Dispute with Home Improvement Contractor

[dc_soni]

What is the name of your state (only U.S. law)? NJ

Detais:
1. We, home owners signed contract with NJ based Construction company on 03/16/08. Total project cost is 159,000. As per contract, we paid 15% at signing of the contract. As per contract, contractor has mentioned to finish project within 5 months, permitting bad weather, delay due to unforeseen condition like unexpected changes to structure etc.

2. As stated in contract, we paid 40% when work started. contractor has made progress after 40% of this payment has been made, demolition was done, framing was done.

3. As stated in contract, we paid another 20% upon start of HVAC, plumbing and electric work.

4. As stated in contract, we paid another 20% upon start of Walls, and Flooring, at this stage 95% of the total project cost has already been collected by Contractor [By last week of June], till this day, Contractor was fine and progressing very well. Btw, walls and flooring work never started after they collected this portion of 20%.

5. Immediately after they collected 95% of the total project cost, contractorhas told us we have some issue so we need to talk to Architect, get updated drawing and resubmit it to the township [This has added additional 4 weeks to the project, whole July]. During this time frame, we have requested contractor to start other work but instead of resuming work,. Contractor came up with first surprise for us, extra cost which we have never imagined before, there was no communication on items described in email from contractor, contractor emailed us that we need to pay approximately $13,000 for extras which was never communicated before nor discussed with us. We kept calling/sending emails to contractor about starting other work because this project is very big, there was no response from contrctor.

6. We had no option other then agreeing to pay extra cost, so we agreed to pay $7000 [By second week of August], and contractor did agree/compromise on this number as per email from Sam in second week of August.
7.After we paid $7000 as described in number 6 above [by 2nd week of Aug], we requested contractor to resume work. As per contractor, they have to get back to sub contractors and get the dates from them and let us know, we lost 2 weeks just because subs were not available, contractor send us email that Plumber will be available within 2 days, plumber came did some work for few hours here and there, lot of days have been wasted by contractor to respond to our requests to get back to work.
8.
Upon several requests, contractor managed to send workers, but only one worker was coming to do the job for few hours. During work in the foyer, contractor has determined that we have some issue in the living room, we will have to call our Architect, get ne drawing and submit it to township again.
Sagging beam in living room needed to be replaced with some other additional work required to support stairs in the foyer. contractor gave us estimate of $11,800 which we [home owner and contractor] agreed on $9800. we paid $9800 in advance.
After we paid $9800 full payment in advance, contractor has started sending workers to start working on this beam work in living room. During this time period, contractor has sent us another surprise over week ending 19th Oct'08 - and this time Extra costs for which nobody in the world can dream other than contractor, email had an attachment with all variety of extra costs. It contains some costs that does Not even make sense, costs he mentioned is completely illegitimate. Its very clear that contractor is just taking an advantage our situation [visitors from home country, small kids at home]. He also mentioned about vacating house which is not possible, we have a big house and so far we have managed in extra rooms. contractor allowed us to manage before when demolition was going on and now when demolition is already done, whole framing is done, they are asking us to vacate the house which is not fair at all, contractor just wants some extra illegitimate money from us.

9. We have tried our best to bring back contractor to work, but we could not succeed. We desperately need help to resolve this issue as soon as possible as we can not sleep because of continuous harrasments by contractor, and we have lost lot during last 4 months because of contractor. The amount we paid [95% of total project cost, plus 100% of all extrax mentioned in 6 and 8 above] is Not matching to the amount of work done by contractor [hardly 55% of the work is finished.]What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

[HomeGuru]

Originally Posted by dc_soni

What is the name of your state (only U.S. law)? NJ

Detais:
1. We, home owners signed contract with NJ based Construction company on 03/16/08. Total project cost is 159,000. As per contract, we paid 15% at signing of the contract. As per contract, contractor has mentioned to finish project within 5 months, permitting bad weather, delay due to unforeseen condition like unexpected changes to structure etc.

2. As stated in contract, we paid 40% when work started. contractor has made progress after 40% of this payment has been made, demolition was done, framing was done.

3. As stated in contract, we paid another 20% upon start of HVAC, plumbing and electric work.

4. As stated in contract, we paid another 20% upon start of Walls, and Flooring, at this stage 95% of the total project cost has already been collected by Contractor [By last week of June], till this day, Contractor was fine and progressing very well. Btw, walls and flooring work never started after they collected this portion of 20%.

