General Contractor Negligence or normal?

Question

Hello,

Bought my first home in Chicago and it was/is a rehab. Went with a contractor who is a friend of a friend and this is my first time doing a rehab. This will be my primary residence.

It is a 2 unit RS-3 that I converted to a 3 unit RM 4.5 because it has a coach house that wasn’t legal which I didn’t know until I basically got to the closing table.

Anyhow, the contractor had been working on it since 2022 and it still isn’t done. I pay him money but then he disappears for a week at a time and won’t return my calls. Some homeowners told me “this is Norma of contractors” but I’m not buying it.

He’ll then magically appear one day and have workers do things but he isn’t there to verify the work. My roof is terrible and the wood flooring (new) is already warping.

The loan is through my bank and I haven’t paid him anymore money until things are fixed. He says he’ll fix them. Is this normal practice for contractors? There many items that need to be redone that he says he will fix but I don’t get what the hold up is if he has the money he needs from me.

Bank tells me not to give him any until items are completed but he tells me he can’t complete them without money.

I’ve consulted attorneys and they tell me to “wait and see if he fixes the issues”

One of his workers told me he was using my money to finish another job and was waiting on that payment to move forward with mine.

Even the bank is confused and he’s failing a lot of inspections. What are my resources or what course of actions do you recommend?
Consensus seems to be “wait and see” but I don’t want to if I don’t need to.

Any advice? Insight?

Thank you,

John Warren · Answer

@Leo R Arias this is not normal, and you need to move on immediately. The faster you figure out how to get a different contractor to finish the project, the better things will go. The friend of a friend is probably not a horrible human being but is instead not a great businessperson. A lot of contractors struggle with cash flow, and he may have underbid the job. If contractors underbid a job, then they don't have enough money for profit. This means they need the next infusion of money to get materials and subs out there, and their subs are always waiting for payments as well. In the meantime, the GC doesn't have enough to live on so each payment is partially just a way to stay alive.

Without knowing the scope of work, I have no idea how much more you have to go. If this is primarily cosmetic repairs, then you will be ok. If this is a bigger job involving multiple trades, then this could be more challenging to move on from.

Without knowing the scope of work, I have no idea how much more you have to go. If this is primarily cosmetic repairs, then you will be ok. If this is a bigger job involving multiple trades, then this could be more challenging to move on from.

Jonathan Klemm · Answer

Appreciate the callout @Paul De Luca!

Hey @Leo L -  While this shouldn't be "NORMAL" it's sadly not uncommon!  Cashflow is a huge issue for most general contractors including ourselves.  We you are getting paid in arrears it's very hard to front all the money to pay the subs...often times too many projects are taken on ana then Peter is Robbed to pay Paul.

My suggestion is to first READ THE CONTRACT, then based on the contract terms give him a VERY CLEAR & SPECIFIC TIMELINE to rectify the work if it isn't done you  MUST move immediately.

@Chris Seveney is right....you will likely pay way more than you planned to finish the project, but in my opinion, the most important thing to do is stop the bleeding by finishing or cut off the arm completely by selling the property.  BE DECISIVE AND TAKE ACTION!

Paul De Luca · Answer

You definitely need to fire your contractor and end your relationship. Connect with a reputable contractor like @Jonathan Klemm to see if he can help you. Consult your attorney about negotiating the termination of the contract.

Chris Seveney · Answer

@Leo R Arias

I am assuming he is a licensed contractor and you have a contract that has a schedule in it.

First you can file a complaint with the licensing board then terminate him for cause - but it will cost you 3x the $ probably to fix everything

You have been too patient with this.

Honestly I get flack for this, but This is why I never pay a contractor upfront and I know 99% say they won’t do the work and will use the “what if you don’t pay me” - well we have a contract and you can lien my house.

JD Martin · Answer

This is not normal (in fact this is crazy talk) and you should be dumping this contractor, perhaps suing him to recover some of what you've paid, and getting a new contractor. And don't pay contractors up front. At best they get draws based on how much of the job they've finished.

Rys F. · Answer

Did you check his GC license and the licenses of any subs working on the job? You can look this up with the City which makes active and inactive trade licenses available to search. Do you have a recording camera onsite to help you monitor the work when you're not there?

Jacob Sherman · Answer

this would definitely be something to consult with your attorney

General Contractor Negligence or normal?

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