I hired a contractor to do a complete remodel of my condo. It should have finished in one month but it’s now three weeks past the due date and they are just dragging their feet. There were many days where no one showed up to work. My condo just sat there vacant. I do not have a penalty clause which I should have included in the project. They are not licensed which they told me they were. I only have an invoice as a contract. They promised me 2 times already that it would be done but never did. I have a grand left to pay them which I will withhold until they are 100% done. The place is about 80% done. I want them to finish up my place but felt like I have nothing to pressure them with. Is there anything I can threatened them with to make them want to rush on my job like suing them or lien their house, etc? Any advice would be appreciated.
You can file a formal complaint with your states attorny general. Its free and they probably have a convient website with which you can submit your complaint. They will send a copy of it to the contractor and attempt to get him to resolve it.
You can get your own attorney and sue. I would go for the full amount you paid him. The total amount. I bet he finds out hes not entitled to charge for his work if he isnt liscenced.
You can just not pay him the last draw, hire somone else to finish the project, and forget about it. You will live longer.
If the person or company is not licensed, make sure that the right permits and other details were handled. Otherwise you might have problems when you eventually sell. You might need to have the work verified to make sure it was done correctly (electrical, etc).
Looks like they’ve moved on to new downpayments, which are higher than your last draw (which is likely smaller than what it’ll cost you to put another person into the deal).
What John wrote about the permits - it really depends on where you are. In Atlanta for example, there’s not a problem if work was done without permit - other than bad work being found out by the buyer’s inspector.
A couple of thoughts to keep in the back of your mind the next time: first, it’s always wise to have a written contract. Right now I doubt you could win a lawsuit, it would likely turn into a he said/she said. In that contract you should specify how payment is to be made. These guys aren’t coming back because the $1000 you have left isn’t worth the work they have left. That’s because you paid too much too soon. Personally, my preference is to pay nothing until the end if the project is a week or two. I buy the materials. So really, when you think about it, waiting a week or two for a check for their work is similar to what most people experience at their jobs. If the job is long enough, I’ll pay a draw at some point. But I try not to ever fully pay for where they are in the project…because that’s when they disappear. And trust me, the next guy will cost more to finish an unfinished project. You need to pay in a way that keeps the contractor on the job because he can’t afford to walk away. One more thing, if a contractor just didn’t show on my project, I’m done with him. That should be spelled out in the contract. Life is way too short to chase these guys.
use a written contract (yours) spelling out payment terms and never let the payments get ahead of the work completed.
In commercial up-fits we retain 10% of each draw in escrow, basically the contractor’s profit. Small jobs are typically paid in three draws, which accomplishes the same purpose, keeping their attention until the work is done.
Hope the work didn’t include anything that should have had an inspection (e.g. wiring, plumbing, etc.).