Contract Walked w/Our Money

[Joe White]

We had a general contractor walk off of the job. So far he has been paid $42,920.00 and the work isn't even close to being done. Kitchen cupboards aren't hung, bathrooms aren't tiled and the list goes on.

Basically he got the bid on a very large job he wasn't expecting to get - a 35,000 square foot commercial project. The problem is that is a big job; but also that commercial pays after the work is done and the contractor fronts the material.

So he walked off our job stating he just can't do it and I know he doesn't have the money to issue a refund.

We've submitted this to the State Attorney General's office, ect.

Wondering if anyone has suggestions?

Joe White

[Chris K.]

@Joe White:

I would try to check with his insurance carrier to see if there are any coverage for situations like this. 

I assume the job wasn't bonded. So no help there. 

It might be too late but I would also examine the root cause of the issue. For example, when it comes to fronting the materials, most commercial jobs use the AIA system. That system allows the GC to bill for stored materials on a monthly basis. That being the case, the fact that he has to front the materials for a month should not be an issue. 

Did you hold back retention? If so, that may alleviate the sting a bit. 

Ultimately, you are probably better off looking for a new GC to finish the job. To the extent that you want to pursue a legal action against the old GC, the contract with the new GC would be one item you could point to when trying to establish damages. 

I don't know what your ultimate budget is but I'll be happy to introduce you to a bigger GCs if you PM me the details. It might be too small of a job for them but they certainly know what they are doing. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.