Ask the Hive Mind: Contractor Issues

So we signed a contract on April 4, 2014 to have a new barn built for our horses. Thus far, the contractor has blown self-imposed deadline after self-imposed deadline, and now we're almost one year later with a barn that isn't finished.

He has an excuse for everything from permits to weather, but I'm sick of looking at a partially finished barn. During the cold weather he said his guys couldn't do anything because the air tools freeze up (nobody has a hammer apparently) and today he shows up and says he can't do anything until the ground is thawed so he can finally pour the floor. Nothing happened on the barn in between those excuses.

I don't even know what I can do here. He even said this wasn't going to be a spring thing back in December. Well. Here we are.

first, has any money changed hands?

seconds, have any commitment on the property been made, like agreeing to sign a builders lien or something ?

Whenever I read stuff like this, it makes me want to pack my bags and be an itinerant contractor, traveling around the country helping build stuff for you guys.

I am sorry you are having these troubles.

What percentage have you paid, and what percentage is complete? Who owes who at this point?

Note: pouring concrete on frozen dirt is a bad idea, though there are ways to combat this and get it done. But, they cost money (I am assuming he doesn't want to spend).

We've paid him about $40k so far. The contract is written so money is due based on certain things being accomplished - like the roof and shingles. I don't believe we've signed anything like a builders lien.

No money is owed right now. We have a shell of a barn with no interior and no floor. We're about halfway there. I'm doing the electrical myself, but with no walls I can't run any wires.

I'm aware of the struggles with concrete, but I know all the workarounds after being a construction worker myself and having a father who has been in the business for decades. Right now we have a layer of hay and tarps on the ground to try to insulate. Yesterday was in the 40's and sunny. Today - same thing. Tomorrow 50's and sunny.

Sounds like it is time to terminate the contract.

If those "self imposed" deadlines are written, then he has already breached the contract. If there is anything in the contract about deadlines, milestones, "timeliness" or "workmanlike manner", he has likely breached the contract.

Tell him you are unsatisfied, and that the time has come. Try to end on a handshake, with the understanding that there will be no bad will.

If he squirms, tell him he can finish, but that your expectation is that he man the job every single day. If he can't do that, he will be in breach of your agreement. Document EVERYTHING.

Contractors don't like legal stuff, and they don't like people talking bad about them.

Good luck!

If you do terminate, make sure you get all of the subcontractors and vendors and material suppliers to sign off that they have been paid in full.

If you don't, they will put liens on your property.

This guy is living hand to mouth. I doubt he has paid everyone.

BTW, small contractors stink at documenting anything.

SVreX wrote: If you do terminate, make sure you get all of the subcontractors and vendors and material suppliers to sign off that they have been paid in full. If you don't, they will put liens on your property. This guy is living hand to mouth. I doubt he has paid everyone.

This! I would ask him for lien waivers from the subs now before the rest of this is discussed. Blame it on the bank wanting it for your mortgage note or something. Once this guy thinks something is not going well he may be the hardest person to find on the planet.

DaveEstey wrote: So we signed a contract on April 4, 2014 to have a new barn built for our horses.

If the terms of the contract are that he build a barn and you pay him; he builds it and you refuse to pay, how long would he wait to drag you into court?

He's not holding up his end of the deal. Have a lawyer write him a nice letter explaining why he is terminated and free of his contractual obligation and include directions for returning the money.

Move on. You still need a barn.

In reply to itsarebuild:

Good point on the timing. Get the waivers first. (In fact, you probably should have been getting the waivers each time before releasing the checks, but no one ever does).

It is possible that the $40K you paid him went in his pocket. If so, the vendors whose labor and materials are on your property can file a lien against you.

Wow a construction project falling behind schedule? Unheard of. I've spent the past 25 years in the construction industry and I've only experienced a handful of jobs that finished on time. It sounds like your guy is jumping from job to job just doing enough at each to keep the money flowing. That's a pretty common ploy among small contractors. Before you fire him I suggest you get someone else to look at the job. You want to make sure that there's enough money left to finish the barn before cutting the original contractor loose. A year is way too long for a fairly small project. The best contractors know that the way to make money is to get on and off the job as fast as possible while still doing decent work so you don't have warranty issues.

I think 914Driver has nailed it.

He has failed to fulfill his part of the contract. He owes you $40K.

In reply to SVreX:

In Canada the general contractor is required to submit a signed Statutory Declaration with every progress draw. It basically states that the contractor has paid his suppliers and subcontractors up to date. If you lie and get caught you go to jail. I know that you don't have the exact same thing in the States but it's a similar process. I'd get him to sign something along those lines before getting rid of him.

In reply to Wayslow:

He's not in Canada.

