L
lizo417
Guest
> > I recently constructed a custom home using a contractor under a cost plus 15% construction contract. The home was completed in February and we began occupancy at that time. Mortgage financing was closed 3/22/00, without lien other than the mortgage corp.
During the construction the septic system (low pressure dosing)was designed by
a local engineer. The local health inspector later recommended using a evaporative system. With my approval the evaporative
system was designed and installed by a sub-contractor of the contractors
choosing.
The county health inspector, at a point prior to completion, inspected and certified the system. The system was completed September 1999. The contractor made a construction finance draw on 9/14/99 in the amount of $5175.00 for full payment of septic installation. This amount included the contractors 15% profit, per contract.
Since occuping the residence the septic has leaked effluant sewage in streams from the sides of the leach fields. After complaints of the leaking effluant made to the contractor, the septic sub contractor attempted repair. On 3/30/00 the sub trenched along one side of the leach field filling the trench with rock and covering with dirt (large french drain). This did not resolve the problem. Further compalints prompted the contractor to have more dirt delivered to the site. On 4/19/00 two of the contractor partners came to the site and using one of the partners personnal tractors, spread the dirt around the leach field. I assisted the movement of the dirt with my own tractor.
On 4/23/00 I was billed by the contractor for all dirt and rock used in both repair
attempts, as well as labor/equipment provided by the contractor on 4/19/00, plus
15% of the total for the contractors profit. The billing notice indicated that that teh sub did not charge for his labor and equipment usage on 3/30/00.
Neither contractor nor the sub had any discussion with me regarding their plans
for repair, materials, or equipment. I made no specific request for materials
or equipment after closing on the mortgage loan. My only communication with
eh contractor was to inform them of the defect in the septic system.
QUESTION: Is contractor within their right to demand reimbursment of their expenses for the repair, under these circumstances? Is the contractor entitled to a 15% profit for repair attempts? Was my financial obligation to the contractor for construction under the contracts terms, fulfilled at the time of closing and release of lein? Should I expect repairs to the septic and any other future construction issues to be covered under the warranty clause of the construction contract?
During the construction the septic system (low pressure dosing)was designed by
a local engineer. The local health inspector later recommended using a evaporative system. With my approval the evaporative
system was designed and installed by a sub-contractor of the contractors
choosing.
The county health inspector, at a point prior to completion, inspected and certified the system. The system was completed September 1999. The contractor made a construction finance draw on 9/14/99 in the amount of $5175.00 for full payment of septic installation. This amount included the contractors 15% profit, per contract.
Since occuping the residence the septic has leaked effluant sewage in streams from the sides of the leach fields. After complaints of the leaking effluant made to the contractor, the septic sub contractor attempted repair. On 3/30/00 the sub trenched along one side of the leach field filling the trench with rock and covering with dirt (large french drain). This did not resolve the problem. Further compalints prompted the contractor to have more dirt delivered to the site. On 4/19/00 two of the contractor partners came to the site and using one of the partners personnal tractors, spread the dirt around the leach field. I assisted the movement of the dirt with my own tractor.
On 4/23/00 I was billed by the contractor for all dirt and rock used in both repair
attempts, as well as labor/equipment provided by the contractor on 4/19/00, plus
15% of the total for the contractors profit. The billing notice indicated that that teh sub did not charge for his labor and equipment usage on 3/30/00.
Neither contractor nor the sub had any discussion with me regarding their plans
for repair, materials, or equipment. I made no specific request for materials
or equipment after closing on the mortgage loan. My only communication with
eh contractor was to inform them of the defect in the septic system.
QUESTION: Is contractor within their right to demand reimbursment of their expenses for the repair, under these circumstances? Is the contractor entitled to a 15% profit for repair attempts? Was my financial obligation to the contractor for construction under the contracts terms, fulfilled at the time of closing and release of lein? Should I expect repairs to the septic and any other future construction issues to be covered under the warranty clause of the construction contract?