Incredibly slow contractor

[Elizabeth Seiferth]

Hi all- I would love some advice. We are in the end stages of our first flip. Our contractor has been insanely slow with minimal progress from week to week and already 2 weeks behind their timeline. We should be listed at this point and we have at least another 2 weeks left to get there (no point in fully pulling the cord on this GC at this point). We are about an hour and a half away from the property (it was a cheaper market) so I don’t have the ability to be up there every single day micromanaging the contractor. We have a small payment left on the contract which I am withholding until completion.

We did have to get permits and the city inspector has added work at every inspection so that has caused distractions (necessary ones) along the way.

Our visit to site today was more of the same, I immediately reached out to the GC with photos of every space - interior and exterior - asking how they can claim we will be done in a week when we are clearly not that close. He will be going out to site tomorrow to give me an update on their plan.

Has anyone ever dealt with this type of scenario? Any recommendations to light a fire under their asses and get a bigger crew on site to finish the job?
 

[Evan Polaski]

@Elizabeth Seiferth, this is a cruddy situation.

I personally have not found penalties is either easy to enforce or effective.  Even if you have penalties available in the contract, given your "small payment" left, you may basically be telling the contractor to work for free from here on out (they won't).  And they very well could argue that your change orders due to inspections are what slowed it down so penalties are not applicable, anyways.

I have offered INCENTIVES to finish when I have been in situations closer to yours.  "I will give you $2,000 MORE than I owe you if you finish in the next two weeks, with full C of O". Yes, it costs you more, but at this point, firing them and getting a new person in will very likely cost you more than you owe the current guy, and anyone that is available at the drop of a hat is not likely to be someone you want working on your property, anyways. 

For future reference, I have basically started working with contractors that a VAST majority of bill is due upon completion.  These contractors often cost a bit more, but they tend to be more professional across the board because they a) have a bigger carrot at end and b) have better financial management skills.