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Cancel an Addition Contract

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bigmike

Junior Member
What is the name of your state? Ohio

I signed a contract for a 1200 sf addition in Jan 06. The contract is contingent on me obtaining a VA grant. I have received the grant but not actually signed for the money yet.

While waiting for VA approval I signed a contract with the same contractor in May to build a detached garage. The contract states that work will commence in one week (it did) and be completed by 01 July.

It is now Sept and the garage is still at least 2-3 weeks away from completion. The contractor also messed up the garage floor but says he will fix it. I have paid the contractor 75% of the contract price with the final 25% payable at completion.

1. Due to his performance on the garage I want to cancel the contract for the addition. The VA requires a letter from the contractor stating the contract is canceled. What are my options?

2. Is there anything I can do about the garage going over the completion date like maybe keeping some of the money that is left? This is a very small contractor and he is near bankruptcy.

3. Since it took the VA so long to approve the grant the contractor asked me to pay for some things that the contract says he is responsible for. I verbally agreed but is this enforceable upon me?

Thanks, Mike
 


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HappyHusband

Senior Member
bigmike said:
What is the name of your state? Ohio

I signed a contract for a 1200 sf addition in Jan 06. The contract is contingent on me obtaining a VA grant. I have received the grant but not actually signed for the money yet.

While waiting for VA approval I signed a contract with the same contractor in May to build a detached garage. The contract states that work will commence in one week (it did) and be completed by 01 July.

It is now Sept and the garage is still at least 2-3 weeks away from completion. The contractor also messed up the garage floor but says he will fix it. I have paid the contractor 75% of the contract price with the final 25% payable at completion.

1. Due to his performance on the garage I want to cancel the contract for the addition. The VA requires a letter from the contractor stating the contract is canceled. What are my options?

2. Is there anything I can do about the garage going over the completion date like maybe keeping some of the money that is left? This is a very small contractor and he is near bankruptcy.

3. Since it took the VA so long to approve the grant the contractor asked me to pay for some things that the contract says he is responsible for. I verbally agreed but is this enforceable upon me?

Thanks, Mike
Click to expand...
1. Due to his performance on the garage I want to cancel the contract for the addition. The VA requires a letter from the contractor stating the contract is canceled. What are my options?

If that's what the VA requires, that is your option.



2. Is there anything I can do about the garage going over the completion date like maybe keeping some of the money that is left? This is a very small contractor and he is near bankruptcy.

What does your contract say about damages for late completion?
You can't just decide that you want to keep some of the money just because you want to punish the contractor for finishing late.



3. Since it took the VA so long to approve the grant the contractor asked me to pay for some things that the contract says he is responsible for. I verbally agreed but is this enforceable upon me?

The written contract will probably override any verbal "agreement", and the court would decide if it would be enforceable.
But if the contract is contingent on you obtaining the VA grant, and you don't have it yet...is that contract enforceable yet?
 
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bigmike

Junior Member
"If that's what the VA requires, that is your option."

I didn't really mean with the VA I meant with the contractor.

"What does your contract say about damages for late completion?
You can't just decide that you want to keep some of the money just because you want to punish the contractor for finishing late."

There is no damage clause.

"But if the contract is contingent on you obtaining the VA grant, and you don't have it yet...is that contract enforceable yet?"

No, I don't think it is. I want to use this because maybe the contractor will be more acceptable to cancelling when he finds out I will not pay more than the original contract price.
 
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HappyHusband

Senior Member
bigmike said:
"If that's what the VA requires, that is your option."

I didn't really mean with the VA I meant with the contractor.

"What does your contract say about damages for late completion?
You can't just decide that you want to keep some of the money just because you want to punish the contractor for finishing late."

There is no damage clause.

"But if the contract is contingent on you obtaining the VA grant, and you don't have it yet...is that contract enforceable yet?"

No, I don't think it is. I want to use this because maybe the contractor will be more acceptable to cancelling when he finds out I will not pay more than the original contract price.
Click to expand...
I didn't really mean with the VA I meant with the contractor.
If the VA requires a letter from the contractor stating that the contract is cancelled, that's what you'll have to get, unless the VA will accept something else. Maybe if you send the VA a letter telling them you don't want to use this contractor anymore? I don't know.

There is no damage clause.
Then you can't arbitrarily penalize him for finishing late.


No, I don't think it is. I want to use this because maybe the contractor will be more acceptable to cancelling when he finds out I will not pay more than the original contract price.
That may work. I'm not sure how you can get out of the contract.
Or you could just tell him that you aren't satisfied with his performance on the garage and you don't want him to do the work on the addition. He may agree to cancel the contract.
 
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