Having problem with contractor again. please comment

[Nate Wong]

I hired a general contractor for replacing roof, remodel kitchen and bathroom along with painting and some other work. the whole project is about $ 65k which include materials and labor with a payment schedule . he's been very slow and for three months not getting much done due to he's having a few jobs at the same time . I was very upset with hes performance. they are on the job site for only couple of hours a day and sometimes not even there. Yesterday he tried to ask for $ 12k payment which I disagree due to his performance . According to the schedule of payment on the contract I provided to him , I basically do not need to pay yet . I have paid him $ 25k , and he said I need to pay him or he might stop the work and he said he used all $ 25k for materials and even he stops the work I have to right to complain to the contractor's board due to he has the receipts for the materials . My question is does he has the right for money even we have the contract with payment schedule saying t after what is done and pay how much?

what is the best to do if you were me?

[J Scott]

Originally posted by Nate Wong:

why would I need to pay him whatever he ask, then there's no meaning of contract and payment schedule.

That's true...so, why don't you just pay him based on the contract and payment schedule.

I'm under the impression that the contract wasn't written in such a way as to make it clear what happens in this situation. If that's the case, then you are as much at fault as the contractor. And the way to make it right is to pay the contractor what you owe him for the materials already purchased and the work completed.

As for materials, have him go through the receipts with you and point out where all the materials either were used or where they are for you to use later. If he can't adequately explain where certain materials are (or were used for), don't pay him for those. But, if he can explain what they were used for or show you where they are for your future use, pay him.

As for labor, pay him based on what was completed. If you agreed to pay him $1000 for installing cabinets and he's about half-way finished, pay him $500. If you agreed to pay him $1000 for installing 20 doors and he installed 5 of them, pay him $250. Do that for every line item on the contract.

Most likely, it will cost you more to bring in another contractor to finish the work than it would have cost you to have this guy do it, but consider it a lesson learned and don't make the same mistakes next time.

Some lessons:

- Have a detailed contract
- Have a detailed schedule
- Have a reasonable penalty for missing the schedule
- Have change orders in writing and agree on how they affect the schedule
- Buy materials yourself or at least keep track of materials purchased
- Don't pay large sums for materials upfront, unless they need to be purchased upfront
- Check references before hiring a contractor
- Don't give a new contractor a big job
- Don't expect an individual contractor to get a lot done quickly
- At the first sign of trouble, cut things off and come to a fair agreement

We've all been in this situation before, and the best thing you can do is to consider it a learning experience. I've certainly been in the situation, and from my perspective, it was ALL MY FAULT. It's my business, and my project, and if anything goes wrong, it's because I wasn't adequately prepared. In this case, you weren't adequately prepared.