Construction Project Management-Flippers Cancel last minute

[Jen H.]

Hi All, I am project managing my construction crew on a house flip. The investors have been very difficult to work with from the very beginning with grinding us down on our prices to a very very slim profit margin (almost making the job not worth taking but we got so far in deep we accepted any way). We originally asked for a 50% deposit prior to work starting as we have never worked with this particular investor and then we would collect the remaining balance once work has been completed. They had two other bids but decided to go with us because of the quality of our work as showcased in the portfolio we presented to them. Well, they managed to get us down to 25% of deposit (initially they asked for 10%). Then they delayed in providing the deposit to us on Friday even though I had already (stupidly) booked our crew to start work Monday without the signed contract or deposit. After some pushing we finally got the signed and approved itemized bid along with the 25% deposit on Saturday ( 2 days before we start work...) later in the day they asked if we were licensed and bonded. I explained yes however we are not pulling any permits and to save you on costs we are not using our insurance. Furthermore, we don't feel comfortable accepting liability after one of the partners told us they would not be properly capping off exposed live electrical wires in the wall even though we advised them it is a hazard and you cannot just "plaster over it" as he said he would do. He also made mention of jerry rigging the oven gas line(which we also expressed concern over) Then they wanted us to fill out a w9 and I let them know the original bid did not included taxes but that I would have to add that. They didn't get back to me all day until hours later and said they want their deposit back and they were cancelling on us. (48 hours before we are to start a 2 week project) I let them know I would have to talk to our crew as I already gave them the deposit and that they booked out 2 weeks of their schedule to work on this job. They called me back and said ok we will keep you on the job but need to delay the startdate for another week....because we are having some other work done first..... To me this last statement they said sounds like total BS. And my gut tells me they are already going with their other bids to start Monday... So because I don't trust they will keep us on the job or that they will even pay us the remaining balance once work is complete... I asked for an additional 25% deposit since they were delaying the job and expecting our crew to book out another week. They declined and said it's not "industry standard" and they won't pay more until after work has been completed.... Are we about to get scammed here? What is going on??