Contractor Issues Project Timeline is Too Long

[Chris Sackinger]

Hi BP Community-

I need some advise on a current rehab that is going south. Most of these issues are self-inflicted but I need help on next steps.

First, my contractor and I have a handshake agreement on the rehab of my house. We have an agreed price and scope but there are no time penalties and time is bleeding right now. The contractor has taken over 2 months to preform the work to date and I feel trapped with him now. I would like to pressure the contractor to finish the work but do not feel I have much leverage.

Second, I would like to move on from him after this week but am concerned about a lien if I fire him and we can agree on a price for his services so far.

Besides the obvious of taking care of my business better in the future, how would you handle this situation? Thanks for any and all ideas.

[Nicole Pettis]

@Chris Sackinger

Why do you feel you don't have much leverage? Have you paid him up front for everything? Or is he caught up on his draw/payments? Why is the timeline over 2 months? Is the deadline something you settled on or is something you both discussed and agreed upon? Do you like him as a contractor or are you just ready to move on?

If you still owe him money and you plan on letting him go, I would have him sign the lien waiver first, then pay him what's left and let him go. If he doesn't want to sign the lien waiver, then he doesn't get paid. And if he tries to sue you, you have proof of payment though the checks.

Then move on to the next one, however keep in mind, when moving on with a new contractor it will cost you time as well, because they can't always start right away and then they have their way of doing things, so on and so forth, so where you might think you'll save time in the end, it might cost you. 

Point being if you are okay with your current contractor, but frustrated with the timeline, I would go ahead a create a SOW/contract with the new deadline and explain to him that it is only fair that you both are clear on expectations. Based on what's left you feel that the rehab should be done on this date. If not then you will have to start charging X amount of dollars every day after(only if the delay's were of his causing) you can't fault him if other subs delaying him doing his work.

But its never too late to get a contract together. Just let him know that this is necessary for your business and it protects both of you and helps with communication and expectations. If he is a professional he will understand that. If not, then you are better off without him.