Contractor not finishing my flip!!!!

Woodbury, NJ · Member since 2017 · 38 posts · 8 votes

How do you handle a contractor who was suppose to finish a job in 3 months which is now a YEAR and he is basically saying he messed up the rest of your budget money? I want to cut him off my job and file a lawsuit what steps should I follow in New Jersey also any referrals of the kind of lawyer I need please list thanks.

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Lynnette E.

Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes

I do not know anything about NJ, but some states require that licensed contractors are bonded. IF NJ has a bond requirement you can go after his bond. No attorney needed, in the states I have worked with, you file through the state licensing board. Going for a contractor's bond does get their attention.

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Chance Stein
Rental Property Investor · Cold Spring, MN · Member since 2019 · 25 posts · 11 votes
7y
Honestly, from what I have heard and read... I don't think its worth your time or money to try and take him to court. If the amount of money is very large that is a different story but I'm guessing its under 20k.
But there are some things you can do depending on what sort of company it is. Could you give some more information? Is it a sub contractor, general contractor, handyman? Is he running his bushiness through an LLC?
2 Reply
David Stumpf
Rental Property Investor · Baltimore, MD · Member since 2017 · 142 posts · 125 votes
7y
Taking a contractor to court will be a waste of time and money. In most cases the contractor won't show up to court, the judge will find in your favor against the contractor in his company name, the contractor will abandon that company name and start a new on without skipping a beat.
3 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Chance Stein it's a general contractor
0 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@David Stumpf wow that's insane so contractors just get away with ripping people off pretty much?
1 Reply
Chance Stein
Rental Property Investor · Cold Spring, MN · Member since 2019 · 25 posts · 11 votes
7y
Is it a larger company?
0 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Chance Stein no a small company
0 Reply
David Stumpf
Rental Property Investor · Baltimore, MD · Member since 2017 · 142 posts · 125 votes
7y
Pretty much. There are as many or more bad contractors as there are good contractors out there. You really have to be careful you don't pay too much too early in the job to help prevent being ripped off.
0 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@David Stumpf thanks it's crazy but that's all I've been reading online
0 Reply
Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Tycee Tyler sounds like you nee to hire an attorney to advise you. Depending on the amount of money and thoroughness of your evidence, which would be a very detailed set of plans, specs, contracts documented change orders, written communications, etc. a lawsuit may or may not be worth it. The problem with suing is he will likely dispute and even if you have all the documentation at $250-$350 an hour it can rack up pretty quick. Best thing is to get him off the job so you can hire someone else to finish.
1 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Greg Dickerson I have some pretty solid evidence even have him on voice record saying he spent the money but with poor reason why so it doesn't add up to amount of money due
0 Reply
Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
Originally posted by @Tycee Tyler:
@Greg Dickerson I have some pretty solid evidence even have him on voice record saying he spent the money but with poor reason why so it doesn't add up to amount of money due

Sounds like you may have a good argument. Now it's a business decision. How much money are you out vs how much will you spend trying to litigate. It will cost a minimum of $5k to start the process and will hit $10k before you know it.

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Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Greg Dickerson wow I'm searching attorneys now at least gonna do a consultation
0 Reply
Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
Originally posted by @Tycee Tyler:
@Greg Dickerson wow I'm searching attorneys now at least gonna do a consultation

