Rehabbing & House Flipping

User Stats

48
Posts
13
Votes
Kyle Nigro
  • Rental Property Investor
  • Wantagh, NY
13
Votes |
48
Posts

Issue with contractor

Kyle Nigro
  • Rental Property Investor
  • Wantagh, NY
Posted Mar 21 2023, 15:06

I purchased a flip a few weeks back.  The contractor I had working for me gave me a spreadsheet of the costs, but nothing was ever signed.  He said it was “in good faith” after one of his managers made some critical mistakes on the first estimate.  I should have left them the first time…

Long story short, minimal work was done within the scope and I’m looking to move on. what am I legally obligated to pay him when minimal work was done?  He told me he was to get his attorney involved, but I don’t have a contract or anything with this company.

I have another company lined up but I don’t want to burn any bridges.  How should I approach this?

Thanks! 





User Stats

262
Posts
268
Votes
Andrew Bang
  • Lender
  • Texas; Arizona
268
Votes |
262
Posts
Andrew Bang
  • Lender
  • Texas; Arizona
Replied Mar 21 2023, 15:07

Get rid of him, move on, call his bluff with the attorney.  It will only become a bigger headache if you keep using him, it won't magically get better.   Cut ties as soon as possible

User Stats

262
Posts
268
Votes
Andrew Bang
  • Lender
  • Texas; Arizona
268
Votes |
262
Posts
Andrew Bang
  • Lender
  • Texas; Arizona
Replied Mar 21 2023, 15:08

Hire Slow, Fire Fast

User Stats

8,704
Posts
4,607
Votes
Eliott Elias#3 All Forums Contributor
  • Investor
  • Austin, TX
4,607
Votes |
8,704
Posts
Eliott Elias#3 All Forums Contributor
  • Investor
  • Austin, TX
Replied Mar 21 2023, 17:05

It’s more likely than not a scare tactic. I would still get with an attorney.

User Stats

24
Posts
13
Votes
Leo Kwok
  • Flipper/Rehabber
  • Chicago IL
13
Votes |
24
Posts
Leo Kwok
  • Flipper/Rehabber
  • Chicago IL
Replied Mar 21 2023, 20:47

if there was never a signed agreement, you should be in the clear.... Him claiming he is going to lawyer up sounds like a scare tactic to me

User Stats

119
Posts
57
Votes
Kevin Ivey
  • Flipper/Rehabber
  • Marysville, WA
57
Votes |
119
Posts
Kevin Ivey
  • Flipper/Rehabber
  • Marysville, WA
Replied Mar 22 2023, 08:46

Either way have him stop work he can only come after for work performed since no contract & bid was incorrect (I know in WA state there is limit to how much over bid you can be charged).

you're going to incur extra carrying costs & the vagaries of the market the longer you have the project stalled, but get the contractor cleared up before listing on the market & he could lien stalling your closing.

Best of luck

User Stats

2,294
Posts
1,856
Votes
Luka Milicevic
  • Real Estate Agent
  • Nashville, TN
1,856
Votes |
2,294
Posts
Luka Milicevic
  • Real Estate Agent
  • Nashville, TN
Replied Mar 22 2023, 09:35

I have a very good friend who is a construction litigator. He said when someone tells you "I spoke to my attorney" you can bank on the fact that they have NOT spoken to an attorney. 

Get rid of them. This is part of the business. Contractors will be contractors.

I fired a tile guy after he didn't show up for a week and kept telling me he will show up. I paid him for his materials and what I thought was a reasonable price on the work he did. Never heard from him again. 

  • Real Estate Agent Tennessee (#358883)

User Stats

11
Posts
15
Votes
David Esslinger
  • Rental Property Investor
  • Mount Pleasant
15
Votes |
11
Posts
David Esslinger
  • Rental Property Investor
  • Mount Pleasant
Replied Mar 22 2023, 13:23

@Kyle Nigro people that say I'm gonna get an attorney involved never do, and if he said it so casual this isn't his first time screwing someone.

User Stats

48
Posts
13
Votes
Kyle Nigro
  • Rental Property Investor
  • Wantagh, NY
13
Votes |
48
Posts
Kyle Nigro
  • Rental Property Investor
  • Wantagh, NY
Replied Mar 22 2023, 13:56

Welp! Just an update.  I fired him, called his bluff, and there really wasn’t an issue.  He asked for an amount to be paid for the minimal work that was done.  Once I have that verified, I’ll cut him the small check and be done with it.  I Appreciate everyones help in this forum.

User Stats

38
Posts
34
Votes
Ronald Fontenot Jr
  • Contractor
  • Houston Texas
34
Votes |
38
Posts
Ronald Fontenot Jr
  • Contractor
  • Houston Texas
Replied Mar 23 2023, 20:51
Quote from @Kyle Nigro:

Welp! Just an update.  I fired him, called his bluff, and there really wasn’t an issue.  He asked for an amount to be paid for the minimal work that was done.  Once I have that verified, I’ll cut him the small check and be done with it.  I Appreciate everyones help in this forum.

Speaking as a contractor, if I were you, I'd move on and save your money for the new contractor. You don't have a contract, so this isn't going to go well for him IF it ever makes it to court, and if it does, countersue him for legal costs. Also, the fact that you're dealing with this situation is worth keeping the money you're thinking about paying him. In addition, the new contractor you hire is not likely to cut you any slack for having to finish someone else's work. And lastly, by giving this guy any more money, you are enabling his behavior. Let him feel the pain of this. Don't lose sleep over burning that bridge. There's plenty more contractors out there willing to do a good job for a good price. And for Pete's sake, with the next one, GET A CONTRACT!!!

User Stats

48
Posts
13
Votes
Kyle Nigro
  • Rental Property Investor
  • Wantagh, NY
13
Votes |
48
Posts
Kyle Nigro
  • Rental Property Investor
  • Wantagh, NY
Replied Mar 25 2023, 17:26

The previous contractor contacted me in a group text message with his attorney stating I owe 4k… I don’t really intend on paying him anything being that I contacted a former contractor and electrician of his and they told me that work was not done.

User Stats

8,659
Posts
9,217
Votes
Bruce Woodruff#1 Contractors Contributor
  • Contractor
  • Arizona
9,217
Votes |
8,659
Posts
Bruce Woodruff#1 Contractors Contributor
  • Contractor
  • Arizona
Replied Mar 25 2023, 18:16
Quote from @Luka Milicevic:

Contractors will be contractors.

Hey now, I resemble that remark.... 😂


User Stats

8,659
Posts
9,217
Votes
Bruce Woodruff#1 Contractors Contributor
  • Contractor
  • Arizona
9,217
Votes |
8,659
Posts
Bruce Woodruff#1 Contractors Contributor
  • Contractor
  • Arizona
Replied Mar 25 2023, 18:20
Quote from @Ronald Fontenot Jr:
Speaking as a contractor, if I were you, I'd move on and save your money for the new contractor. You don't have a contract, so this isn't going to go well for him IF it ever makes it to court, and if it does, countersue him for legal costs. 

As a matter of fact, in the states where I have experience (CA and AZ), if a Contractor performs work without a written contract, he is in violation of the law and a judge will make his life miserable.

That's why they call them 'Contractors' :-)