All Forum Posts by: Account Closed

If you think that his work to date is not properly performed and if you think you may have to go to court or arbitration eventually then you might consider hiring a local home inspector to document what he's done so far. An inspector with experience in the FHA 203k program should have the ability to determine if his pricing was fair and if the work was done per local and industry standards. Doing so could save you some headaches down the road.

I would spend the time to investigate if he needs a license. Should be able to get a definite answer by calling the local building department. In Michigan, without a license you can retain all payment and sue for any payments made under guise (but usually not worth it). 

If he is legit then worry about the percent of works completed. Sounds like it may be irrelivant because he sucks at money and will want it all and in that case you have to decide if it will be worth defending the case. I wouldn't though because you wind up prob spending at minimum the same and tons of time.

Me in your shoes.... Lock him out. Post a notice of cease work on the door and make him sue you for works completed. Or lein. He will need to be licensed to lein even if the work doesn't require license most likely. However, use your judgement. Is he really a snake? Is he just bad at money and can't afford to finish? Or is he just bad a contracting and didn't stipulate enough progress payments.

But on to the next mountian. Finding a legit contractor to come in under the firing circumstances has its own set of costs. They will probably want to take out the incomplete work (liability reasons). Now the bad news for the property... In my area starting unpermitted work is usually twice the permit fee (afew hundred bucks). Probably wornt have to rip out everything because it doesn't sound structural but your town will make that decision. The building inspector will be your all in the end.

Roofs and drywall don't require permits in my are and it may be the same in your locality. Sounds like a bare bones contract. Shame on you and your contractor for not clarifying specifics. There I assume is no termination of contract stipulation? You can fire him but you will need to pay him for works completed. You both have to agree for what that amount is and use that percentage from the total contract price. Just sounds like he's bad at accounting and not a bad guy. Some folks can swing hammers well but can't balance a checkbook to save their life.

@Edward Kiser

Are there any permits pulled on your property?

Roof without a permit seems pretty suspect at least in my area.

@Account Closed

I'm not an attorney, but hopefully some of this would help:

For the insurance deductible, if it’s spelled out in the contract the deductible is not due until completion, then do just that. You have your end covered on that aspect.

Honestly the verbiage within the signed contract is the biggest determining factor on your rights for termination. I’d re-read the contract to confirm what rights you have, and then have the phone call with him that it was supposed to be completed a month ago, it still isn't completed and that you're going to get someone else, unfortunately you just need to be blunt about it.

Also I’m not sure how it would work since it’s an insurance claim, but possibly notify the insurance company that you’re going to be finding another contractor. 

One last thing, because I’m in the construction management field and deal with finances as well, I like to reduce risk wherever possible and I’d suggest looking into state specific forms to have him sign since you've already paid him: (might need to consult with an attorney for the verbiage, just depends on what you can find online):

• unconditional release of received payments
• receipt-release and indemnity agreement
• a sub-tier/third party release
• lien release form

These would all cover your end for the money you’ve already paid out, so that he can’t come back after you for “lost money”, or if his roofing sub comes back to you saying they were never paid. 

Hope this helps.

EDIT: Forgot to include this before hitting reply, but thank you for serving our country!