How to fire my contractor?

Question

My home was damaged by Hurricane Florence a few months ago so I hired a general contractor to manage my project from start to finish. We had a verbal agreement to be finished before Thanksgiving but he keeps saying he will have it done in a couple weeks and that "he won't leave me hanging" He also claims to be BBB certified but I checked and he isn't. I have really had to dig for any info on his company and finally found reviews from people encountering similar problems as well as hunting people down for unpaid money. He keeps asking for my insurance deductible but The contract says that isn't due until the work is completed. The contract is vague and basically only States I owe him money upon completion of work. He has been paid $7000 for demo, new roof, and putting up drywall as well as mold/ water remediation. There is no written scope of work or timeframe only verbal. I am getting out of the Military on Jan 17th and am moving out of state with my wife and kid so this place HAS to be done by then so I can get it rented out and not he  paying for a vacant home, not to mention I'll be losing my paycheck temporarily unitl I get a new job. Any suggestions? I have sent him an email today stating I was unhappy, he had until the 10th of Jan to finish and if he couldn't to let me know as I would hire somebody who could. I also listed what needed done and re done. How can I legally fire this guy so I can get a good contractor in to finish the job right??

Michael M. · Answer

Account Closed

I'm not an attorney, but hopefully some of this would help:

For the insurance deductible, if it’s spelled out in the contract the deductible is not due until completion, then do just that. You have your end covered on that aspect.

Honestly the verbiage within the signed contract is the biggest determining factor on your rights for termination. I’d re-read the contract to confirm what rights you have, and then have the phone call with him that it was supposed to be completed a month ago, it still isn't completed and that you're going to get someone else, unfortunately you just need to be blunt about it.

Also I’m not sure how it would work since it’s an insurance claim, but possibly notify the insurance company that you’re going to be finding another contractor.

One last thing, because I’m in the construction management field and deal with finances as well, I like to reduce risk wherever possible and I’d suggest looking into state specific forms to have him sign since you've already paid him: (might need to consult with an attorney for the verbiage, just depends on what you can find online):

• unconditional release of received payments
• receipt-release and indemnity agreement
• a sub-tier/third party release
• lien release form

These would all cover your end for the money you’ve already paid out, so that he can’t come back after you for “lost money”, or if his roofing sub comes back to you saying they were never paid.

Hope this helps.

EDIT: Forgot to include this before hitting reply, but thank you for serving our country!

Edward Kiser · Answer

I just checked with the County, he needs permits for anything done outside of window replacement or tarping a roof. I checked to see if he pulled permits and he did not.

Daniel Cullen · Answer

If you think that his work to date is not properly performed and if you think you may have to go to court or arbitration eventually then you might consider hiring a local home inspector to document what he's done so far. An inspector with experience in the FHA 203k program should have the ability to determine if his pricing was fair and if the work was done per local and industry standards. Doing so could save you some headaches down the road.

Michael M. · Answer

It'll really have to go back to how your contract was written,some contracts might be written like " All permits, inspections and necessary pro-active coordination to maintain the project's schedule shall be the responsibility of the Contractor and shall be included in this contract amount", or  " The Contractor shall comply with all necessary state and local codes including Authority Having Jurisdiction.

Again just something along those lines that can help convey the point that it's the contractor's responsibility.

I could be wrong on this, but to my understanding if the work does not affect the square footage of the house nor the structural components, and is simply replacing a "like-for-like" type product (swapping out an old light fixture for a new one, but the are on the same circuit and panel,  permits would not be required.

Edward Kiser · Answer

I will look into that, using the insurance itemization I came up with $5800 for the work he has done minus mold/water remediation. I think he has been paid more than enough. His sign and website say BBB accredited but I looked it up and he isn't. That can't get good....

Edward Kiser · Answer

Thanks again for your advice and time, I really do appreciate it. Im going to do some more homework and find out if he is "bonafide"... I will base any further decisions off of that.

Edward Kiser · Answer

Definitely a learning point and something I should have thought of. I'm trying to estimate what he has done so fay by using the itemization sheet the insurance created.

Edward Kiser · Answer

Since he hasn't pulled any permitting does that invaldiate the contract? Honestly I did not even think about that aspect. I apperciate the advice and feedback, I will look into those forms.

Edward Kiser · Answer

I checked the county website and couldn't find any permits pulled for my property, if he didnt pull permits what does that mean for me? Seems somewhat fishy...

How to fire my contractor?

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