Permit expired, contractor walked away, what next?

Question

Hi all,

I have quite a big problem. The GC that I contracted to rehab two properties took the money, finished partially, and then walked away, no longer replying to my calls and texts. On one of the houses, he pulled a building permit for plumbing, and that permit has expired before the bathrooms were finished so inspector did not do the inspection.

I have another guy that can finish out the job, but he is not a GC and cannot pull permits. What should I do? I am planning on selling the house later this year, so my question is would having this record of expired permit affect the sales process? Should I get someone to pull a permit to have the inspector come out and inspect the job once it's done?

Thank you.

Samuel Pavlovcik · Answer

@Allen Li, That sucks about your contractor walking out, I've heard these stories far too often, and it continues to give GC's a bad rep. I noticed you are from Chicago, is the property you are mentioning above located within Chicago as well? I ask because the City of Chicago manages permits very differently than many of the surrounding suburbs or counties.

Based on the fact that you said your GC pulled a permit for the plumbing, I am assuming he pulled an Easy Permit with the City of Chicago. @Moises R Cosme is correct that if this is the case, You as the homeowner can pull the new permit yourself; however, if you needed to pursue a Full Permit Process in cases for projects including new construction, additions, or larger remodels, the City of Chicago requires the permit to be obtained thru a Licensed Architect, Licensed Structural Engineer, or a Permit Expediter.

Since I am assuming this was an Easy Permit for the plumbing, you also don't need any plans to be submitted. What you will need are the following:

- A completed permit application signed by you as the owner, and signed by your GC (If you are going to hire another, otherwise, as the owner you can act as the GC).

- You will need the contact information for your plumber listed on the permit application, and they Must be licensed in the City of Chicago by the time you submit the permit.

- A Letter of Intent from the Licensed Plumber stating that they intend to do the plumbing work at your project address. Note: The address must be listed, and this letter of intent must be Sealed with their IL Plumbers Seal, or it must be notarized.

Pre-COVID19, Easy Permits were obtained by going to the Easy Permit Desk at the 9th floor of the Chicago City Hall building. Last I checked (about 3 weeks ago) the office still wasn't open; however that may have changed or may change soon.

In the meantime they were allowing people to submit for an Easy Permit online using a modified system. See link below for the temporary process:
https://www.chicago.gov/content/dam/city/depts/bldgs/general/EZPERMIT/Interim%20Online%20EPP%20Procedures%2020200319.pdf

Additionally, I would recommend reaching out to Martha Reynoso at the Easy Permit desk, she will help you get things straightened out and let you know of any changes to the current process, or anything specific you might need. I will send you a PM with her email address.

Moises R Cosme · Answer

Allen,

1. As the owner of the property, you can probably pull the permits yourself; this is tricky so be careful, a quick conversation with a clerk at the inspector's office should give you all of the information you need.

2. Discuss the issue with the clerk, if the GC stole your money you can report them.  Since the GC pulled the permit all of the relevant details are at the inspector's office and there are ramifications for a licensee that acts irreponsibly.

3. You need to have the permit cleared, again, talk to a clerk at the inspector's office they will tell what you need to do to close out the permit properly.

4. Yes, you definitely should have permits properly pulled and closed since you plan on selling the house.

If you find this helpful, I would appreciate a vote.  If you think I can help further, feel free to message me.

Mike B. · Answer

It can certainly affect the sale process if you don't close out the permit but it's a pretty easy problem to address. The bigger problem that you want to get in front of is properly vetting your workers so this isn't a continuous problem.

Crystal Smith · Answer

I would do the following:

•  Assuming the contractor is still licensed file a complaint with the Illinois Department of Financial & Professional Regulation. 
• Depending on the location secure the property w/ DAWGS to prevent the contractor from coming back and damaging the property
• If the contractor was using subs you need to figure out if they subs have been paid. If they have not been paid then there's a chance they will put mechanics liens against the property.
• You need a new permit to finish the work. While you can hire someone w/o a license to finish the work, it must still be inspected & someone licensed or working under a license should accompany the inspector. Finishing the work w/ out permit or a passing the inspection puts you at risk of having all the work removed w/ a fine levied against you. It's often less costly to do the right thing
• Regarding the sales process- If a buyer does his due diligence and finds that you haven't passed inspection then yes it will affect the sale.
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Jennie Berger · Answer

Hey @Allen Li. Curious how this all worked out for you? Right now we are in the process of getting the city to respond for a final inspection on one of our rehabs that we pulled an easy permit for. I scheduled this way back on 12/21/20 and the inspection dept still hasn't responded. Been in touch with about 7 different people in various departments, and needless to say, no solution yet. It is incredibly frustrating! Let us know here if and how you resolved your issue and also how the new GC worked out. Also, I reached out to Martha and am hoping she can advise. Hoping it all went well for you. Happy New Year!

Permit expired, contractor walked away, what next?

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