Builder is 8 months behind completion

[RNaval]

What is the name of your state? NY

I'm in contract for $500K for a new construction of a summer house - started March, 2004 - contract states the builder will complete the project by Sept, 2004 with an absolute deadline of Dec, 2004. It's now April, 2004 and house is only 75% complete. I've already paid $400K. There is no penalty clause specified in the contract for being late on the completion. I probably will be able to complete the job with another contractor with the remaining $100K.

What steps should I take in getting out of the contract with the current builder or to pressure him to finish the job? BTW, I'm still on cordial terms with the builder.

Any advice on this is greatly appreciated.

Thanks...RN

 

[John Se]

Why isnt the house finished

can you answer "Why isnt the house finished"?. Also why do you think you could finish any sooner than the builder. Also dont forget since you wont pay until the house is finished then the builder has incentive to finish. How were the progress payments set up?

 

[RNaval]

Because the builder has not worked on it - during the last 6 months only the sheetrock and trim has been completed. The builder works on it every two months or so.

The contract calls for each payment to the builder as each itemized item is completed - however, I did not realize that most of the profit for the builder has already been taken and the rest of the items to be completed are of little profit to the builder. This is what I feel is happening.

I think that I can finish it sooner because I can either hire another contractor or act as the GC and get it done. I do beleive that I can get the job done and under the $100K that I still owe to the builder for the remaining items.

What did you mean by not pay until the job is finished. Can I do that even though previous payments were made after completion of specific tasks as specified on the contract?

Thanks...RN

 

[John Se]

Sitll 100 K Owed

I mean that there is still 100 K for the contractor to earn on the job, he wont get it until he finishes the job. Ask him if he wants to quit. Maybe he will, Usually bankers are not comfortable with the contractor quitting and may call your loan. If you think you can finish up the job any sooner then ask the builder to quit.

 

[RNaval]

His profit would be little on the remaining $100K in pending payments. There's no bank involved, it was a cash deal.

He has today sent me a fax asking me to pay the suppliers and contractors directly. I guess that confirms it then that he's used up the cash flow in another venture.

What do you suggest I do regarding this request?

Thanks...RN

 

[John Se]

Ask him to quit

Ask him to quit, If he does then your in the clear, I assume all completed work has been paid for. I bet he has not paid some subs? they will be pissed but they cant sue you since they contracted with the GC. Then go finish your house. Oh yeah I think you need professional representation at this point. Maybe you can fire the GC for Breach.

 

[RNaval]

Got representation, filed the lawsuit against the builder - his corp has been served, waiting to server him personally. Builder is a year and a half behind on completing this job. He has taken his profit already - probably the reason why he is not finishing as he would have to spend out of pocket to finish the house. I still owe him about $20K but it would cost me roughly $60K to finish it myself.

Do I have to wait for the builder's response to the charges? Can I start to finish the house myself after sending him some sort of a notification?

...RN

 

[HomeGuru]

Got representation, filed the lawsuit against the builder - his corp has been served, waiting to server him personally. Builder is a year and a half behind on completing this job. He has taken his profit already - probably the reason why he is not finishing as he would have to spend out of pocket to finish the house. I still owe him about $20K but it would cost me roughly $60K to finish it myself.

Do I have to wait for the builder's response to the charges? Can I start to finish the house myself after sending him some sort of a notification?

...RN

**A: ask your attorney.

 

[RNaval]

I already have asked- but interested in hearing other opinions on this.

 

[HomeGuru]

I already have asked- but interested in hearing other opinions on this.

**A: ok then what did your attorney tell you?

 

[ENASNI]

I already have asked- but interested in hearing other opinions on this.

Yeah, we are interested in hearing your attorney's opinion on this.

 

[acmb05]

What is the name of your state? NY

I'm in contract for $500K for a new construction of a summer house - started March, 2004 - contract states the builder will complete the project by Sept, 2004 with an absolute deadline of Dec, 2004. It's now April, 2004 and house is only 75% complete. I've already paid $400K. There is no penalty clause specified in the contract for being late on the completion. I probably will be able to complete the job with another contractor with the remaining $100K.

What steps should I take in getting out of the contract with the current builder or to pressure him to finish the job? BTW, I'm still on cordial terms with the builder.

Any advice on this is greatly appreciated.

Thanks...RN

Pardon me while I laugh for a minute. Ok contractor is 4 months(possibly up to7 months) behind schedule, and you have no penalty clause for not finishing on time in your contract. And your still on cordial terms.

Now it is 10 months later

Got representation, filed the lawsuit against the builder - his corp has been served, waiting to server him personally. Builder is a year and a half behind on completing this job. He has taken his profit already - probably the reason why he is not finishing as he would have to spend out of pocket to finish the house. I still owe him about $20K but it would cost me roughly $60K to finish it myself.

Do I have to wait for the builder's response to the charges? Can I start to finish the house myself after sending him some sort of a notification?

You have given the guy another 80k for work and you still dont have your new home yet.

As of the first post you still owed him 100k and it would take about 100k to finish the house. Now you still owe him 20k but it will take another 60k to finish it. So in the last 10 months you really have not done anything but hand this man more money. Dude you deserved to get snookered.

 

[RNaval]

Attorney says - affidavits have come in for serving the builder's various corps and him personally, let's wait to hear from the builder's attorney (30 days or so) who will definitely be more reasonable.

If not, we need to get a restraining order against the builder prior to finishing the construction ourselves which will allow us to continue with the case and finish the house.

ACMB05,

Maybe I didn't clarify enough or I don't think you understood the posts accurately. All in all, It's not as bad as you make it out to be - the worst that can happen is that I'm out 60K, maybe, but the property has appreciated 700K to 800K in value.

...RN