Though it varies state by state (and I am not familiar with MA), generally the owner is responsible for insuring this. It's his property. It is often handled by the lender, because they have a financial stake in the project.

But it is very frequently overlooked.

I am only suggesting he double check that bills have been paid.

Have you talked to his trades and his references? He may have the best intentions, but too busy or disorganized, in which case he may have to be persuaded that your job is more important than he thinks.

If you have effectively just a pole barn at this point there will only be a couple trades involved, or maybe just the excavator and a dump truck. But if you piss him off he will lien your property and rightly or wrongly, it will a difficult court process to have it removed. Best thing is to spend $500.00 on a lawyers letter and strongly encourage him to get to work, but without causing friction that would cause him to leave altogether. You will be right, but you will have a half built barn and no money.

SVreX wrote: Whenever I read stuff like this, it makes me want to pack my bags and be an itinerant contractor, traveling around the country helping build stuff for you guys.

Would you? I need to do a serious renovation to my house and stories like this as well as my mother's painful experiences trying to get simple stuff done at her house is the #1 reason I've procrastinated... While I plan to do as much as possible myself (pretty much everything inside), there are still a couple of things I'll have to farm out: new siding, windows (NOT replacement windows) and a rear garage door opening as well as a new HVAC system.

Part of me wishes I could get the contractor my ex- used for the shell construction of her addition. They did all the exterior stuff and were done pretty quickly.

Right now, I'm considering being my own GC and roping my mother (retired) into being the on-site super while I'm at work.

In reply to Ian F:

I would, but don't think there is enough work for me!

I need someone to fix my porch!

In reply to Lesley:

I'd volunteer but the only thing I've ever built well using wood was a fire.

Dave I deal with this stuff for a living. Drop me a pm if you want to chat. I can get replacement contractors I deal with the contractual stuff all the time. Hell I will be writing one for a 1.4m job tomorow. If your contract is AIA based that would be a big help as those I have practically committed to memory. If not there are specific laws here in ma that you can use to help push things along.

Maybe not having a lawyer involved yet but instead having your construction manager start dealing with the contractor would push him along. Lawyer letters tend to make contractors recoil especially if they are financially stretched thin.

The short of it is the contractor needs to be shown that it is in his best interest to expedite the project.

SVreX wrote: Whenever I read stuff like this, it makes me want to pack my bags and be an itinerant contractor, traveling around the country helping build stuff for you guys.

Yeah, I really don't understand the behavior. Don't get me wrong, I'm a lazy procrastinating motherberkeleyer, sometimes at levels comparable to Jeff Lebowski. However, that's my personal life, when I agree to somebody paying me cash money up front to do something, it's getting done, preferably yesterday, come hell or high water.

It is a vicious circle to be as contractor and ride the spiral down of using deposits from new work to pay bills from jobs long since finished, and then not having the money to buy materials for the latest one so you grab anything to get the next deposit to keep the wheels turning and then you have a slow week and the cash flow dries up and your suppliers cut you off and you stop paying your wage burden and tax installments and then you bounce a paycheck to your top guy and he quits and then...and then.... and then...

Seen it so many times. And almost been there myself. Anyone who thinks running a business is easy should just go jump in the lake.

In reply to dean1484:

I kind of doubt Dave has an AIA contract, or a Construction Manager.

bearmtnmartin wrote: Anyone who thinks running a business is easy should just go jump in the lake.

QFT

40k for half a barn with no floor, how big is it going to be? that sounds like it should build the whole thing start to finish if you're doing electric.

I hate hearing stories of contractor trouble, as I have had to go in and fix or finish so much over the years, or go do jobs that should have been done 10 years ago because 15 years ago they had a bad experience with a contractor and were scared to call anyone.

I gather at this point you need to make some decisions. Big one is - is what was done worth 40k to you? If not, do you feel comfortable asking for your money back, be it some or all? If you were to talk this guy into getting on stuff right away, are you or would you ever be comfortable with him working on your property again having blown you off so long already? If me, I wouldn't want to see the guy again except for him to hand me cash or bank draft check of the difference between what I paid and the value I put on the work that has been performed, and to get him to sign off any lien rights and get signed papers from all subs stating the same. I would not go after him for 40k as he has put time and $ into the project and that would not be fair, nobody knows his circumstances. I know a guy who kept falling farther behind and not calling people back, but got enough done to keep up appearances. Turned out he was REALLY sick and didn't want people to find out.

Is it to a point that you can part ways with him and instead of getting another general be the general yourself? IE - contract with a concrete place for the floor, get a framer to do your walls so you can wire it, and get someone to do whatever else needs done(siding, stalls?). I know it's a headache and we get paid to coordinate everything so people don't have to, but it would save you some $ and give you some control over the process.