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Tax, SDIRAs & Cost Segregation

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Pete Harper
  • Rental Property Investor
  • Streetman, TX
475
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510
Posts

Can you sue subcontractor

Pete Harper
  • Rental Property Investor
  • Streetman, TX
Posted Apr 21 2021, 07:59

I have an issue with a GC on a remodeling job. He has abandoned the job unfinished and refuses to answer phone calls, txt or emails for over a month now. I sent him certified mail terminating contract for default. I have also filed a claim in small claims court to recover what I have paid him already. Likelihood of recovery is very low. I hear GC has three other jobs in a similar abandoned state as mine.

I have tracked down the subcontractors independent of GC. The plumber is owed funds by the GC. After negotiations he has agreed to complete the job if I agreed to cover what he is owed by GC. The plumber and I now have a new contract. I will pay what he is owed by GC plus add on to fix what GC has done. GC cut waterlines in the slab so we need to run all new lines.

I also tracked down the electrician. Turns out electrician is a relative of the GC. At first he denied he was connected to the job. Then I pointed out he is listed on the building permit that was part of the original contract. That refreshed his memory. He now admits the GC owes him money too. The electrical is roughed in and passed inspection. We updated electrical device and he needs to bring power in from the pole to the new panel and wire outlets, switches etc. I made him the same offer as the plumber. Finish the job and I will pay what is owed by GC. He is refusing to finish and not cooperating.

My question is can I sue the subcontractor in Texas small claims court? He has more at stake than GC. He is an established business, state licensed and Google and Yelp Business profiles.

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