Hello BP family - long story short. Hired a contractor in November 2020 to do a renovation job on our property - it is a multi-family so we have been house hacking. It is a 1 bedroom apartment. Per the contract, the job was going to take 2 weeks. The job was to redo the floors, redo the bathroom (convert tub to shower, install new fixtures, new toilet), redo the kitchen, and put in new doors. The job was going along smoothly then they stopped abruptly. We have paid for the project. When we finally got them on the phone, got told that they are waiting for a PPP loan and not sure what that got to do with my project. PPP loan was supposedly funded back in February 2021 but has yet to hit their account. It is now March 2021 and our project is not complete. What action can I take from a legal standpoint? I have text messages and emails showing all of this and the promises that have to be met. Our contract is still binding. Do I need to fire them first before hiring a new contractor? How would I do that? Trying to see what all our options are before we move forward to get this project done. On top of that, we are getting inquiries on the property so not only are we out the money we have paid them, but we are now losing rental income for not have a livable place. Any advice would be greatly appreciated. We are in NYC.
It sounds from your post that the contractor has breached its contract with you (assuming there was insufficient or no language in the contract allowing wiggle on the completion time). As a general rule, for breach of contract, you can recover the difference between the contract price and the reasonable price of cover (i.e. the cost of hiring a different contractor to complete the job). If you do intend to hire another contractor, inform the first firm that you consider their actions to be in breach of the contract, that you are retaining another firm to complete the job and that you will expect them to pay you the difference (or you will see them in court).