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Updated over 1 year ago,

User Stats

22
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8
Votes

Need Contract Attorney in California to look at new build contract

Kristina Kendall
Posted

We signed a contract with a builder to build a new house from scratch back in late 2021 and we still haven't broken ground. At the time, the contractor presented as an experienced builder but I've since learned that he owns an HVAC company and has done some kitchen/bathroom remodels. (we used a building consultant to handle the RFPs so I trusted their reco more than I should have...) Anyway, a year ago, I asked him if he was up for the challenge of building an entire house from the ground up and he 1) assured me that he was and 2) said that if I canceled the contract, I'd still be liable for the full build cost. I've paid him about $60k in draws for the permits and whatever else he's done...and the next draws don't happen until he breaks ground...but that doesn't seem to be happening any time soon.

So, my concerns now are 1) lumber costs have come way down since late 2021 so I kinda want a new quote based on current prices and 2) I'm not really confident he knows how to build a house and 3) now that i'm looking at different financing, I'm hearing that investors wouldn't want to work with him because he's never built a house. So, even though I probably won't pursue a construction loan at this point, I'm worried that maybe I shouldn't work with him either. So, I need to know my options for backing out or renegotiating the build cost.

For those curious, I think we're paying about $400/sq foot for a 2000sq ft. house on a sloped lakefront lot.

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