How to handle a bad contractor

Question

Heres my story.

My mentor recommended me a contractor that did want he wanted to do when it came to remodeling my house. The only thing I choose was the flooring. He choose the back splash, cabinets, vanities, vanity tops, and paint. (He was suppose to present to me options that I can choose from which he didn't. Couple this with the fact that everything that was done was done extremely  poorly.  The contractor only specify the work will be done but not specifics such as the exact paint I want etc. The reason why I stuck with him was due to my mentor vouching for him but I realize that hes just not going to do right by me. The agreed payment was 16k and I've paid 8k upfront. What can I do to fix this situations?

Eric Schultz · Answer

@Elias Gilchrist

Not sure if you are familiar with the concept of a punchlist, but you can review the contractors work and make a list of poor workmanship and incomplete work items. Make sure to take photos and document the issues with your list. Hold some owed funds back until the contractor makes the corrections. In the private sector, 10% retainer on owes funds is typical.

Christen G. · Answer

I'm sorry this happened! It sounds nuts to me that he got all that done with no input from you. He must have worked fast!Is there anything left to be finished, or has he completed the bid he turned in? If it's the latter, I'd call him immediately and ask him to stop working and meet him for a walk-through. Explain to him that you're surprised he took creative liberties and made decisions when you thought he would bring you options - and ask if there's anything he can change while staying on budget? At the walk-through, I'd point out what you believe has been done poorly and ask him to bring it up to your standards before you issue his next payment.

Again, I'm sorry this happened! If you're a podcast person I learned a LOT on how to communicate with contractors, their mindset, etc... here:

https://www.biggerpockets.com/...

and

https://www.biggerpockets.com/...

Kenton LeVay · Answer

Yikes, sorry to hear that. I've also had my fair share of contractor issues. As long as the work is done (I said 'done', not pretty), I'm not sure there is much you can do. You promised to pay him and it's on you that there was no clear expectation on finishes or quality of work. Next time you're working with a new contractor, start small and be very specific with what you want the final product to be. Sorry man.

Nathaniel Walker · Answer

See if mentor can intercede on your behalf. If not I would  immediately have a meeting to layout future expectations and issues that need to be corrected.  I would document the meeting.  If he doesn't perform immediately terminate the contractor taking pictures of the unfinished work and issues.

Jocelyn Lian · Answer

I know this is a bit old but I am experiencing a similar situation. I am doing this remotely and I have used this person for small fixes in the past. I thought he was trust worthy. After double the time to get the person to do some work that he said it would take, we ended the work. He never showed me anything until my realtor took pictures and it's not what I asked for. I decided to let it go as long as it's done right. He would disappear then gave me a reason why he couldn't finish that day but next day it would be done for sure.

When he stopped working as agreed on, he demanded remaining payment right away. I told him I can't pay until I have people check his work. His behavior turned nasty quickly.

I had 3 different people checked out the work and it is horrible. I pretty much need to redo everything.

I can't trust him to correct the work at this point.

i have lots of pictures on the bad job and things he didn't do at all.

I am just worried that he will destroy the place if I don't pay him in full. At the same time I am so upset that anyone would do that to others.

Can I afford the $3k loss? I guess so, but should I not say anything for the fear of retaliation?

Craig Parsons · Answer

I agree with @Eric Schultz.  I would not pay this guy another dime until he completes the job in a satisfactory matter.   Be reasonable though require a high standard  but do not be overly nit picky either.    I would definitely call him out and find out why he picked and installed products without your approval.  You still have half his money, I hope, and that can be a  huge tool to insure he remedies bad work. It probably is not worth your while to make him change things but it is your house and you should at least get what you asked for. If you have questions about weather or not you are being reasonable feel free to pm me with instances and I would be glad to give my opinion of weather or not you should stand your ground.  I worked  on finishing homes in the San Francisco bay area for 30 plus years and nothing irritates me more than hearing people have contractors run them over doing what they want to do not what the customer wants.

Greg Hess · Answer

@Elias Gilchrist

Sorry you had this happen. You can google

NAHB Performance Guidelines. This will help for construction quality. Next time get a complete contract and scope of work and avoid the guy giving you a one page “contract”

Max T. · Answer

@Elias Gilchrist

Live and learn.

Christopher B. · Answer

I like the idea of getting the mentor involved. Use this opportunity to determine the true expertise and value of the mentor as well. Not saying he has done anything wrong, I have subs that are great for me that don't answer calls for people I call. Unfortunately it is the nature of the business. But ask if he truly is good at this game or if this is just the contractor.

Here is the hard truth though. This likely isn't going to end pretty for you. The project is going to cost more money than you expected and if its a flip may sell for less. One positive is you have a strong market in your favor. Let's hope the market bails you out here. But you can turn these lemons into lemonade by learning and growing from the experience and putting things in place so it doesn't happen on the next project.

Rule no.1 Never pay for anything more than the materials currently being used to a contractor.

Rule 2. Never let them make your selection decisions for you. Giving you options can be ok, this is done, but never let them design a house themselves.

Rule 3. Let the contractor go as soon as you realize they can't get the job done, are not trustworthy, or it's just not going to workout. This is a tough one, I struggle with it still after 10yrs in this game but will say every time I go against my own rule it burns me.

Good luck.

Elias Gilchrist · Answer

@Kenton LeVay yes, it looks like I'll have to pay for bad service and wrong products but it is definitely a lesson learned. Thank you for your input.

How to handle a bad contractor

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