GC terminates contract early and leaves unfinished jobs

Investor · Hartwell, GA · Member since 2018 · 22 posts · 7 votes

GC is about to walk out on me. We are in the middle of a remodel. We have a contract. I haven't payed anything upfront so it is not a money issue, more the fact that there are half done jobs left behind and another gc for sure will quote me more to pick those back up. I'm about to seek legal council but wanted to run a quick check here about thoughts, tips, advices. Thanks a lot.

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Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

@Brian Greenway Sorry to hear what you are up against. Contractor management is one of the most challenging parts of the business. I don't foresee any advantages to litigation in your case unless you can demonstrate the work was done incorrectly which doesn't appear to be the case. At least not based on what you wrote. Unless the contractor has professional liability coverage, not many avenues for recovery and even then its a long and costly process assuming the carrier picks up coverage.

You are in a better position than most since you are ahead on payments. My advice is to find out what is causing the contractor to leave the job and then seek the contractors cooperation on the transition to the new GC. This will save you time and money if the new GC can be briefed on the in progress work. It's also critical the current GC and all subs are paid and you obtain lien waivers for the work that was completed to avoid any mechanic lien issues.

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Andy SabischPro Member
Investor · Jackson, MS · Member since 2021 · 660 posts · 561 votes
2y
It sounds like you have a contractor that either is in over his head (skill wise or help wise) if money is not the issue. Have you discussed the reason he is planning on exiting stage left? There may be a valid reason that both of you can work around.

If not, legal action is often the route that costs you more and gets you nothing. What are you going to take him to court over? He has not taken your money so there is no loss there. He may have an explanation that you did not explore (see above) that the judge agrees with and tosses your case. More than likely, you will be out the time, the court costs, any lawyer expense and come away with at best a judgement that will costs you more money to collect.

The best route is to talk to the GC and if you cant find common ground, part ways and find one that will in fact finish the work. And yes, most GCs will charge more to finish half done jobs as they will be responsible for the final product and do not know how what you have was done.
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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y
@Brian Greenway Sorry to hear what you are up against. Contractor management is one of the most challenging parts of the business. I don't foresee any advantages to litigation in your case unless you can demonstrate the work was done incorrectly which doesn't appear to be the case. At least not based on what you wrote. Unless the contractor has professional liability coverage, not many avenues for recovery and even then its a long and costly process assuming the carrier picks up coverage.

You are in a better position than most since you are ahead on payments. My advice is to find out what is causing the contractor to leave the job and then seek the contractors cooperation on the transition to the new GC. This will save you time and money if the new GC can be briefed on the in progress work. It's also critical the current GC and all subs are paid and you obtain lien waivers for the work that was completed to avoid any mechanic lien issues.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Stuart Udis:

It's also critical the current GC and all subs are paid and you obtain lien waivers for the work that was completed to avoid any mechanic lien issues.

This ^^^^^^ Get an unconditional lien release from all Subs, don't let the GC just say they've all been paid...and have him give you one as well.

If your GC wants out and you are even with the money thing (he is paid up to date for all work completed?) then you really don't have a problem...except that you are forced to switch horses in mid-stream which I know is not desirable....

A new GC will not always charge so much more to take over a job mid-stream, it just depends on a lot of things (like the original GCs reputation).

I would get a release (of sorts) stating that the original GC will warranty the work that he has completed and that the new GC is not liable for any work not performed by his company. I've written these up on a bar napkin myself, but @Stuart Udis might have a better version or idea :-)
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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
The whole story is missing here. What is the dispute? In my experience, when the client leaves out the reasons for the contractor leaving, it may not be the contractor's fault. I have had many, many problems with contractors over the years that were 100 percent their fault, but I have also had a quick trigger on contractors, not realizing that none of them work they way I want them to, but it's whether or not they are working better than the person you would have to get to replace them half through the job.
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
2y
There are 2 sides to every story . I would like to know why the GC is canceling . This is very odd especially if there was no deposit and work was performed .
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