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Guest
What is the name of your state?I am in North Carolina.
Six months ago, we hired a contractor to finish our bonus room, approximately 380 square feet. The contract says the work is to be completed "as expeditiously as possible" absent such conditions as strikes, war, or shortages of materials or labor. The job is still not done, and at the current rate of progress, it would be about 2 more months until it is finished.
On Friday, we received a letter from the plumber, who completed his work in July, saying that he had not been paid, and we needed to pay him, or he might file a lien against our property. But this did offer some insight into why the job is progressing so slowly--the contractor is not paying his subs, so he has trouble getting anyone to work for him.
We checked with the electrician, and he had not been paid either. Other than the HVAC contractor, whom we paid ourselves (per the contract), these are the only subs that did any work on the project before late September. Therefore, the contractor hasn't paid any of the subs since the start of the project six months ago. Also, the contractor didn't get any of the building permits until nearly two months after construction started, when the electrician applied for an electrical permit. This caused the city inspector to come out to our house and demand that the contractor get permits for the rest of the work.
We want to get rid of this contractor. We plan to tell him to return the key to the house and not to come back. We will not pay him the remaining 30% of the agreed-upon price. We think we should be able to hire a handyman to finish up the project for less than the remaining 30% of the contracted price.
(1) Are we on firm legal ground in terminating the contractor for breach of contract?
(2) Do we owe any money to the contractor if we terminate him?
(3) Do we have any obligation to pay the subcontractors who have worked on the project?
Thanks,
Ed
Six months ago, we hired a contractor to finish our bonus room, approximately 380 square feet. The contract says the work is to be completed "as expeditiously as possible" absent such conditions as strikes, war, or shortages of materials or labor. The job is still not done, and at the current rate of progress, it would be about 2 more months until it is finished.
On Friday, we received a letter from the plumber, who completed his work in July, saying that he had not been paid, and we needed to pay him, or he might file a lien against our property. But this did offer some insight into why the job is progressing so slowly--the contractor is not paying his subs, so he has trouble getting anyone to work for him.
We checked with the electrician, and he had not been paid either. Other than the HVAC contractor, whom we paid ourselves (per the contract), these are the only subs that did any work on the project before late September. Therefore, the contractor hasn't paid any of the subs since the start of the project six months ago. Also, the contractor didn't get any of the building permits until nearly two months after construction started, when the electrician applied for an electrical permit. This caused the city inspector to come out to our house and demand that the contractor get permits for the rest of the work.
We want to get rid of this contractor. We plan to tell him to return the key to the house and not to come back. We will not pay him the remaining 30% of the agreed-upon price. We think we should be able to hire a handyman to finish up the project for less than the remaining 30% of the contracted price.
(1) Are we on firm legal ground in terminating the contractor for breach of contract?
(2) Do we owe any money to the contractor if we terminate him?
(3) Do we have any obligation to pay the subcontractors who have worked on the project?
Thanks,
Ed