Yes wow! they will give you a free consult and maybe fire off a letter for a few hundred dollars but to engage they will ask for $5k retainer to start litigation. Make sure to look for an attorney who specializes in construction law and litigation.
4 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Greg Dickerson thanks appreciate it
0 Reply
Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y
I do not know anything about NJ, but some states require that licensed contractors are bonded. IF NJ has a bond requirement you can go after his bond. No attorney needed, in the states I have worked with, you file through the state licensing board. Going for a contractor's bond does get their attention.
10 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Lynnette E. Great info thanks
0 Reply
George W.
Investor · NJ · Member since 2018 · 869 posts · 921 votes
7y
You should reach out to the NJ DCA. Dpt of consumer affairs. They will help you. This is the kinda thing that dw
0 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Tara Schoonmaker ok
0 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@George W. Ok Thanks
0 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@Tara Schoonmaker nice thanks
0 Reply
David L. Pitman Jr.
Member since 2019 · 7 posts · 2 votes
7y
@Tycee Tyler why has it taken you so long to fire this guy??
Sounds like you’re a little too nice!!!
Is this a family member or close friend of a friend!!!
Sometimes it’s kill or be killed.
1 Reply
Tycee Tyler
OP
Woodbury, NJ · Member since 2017 · 38 posts · 8 votes
7y
@David L. Pitman Jr. This my first flip and he head me under the impression that it was the city issuing permits and taking long to come out for inspections it wasn't until I started going up there when I realized he was lolly gagging. Besides that he had my money I was trying not to cut him lose and use my own funds to finish the project but I have to
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Account Closed
Contractor · San Diego, CA · Member since 2018 · 432 posts · 221 votes
7y
@Tycee Tyler I HATE to say, but having a contractor on your job for a YEAR, past your 3 month goal is like eating a steak dinner that’s over cooked, finishing all but one bite, then trying to get the waiter to get you your $ back. We hear this from time to time here, but you have to take some ownership for your decision to keep him around. There must be a heavy amount of work that’s been done after a year, and some people end up trying to get the contractor to eat all that and pay them back. Contractors that don’t know how to estimate time or get things done timely probably don’t have much $ to sue for. Change orders occur all the time on big jobs, so how many things were added beyond the original scope of work?
1 Reply
Natalie Schanne
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Tycee Tyler - it sounds like you paid for some education here. Hopefully it's not as much as a $25000 guru. I limit my downpayments (or don't pay anything until there's work done) and try to provide materials to avoid silly markups and sometimes people I want to work with won't take my jobs. I met one licensed jersey contractor who inspected the job and said 33% down now to get on my schedule, 33% day one and 33% at completion. I said sorry I can't work with you if it's 66% paid before day 2 on a multi week job. Where's his incentive to come back quickly if ever? You have many fewer recourses if the contract is between his LLC and your LLC. Consumer protection will help you if it's his LLC and YOUR NAME as a consumer. A lot of the times the small contractors have poor written contracts. $20000 for everything (verbally) and a handshake won't help you. If he's spent the money he needs other jobs not yours to keep paying his own bills. He might feel bad but he is going to allocate his time and $$ to getting more work and not to paying for materials and time to do yours. Just life. Happens all over the us. You need to find a new contractor and should have 8-9 months ago. Don't ever be so hands off especially when hiring a new contractor. THEY ARE ALL GOOD AT TELLING STORIES. I got stories from my 70k GC and my partner paid him anyway even though I pointed out it was obvious he didn't two coat the paint as in the specs even though we were paying a premium $8000 to prep and paint the whole house. When I said this isn't the quality we agreed on (no prep, imperfect coverage), he said you're kidding me if you expect me to repaint your house. I'm like show me the evidence you did two coats and didn't make all these drip marks and he couldn't. Or he installed a worse efficiency AC than agreed (seer 14 vs 16). All these things added up to thousands in additional profit and he drives to my house in his fancy 50k+ ford truck. Great storyteller that one. Convinces you that you didn't agree to what you have in writing. Good luck. Call someone legit and get the work done. You can't make flip money if you don't finish and sell it.
6 Reply
Jim BlackburnBusiness Member
Lender · Florida Based (48 states Puerto Rico) · Member since 2017 · 321 posts · 121 votes
7y
@Tycee Tyler
A year is a long time, I'd hate to see those carrying costs! A good way to set up payments to contractor is at the completion of weekly phase on Fridays, this way they are always motivated to work then next 5 days to get to the carrot on Friday.
Unless of course, another relationship is paying him more to work on their stuff first, then you need to increase your budget or find a different contractor.
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