My husband built a small home last year. When it came to get paid, the customers by-passed my husband called in multiple inspectors, and back bit him to the subs and did not allow him to be present for the final. (All inspections had been done throughout the project, and my husband is careful to ask questions first and to follow codes, etc.) So when we were expecting a final payment, we got a list of hundreds of accusations about why they were dissatisfied, attacking my husband’s work, ethics, and character. There were a few fixable complaints that were legitimate, but for the most part it was outrageous things not in the contract, add ons supplied by other contractors, or that the owner changed his mind about or were decided on during construction. These customers were wonderful during construction, so we feel it is just about money.
There are no real problems with the home, but the owners refuse to be satisfied or allow us to pay them a settlement without future liability. (They want our bond and the money they owe us.) We haved tried to deal with them and have honestly laid out our hearts to them. We have fixed the few true complaints and offered to pay for other things they don’t like, but they have told the ROC that we haven’t done anything. At this point we are at a stalemate and waiting for a ROC hearing to be scheduled. (It has been months since the finals.) We do have dozens of references from other customers. We have written proof that these customers are liars. The contract is also on our side, and we have an LLC to protect our personal assets. Our business assest are very small. We feel sure that no matter how much work we do for them they will still go for the bond. Since court fees can be a lot higher than what they owe us, even if we win, it could cost us 40K and 2 years of our lives if this goes to civil court. We understand it is hard to keep your license and buy a new bond, even if it is paid back. My husband is an excellent carpenter, does quality work and pays his bills, etc.
What is the right thing to do? What would you do?
Edited 4/1/2007 12:27 am ET by Teni
Replies
Teni.. you have no profile.. so i'm just guessing... are you in Canada ?
i don't know the law there .. but i assume it is about the same as here.. anyone who wants to sue you can sue you.. and even if you win, you lose
all my contracts have an Arbitration Clause which means ( supposedly ) that disputes get decided by an Arbitrator.. i'll take my chances with an Arbitrator.. but i have no confidence in getting justice in a court.....two years , lot's of money... and it's always a crap-shoot
sounds like you need a solicitor who is versed and competent in construction law
it sounds like you are over a barrel..... at this point i wouldn't do any more to atttmpt to satisfy them.. but you need a solicitor to send them written notice and put you in the best position to defend your assets ( bond & license )
I dont wanta address the biz part but this happens to all of us sooner or later, Do not take it personally and feel bad about yourselfs, Easy to say i know. I can pick apart anyones work but never do, sounds like you had some " heros" backstabbing you. I would write a letter asking for the "heros: to put it in writing how your work was no good, Thats just a bluff to get out of paying you. Not sure of the laws but i would talk to the BI and insist no CO be given, If a CO is given they have oked it enough to move in, If it goes to court they have to explain that. Right now you may have some leverage to keep them from moving in if the CO has not been given, Have your husband talk to the BI and if the lic laws are such where you live he may stop them from moving in till they sign off, When they sign off you have them. Sorry for rambling this happened to me a long time ago, When they did the same thing it stopped there morgage from going through, I had to be paid in full before they released the money
Bobbys,
This was a cash job. There is no bank involved. The new Building Inspectors know they have been living in the home on vacation time for over a year. But the law states that only owner builders can get a Occupancy in our state. The county is not following the laws or codes themselves. Just demanding whatever the home owner wants even though it wasn't paid for or in contract. (The contract does state that they would pay for anything extra county inspectors may require, though.) The original final found nothing wrong, they had to call in two more inspectors before they were able to write up any flaws, and those have been fixed. It is more of a "I don't like this" type of problem.
We are feeling a bit of bitterness too.
Edited 4/1/2007 12:28 am ET by Teni
.>my husband's work, ethics, and character.< When i was in court i found none of that holds up the judge dismisses that kinda stuff right away, I know what you feel about being bitter, I just remind myself of the thousands of satisfied clients but i do dwell on these kind to much.
I have no idea what the ROC is. You do need a good construction defect lawyer to go through everything if you don't have one. And you need to file liens if it is not too late..
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A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
Thanks for the reply Bill,
It is too late to file liens.
We talked to two lawyers. They just say that there is no winning, even if we are found to be right. We still lose, it is just a matter of how much we lose.
The ROC is the Registrar of Contractors.
So the question is if we should try to defend the bond or let it go.
I really can't answer your question. And I don't know the ramifications of forieting your bond is.Again I think that this time for a good lawyer to go through all of your rights and what the options are.That is different than suing them in court..
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A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
Now you know why a lot of builders won't work cash jobs.
blue"...
keep looking for customers who want to hire YOU.. all the rest are looking for commodities.. are you a commodity ?... if you get sucked into "free estimates" and "soliciting bids"... then you are a commodity... if your operation is set up to compete as a commodity, then have at it..... but be prepared to keep your margins low and your overhead high...."
From the best of TauntonU.
It's too bad the client and you can't work things out.
If you default on the bond your rates in the future will skyrocket.
High court fees are a good reason to specify binding arbitration up front, but perhaps you can offer that to 'em in the hopes that they think their case is stronger than yours.
In the mean time I'd try to organize any documentation you have and try to gather any and all evidence to support your side.
Sounds like a good situation to have a consulation with a good attorny with experience in this area for better advice.
Best of luck,
Beer was created so carpenters wouldn't rule the world.