me a fair quote. All good. Then, he starts in with the "I had a cancel and can start earlier" bit. He sends over contracts that are the template type with all sorts of issues. He continues to pressure to start, every day he can get there sooner. I had verbally agreed to put 1/2 down at this point. So, I decide to re-write the contract myself and while doing so, also did a search on the guy. Turns out he had been convicted of fraudulent activities. So, I re-wrote the contract, except instead of agreeing to 1/2 down, I would provide materials and pay him when it was done. I met him at the property and presented him with the new terms. He got upset immediately and asked why I did that. I told him. He made a bunch of excuses and became more agitated by the second. I said "look, the job is yours if you want it, you can start right now, I'm just not going to pay you for work you haven't done yet, I don't know you, take it or leave it". He decided to leave it, I was polite and said "peace" and turned and walked away. As I was turning the corner of my house, he yells out "you m-f-ker". LOL. I am a really nice, personable and reasonable person. I also have an ugly side that doesn't take crap. I turned around, approached his car and started screaming for him to get off my property. He hit the gas and couldn't get out of my driveway and down the street fast enough as I chased him down screaming. I was thankful I didn't have a hammer in my hand - lol. Then I went inside and talked to my electrician who is the nicest guy ever, embarrassed he witnessed that side of me.
Also, my take away home lesson is “don’t pay anyone up front, but afterwards. Unless this legit business has been there for a long time and you have enough references.
Good luck.
Absolutely, it gets complicated, but in short, one of the employees of the company she thought she was hiring was "poached" by the company she is having this issue with. She thought she was doing business with a different company all together, which State Farm does business with all the time and came highly recommended. So technically she was duped into signing.
I wonder if State Farm could help, considering they recommended the company?
Sorry let me clarify, State Farm does business with the original company all the time, and a friend recommended them. The company signed with is not who she thought she was hiring. State Farm said there was nothing they can do and will not issue the remaining balance on the claim until work is completed.
I wonder if State Farm could help, considering they recommended the company?
Sorry let me clarify, State Farm does business with the original company all the time, and a friend recommended them. The company signed with is not who she thought she was hiring. State Farm said there was nothing they can do and will not issue the remaining balance on the claim until work is completed.
K. Thought it was worth a lookey. If I was a company that got a huge amount of work from a great-paying client like an insurance company, who provided me with repeat business, who might drop me for having relations with unethical people, I might bend over backwards to avoid a PR scandal, maybe even pay the thing myself if the numbers worked out. Just sayin.
I wonder if State Farm could help, considering they recommended the company?
Sorry let me clarify, State Farm does business with the original company all the time, and a friend recommended them. The company signed with is not who she thought she was hiring. State Farm said there was nothing they can do and will not issue the remaining balance on the claim until work is completed.
K. Thought it was worth a lookey. If I was a company that got a huge amount of work from a great-paying client like an insurance company, who provided me with repeat business, who might drop me for having relations with unethical people, I might bend over backwards to avoid a PR scandal, maybe even pay the thing myself if the numbers worked out. Just sayin.
They did try to help initially but they might have been advised to not get involved because they stopped responding. Last thing they said is to send the bad company a termination letter and get an attorney.
If your relative is not wealthy they should check into Land of Lincoln or maybe it is Lincoln land law firm. They represent the poor for almost free. They sure represent tenants all the time.
If your relative is not wealthy they should check into Land of Lincoln or maybe it is Lincoln land law firm. They represent the poor for almost free. They sure represent tenants all the time.
She is not by any means, thank you George I will look into it for her.