Building Contract Breach

[6050200]

I entered into a contract with a builder to add on to my home. This builder was supposedly a friend with whom I have done business with in the past. Towards the end of the project I paid him $5,000 to cover some work that had already been completed and to give an advance on some work still remaining. The subcontractor (a third party)who had completed his job was waiting for his payment which should have come from the $5,000 I paid to the contractor. This third party never received his money in the amount of $3,000 from contractor and I had to pay him out of my own pocket to keep a lien off of my home. The contractor skipped out with out ever coming back or contacting me again. I had an attorney send a demand letter for compensation of the $3,000 and to request that the remainder of the work be finished according to the contract. This letter was filed through the courts and the sheriff's office served the papers to the named individual. We received a return letter stating that the builder's business was no in existance and had declaired bankruptcy, but he did state in writing that he did owe us some of the money and would make payments when he could. That's all we have heard in the last 4 months. I seriously doubt that this person will ever send any money as he really doesn't have very much. I don't really want to incur anymore attorney fees since I doubt that I'll see any of my $5,000. Is there anything that I can do legally myself by filing any documents or placing a lien on his property until we reach some settlement? Thanks in advance for any advice you may have. It may be important for you to know that I live in Texas.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by 6050200:
I entered into a contract with a builder to add on to my home. This builder was supposedly a friend with whom I have done business with in the past. Towards the end of the project I paid him $5,000 to cover some work that had already been completed and to give an advance on some work still remaining. The subcontractor (a third party)who had completed his job was waiting for his payment which should have come from the $5,000 I paid to the contractor. This third party never received his money in the amount of $3,000 from contractor and I had to pay him out of my own pocket to keep a lien off of my home. The contractor skipped out with out ever coming back or contacting me again. I had an attorney send a demand letter for compensation of the $3,000 and to request that the remainder of the work be finished according to the contract. This letter was filed through the courts and the sheriff's office served the papers to the named individual. We received a return letter stating that the builder's business was no in existance and had declaired bankruptcy, but he did state in writing that he did owe us some of the money and would make payments when he could. That's all we have heard in the last 4 months. I seriously doubt that this person will ever send any money as he really doesn't have very much. I don't really want to incur anymore attorney fees since I doubt that I'll see any of my $5,000. Is there anything that I can do legally myself by filing any documents or placing a lien on his property until we reach some settlement? Thanks in advance for any advice you may have. It may be important for you to know that I live in Texas. <HR></BLOCKQUOTE>

You can find out the number of the BK and file a claim in BK Court. You can also file a complaint with the Contractors Licensing Bureau as there may be a State recovery fund to help consumers. The builder may have also posted a bond. The way I see it is that this builder owes you at least $3000 plus whatever the cost is to complete the construction. So far your attorney has only spent a couple of hours doing work for you. If you really want to resolve the issues correctly, you need legal consultation. At the very least have the attorney advise you on your options.