Parents Being Screwed by Contractor, What Are Their Options

[fstep2]

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

My question involves a consumer law issue in the State of: NJ

So my parents just bought a new house, hired a contractor to renovate, got a contract worked out with the guy. At this point he basically forced them into paying all the contract stipulates they owe for completion of the work, but there's still at least 20-25% of the work left to do and he's asking for more money and refusing to do any more work. He's not giving any real reason why he's asking for more and dodging all contract questions, just says stuff like "I have to pay my employees, I need money or they won't show up". This is becoming a weekly thing now and at this rate they will be forced to pay more than they have.

What are their options at this point? Hiring someone to replace him at this point would cost a lot as well, because he basically left every part of the house 20% undone, which makes it a really odd job to complete.

Can we use the fact that we know he uses illegal laborers, works without permits, very likely cheats on taxes, etc against him or does that fall into extortion?

 

[FlyingRon]

What they should not do is pay him any more money than what the contract calls for. Fronting the money for materials and paychecks is something that he's supposed to deal with (and why he gets typically a 10% fee or more). They should list precisely the remaining unfinished work under the contract and indicate they will pay promptly when that is completed. I'd be very careful to get lien releases as well.

They should have not even allowed work to begin without construction permits in place. He has obviously taken advantage of your parents, but there are illegal things they obviously acquiesced to which in the long term will be to their detriment.

How much is the total amount in contest (and how much do you estimate it would take to finish the job)?

The New Jersey depart of Consumer Affairs has info on how you might proceed including their alternative dispute program (mediation).
http://www.njconsumeraffairs.gov

You also need to stop making groundless and malicious comments (your statements about his taxes and extortion). Those can get you sued (and he would prevail).

 

[fstep2]

I know what they should not have done, but it's too late for that.

The contract was for $58,000. I would estimate $15-20,000 for someone else to finish the work, but in the mean time the house is unlivable, which is obviously a huge expense for them.

They did list all the stuff that remains and the contractor is aware of it, he just keeps repeating I have no money to pay my people, I need $x and he won't come until he gets money each time now he just stopped showing up.



The stuff I mentioned in terms of working with no permits, illegal laborers, and tax evasion is just stuff I happen to know he's doing wrong. My question in that regard was whether or not I can approach him on behalf of my parents and basically say if he doesn't honor the contract xyz is going to happen. I have the resources/friends to take care of this, but I don't want to cross the line between asking him to honor a contract and blackmail or whatnot.

 

[TheGeekess]

I know what they should not have done, but it's too late for that.

The contract was for $58,000. I would estimate $15-20,000 for someone else to finish the work, but in the mean time the house is unlivable, which is obviously a huge expense for them.

They did list all the stuff that remains and the contractor is aware of it, he just keeps repeating I have no money to pay my people, I need $x and he won't come until he gets money each time now he just stopped showing up.



The stuff I mentioned in terms of working with no permits, illegal laborers, and tax evasion is just stuff I happen to know he's doing wrong. My question in that regard was whether or not I can approach him on behalf of my parents and basically say if he doesn't honor the contract xyz is going to happen. I have the resources/friends to take care of this, but I don't want to cross the line between asking him to honor a contract and blackmail or whatnot.

The time to 'do something about that' was before the job started or as soon as the behavior became known, but you obviously didn't have a problem with his business practices.

 

[FlyingRon]

The stuff I mentioned in terms of working with no permits, illegal laborers, and tax evasion is just stuff I happen to know he's doing wrong. My question in that regard was whether or not I can approach him on behalf of my parents and basically say if he doesn't honor the contract xyz is going to happen. I have the resources/friends to take care of this, but I don't want to cross the line between asking him to honor a contract and blackmail or whatnot.

You can approach him, but it's likely to not mean anything. To pursue legal action, you would need to be an attorney which you are not. You should contribute your resources to having them obtain one. Either that or have them avail themselves of the state assistance I posted above. Further, your tone indicates that you do not appear to have the subjective detachment that is required and that a lawyer would have.

Despite your weaseling, your statements do appear to be libelous. You've seen his tax returns? You claim extortion though none apparently exists. You need to be careful of your clearing intentionally malicious and recklessly indifferent to veracity statements.

 

[fstep2]

The time to 'do something about that' was before the job started or as soon as the behavior became known, but you obviously didn't have a problem with his business practices.

It's my parents house! They are in their late 60s they didn't know better and I wasn't aware of the situation until 2 weeks ago, i'm trying to fix things for them now.

 

[fstep2]

Despite your weaseling, your statements do appear to be libelous. You've seen his tax returns? You claim extortion though none apparently exists. You need to be careful of your clearing intentionally malicious and recklessly indifferent to veracity statements.

Done my research, the first 2 items i'm 100% sure are accurate, the taxes 70%.

 

[quincy]

Done my research, the first 2 items i'm 100% sure are accurate, the taxes 70%.

fstep2, use the information provided by FlyingRon but this issue with your parents' house, like most of the other issues you have come to the forum over, require the services of an attorney in your area. You can help your parents best by referring them to an attorney and then, perhaps, assisting with the costs involved.

Please do not take lightly the comments made by FlyingRon over your statements. Your comments about the contractor can get you sued for defamation and the suit can be a costly one, even if you eventually are able to defend your comments with proof of their truth, to the satisfaction of the court.