5. Immediately after they collected 95% of the total project cost, contractorhas told us we have some issue so we need to talk to Architect, get updated drawing and resubmit it to the township [This has added additional 4 weeks to the project, whole July]. During this time frame, we have requested contractor to start other work but instead of resuming work,. Contractor came up with first surprise for us, extra cost which we have never imagined before, there was no communication on items described in email from contractor, contractor emailed us that we need to pay approximately $13,000 for extras which was never communicated before nor discussed with us. We kept calling/sending emails to contractor about starting other work because this project is very big, there was no response from contrctor.

6. We had no option other then agreeing to pay extra cost, so we agreed to pay $7000 [By second week of August], and contractor did agree/compromise on this number as per email from Sam in second week of August.
7.After we paid $7000 as described in number 6 above [by 2nd week of Aug], we requested contractor to resume work. As per contractor, they have to get back to sub contractors and get the dates from them and let us know, we lost 2 weeks just because subs were not available, contractor send us email that Plumber will be available within 2 days, plumber came did some work for few hours here and there, lot of days have been wasted by contractor to respond to our requests to get back to work.
8.
Upon several requests, contractor managed to send workers, but only one worker was coming to do the job for few hours. During work in the foyer, contractor has determined that we have some issue in the living room, we will have to call our Architect, get ne drawing and submit it to township again.
Sagging beam in living room needed to be replaced with some other additional work required to support stairs in the foyer. contractor gave us estimate of $11,800 which we [home owner and contractor] agreed on $9800. we paid $9800 in advance.
After we paid $9800 full payment in advance, contractor has started sending workers to start working on this beam work in living room. During this time period, contractor has sent us another surprise over week ending 19th Oct'08 - and this time Extra costs for which nobody in the world can dream other than contractor, email had an attachment with all variety of extra costs. It contains some costs that does Not even make sense, costs he mentioned is completely illegitimate. Its very clear that contractor is just taking an advantage our situation [visitors from home country, small kids at home]. He also mentioned about vacating house which is not possible, we have a big house and so far we have managed in extra rooms. contractor allowed us to manage before when demolition was going on and now when demolition is already done, whole framing is done, they are asking us to vacate the house which is not fair at all, contractor just wants some extra illegitimate money from us.

9. We have tried our best to bring back contractor to work, but we could not succeed. We desperately need help to resolve this issue as soon as possible as we can not sleep because of continuous harrasments by contractor, and we have lost lot during last 4 months because of contractor. The amount we paid [95% of total project cost, plus 100% of all extrax mentioned in 6 and 8 above] is Not matching to the amount of work done by contractor [hardly 55% of the work is finished.]What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

**A: time to hire a home inspector and a construction litigation attorney.

[dc_soni]

Home Guru,
Thanks for prompt response, but I do not understand why we need to hire home inspector, I am just curious.

Thanks
-Dhaval

[HomeGuru]

Originally Posted by dc_soni

Home Guru,
Thanks for prompt response, but I do not understand why we need to hire home inspector, I am just curious.

Thanks
-Dhaval

**A: you research and tell me why. You could also hire an architect or engineer instead.

[Zigner]

You need to have a PROFESSIONAL opinion of what has been done to the house.
I would suggest you actually consult with the attorney first and get direction from him/her.

[dc_soni]

Thanks again..

My main worries are, I am not able to figure what should be my next steps. So I filed complaint against contractor to government agency and BBB. Now should I wait for some more days before I approach attorney or should I start contacting attorney now or should I wait for some more times. Attorney would be my last choice.

Again thanks for sharing your knowledge and thoughts.

-Dhaval

[HomeGuru]

Originally Posted by dc_soni

Thanks again..

My main worries are, I am not able to figure what should be my next steps. So I filed complaint against contractor to government agency and BBB. Now should I wait for some more days before I approach attorney or should I start contacting attorney now or should I wait for some more times. Attorney would be my last choice.

Again thanks for sharing your knowledge and thoughts.

-Dhaval

**A: since the BBB and the government does not represent you, hire the attorney right away.

[dc_soni]

I agreed, when I look for Attorney, should I look my search to attorney who has specialization in resolving contractor specific disputes, any idea on type/kind of attorney I should hire?

[HomeGuru]

Originally Posted by dc_soni

I agreed, when I look for Attorney, should I look my search to attorney who has specialization in resolving contractor specific disputes, any idea on type/kind of attorney I should hire?

**A: yes that's the type. Construction attorney.

[jhlwstdnt]

If the contractor has general liability insurance, send a letter to the insurance company. You should have received a certificate naming you additionally insured.

I have some questions, did your architect/engineer have to re-design the drawings as the GC requested? If so, what kind of changes were they?

If the house is in the framing stage, call the engineer of record and ask him to perform a framing inspection for you in conjunction with that performed by the city. Make sure the EOR checks that the construction conforms with the drawings.