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Updated about 5 years ago on . Most recent reply

User Stats

280
Posts
171
Votes
NA Jones
  • Flipper
  • Port Deposit, MD
171
Votes |
280
Posts

Firing a lousy contractor

NA Jones
  • Flipper
  • Port Deposit, MD
Posted

Hi BP!  I'm going to search the forums for similar discussions, just looking for some advise...  

We're part way through our first flip and have had decent luck so far getting the right guys in place to do the job, except for the plumbing.  We signed a work authorization for 6k with a plumber to complete 3 tasks.  Fast forward a month and a half later, he has done about 70% of one of the three tasks and the relationship has soured.  Multiple no call no shows, won't return calls, has a million and one reasons why he can't do the things he says he's gonna do...  the last conversation with him ended with him yelling at my husband, blaming us entirely for all of his shortcomings, said he's "out of pocket from here on out because we've cost him the whole 6k" to do what he's done so far.  I understand that we are inexperienced and therefore probably difficult to work with, but all of our other contractors have handled it professionally so far.

I guess the options here are try to repair the relationship and get him to finish the job or cut him loose and find someone better.  I'm leaning towards the latter.

Here's where the inexperience shines through as well - I'm not sure what our options are regarding cutting him loose.  Are we on the line for the full 6k even though he did less than half the work authorized?  The quote was itemized - 2k for the line, 3k for the supply lines and water heater, and 1k for the finish..  he's only done 70% of the 3k item but claiming his costs have been 6k thus far (which is a load of crap.)  Should we try and negotiate with him?  Should we send him a check for what we feel we should pay him (heck I'll give him the full 3k) with a letter that says "if you cash this check you agree that this matter is settled"?  What would you do?

Most Popular Reply

User Stats

82
Posts
167
Votes
Alex Applebee
  • Investor
  • Versailles, ky
167
Votes |
82
Posts
Alex Applebee
  • Investor
  • Versailles, ky
Replied

I've learned the hard way, by the time they are no-showing and you are wondering if you should fire them, you probably should have fired them long ago. Anyways, looks like you got great advice on this thread. DO NOT let your project be held hostage by flaky workers.

One thing I have learned. I never give anyone very much work, and never hint at more work being possible if they do a good job. I give a small piece of the project to a person. If they do well, I will give a little bit more. Once they start slipping it is easy to get rid of them and bring someone else in for the next portion. Even guys that I have used multiple times I still only parcel out small projects at a time. This seems tedious, but EVERY time I have given someone a larger project they stop being hungry for my work and quality or speed slips. So for a plumber I would start by the first and smallest step in the bathroom, and as he has proved himself and is wrapping that up, trickle out a little more work. I don't care if the sub doesn't like it that way. I am not here to be friends with them and they work for me.  I started out trying to be nice to my thinking that if they like me they will work harder and not rip me and my project off. HAHAHA! No.

Let me rant on paperwork if you don't mind. Remember, as others have said, always have a paper trail, hard deadlines, DOCUMENT. I took a page from my days working in hospitals where we charted EVERYTHING, and if it wasn't on paper, it didn't happen. Let them hang themselves with paperwork. I have gone from using just a basic scope of work and independent contractor form to using a very detailed scope of work that includes agreed upon fines for missed deadlines and a messy jobsite, independent contractor form, contractor contact information sheet (address, email, phone), a "payment receipt form" every time I pay them they sign, a "change of work order," and a form that states that they understand all the forms they are signing. Every page is initialed by them so that we aren't playing that game of "I didn't see that". Photographs and text communication is your friend. I intentionally scare them with paperwork right up front. There are always 20 more subs to take this ones place if they wont sign, and I'll tell them that if they complain. I went from having nightmare workers with messy job site, wanting $$ for unfinished work, arguing about what costs are, to almost no problems. Best of luck! Hardest part of flipping is the subcontractors. 

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