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Updated over 5 years ago on . Most recent reply

User Stats

48
Posts
20
Votes
Tony Cimino
  • Rental Property Investor
  • Omaha, NE
20
Votes |
48
Posts

Question on paying a Fired GC

Tony Cimino
  • Rental Property Investor
  • Omaha, NE
Posted

Question for the group.

Doing my first BRRRR, I had to fire my GC for doing shotty work, missing timelines...etc.

I have gotten new contractors in there to finish the work and they have had to fix a ton of stuff the old GC did wrong. For example:

  • Egress window is not to code by 3 inches
  • Added 2 rooms, and closets are not framed deep enough for a standard hangar to fit (seriously)
  • Added a bathroom, did not properly vent the toilet and shower (Sewage was ventilated to the laundry room....yeah.)
  • Framing in bathroom around toilet was 1 inch off square (now you see why I fired him)

There is a lot more, but you get the point. Further, I put him in my Lowe’s Pro Account to purchase materials, and I would only pay for install.

After I fire him, he hits me with an invoice for the full price of each item he quoted me. I am going through and deducting other contractors cost from his, “price”. For example, if he charged me $8,000 for everything, and the new contractors charge me $3000 just to fix his mess. I am taking $8,0000 - $3000 to pay him $5000.  Then if the materials were $2,000, I take $5000 - $2000, and pay him $3000. I have the invoices and receipts to prove the work done by the new contractors and the materials cost.

My question, could he place a lien on me for the $5,000?  

He did some work, and I will pay him for the work, but I am not paying him for work that he did wrong.

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