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Updated 11 months ago,

User Stats

3
Posts
1
Votes
Michael Vaughan
  • Houston
1
Votes |
3
Posts

Rookie Mistake. PLEASE HELP

Michael Vaughan
  • Houston
Posted

Hi,

Not sure where I should post this question. I have a property in La Marque, TX that I purchased for $65K with a $55K rehab draw. I met a general contractor working on a home close to my house. I asked him to check the property out and give me an estimate. The house required new flooring, new exterior siding, new windows, new cabinets, new siding, new plumbing, and new electrical. (All entry level upgrades.) The house is just under 1,000 sq ft. The material costs were ~$17K. The contractor originally quoted me on the phone $48K and 4 weeks. I asked 3 times for a contract. He started the job without giving me a contract. Two days into the job he said the job would end up being $53K because 80% of the exterior studs needed to be replaced (100 2x4x8s). I told him I would pay $55K because he was giving me a good deal but told him I needed a contract signed by both of us. Long story short, I've paid him $51K three weeks in and still no contract. Then he stops working because he was waiting on the engineering drawings to be completed. That's when I realized he didn't pull permits with the city after telling me he had taken care of the permits. The city shutdown the job. Now the contractor is telling me that the actual cost for project is $117K. He complained about not making any money off the job during the three weeks his crew was working, and I told him from the beginning that I only had $55K. Now he says he isn't going to do what's required to get the permits and he is putting a lien on the property if I don't pay him an additional $40K on top of the $51K I already paid to date. I know this is my fault for not getting a signed contract. What are my options, if any? Note that he will not give a me a materials list or cost of materials. I knew where he bought the windows, flooring, baseboards, doors, etc. which made it easy to get the costs. For the building materials i counted every 2x4, 2x6, 2x8, 2x10, sheet of plywood, hurricane straps, etc. and added 20% to get the cost. His crew walked out on him because he didn't pay them. They told me exactly what he paid them weekly. I summed everything up for the work completed, materials, and labor rate and adding 20% profit, which totaled $41K. PLEASE HELP ME

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