Custom home builder change without permission, chance of winning the litigation?

[aircw2005]

Hello friends in the forum:

We are in the process of building a custom home with a builder. Here are our situations:

1. We are in a dispute with the builder regarding the quality of the foundation. We have hired 3rd party engineer to evaluate the quality.
2. During the dispute process, we found that the builder change the dimension of the foundation walls, without our permission. He admits that and we note it in email with him.
3. As a consequence, this change will lead to changes in framing plan, which we don't accept.

Our proposal is to demolish the foundation with quality issue and wrong dimension, which costs $16K in demolition and $35K in building. The builder does not accept and insist the foundation as it is. We plan to go to mitigation service with the builder. If it does not work out, we would have to take legal actions, in our case, what's the chance of winning the litigation?

 

[LdiJ]

Hello friends in the forum:

We are in the process of building a custom home with a builder. Here are our situations:

1. We are in a dispute with the builder regarding the quality of the foundation. We have hired 3rd party engineer to evaluate the quality.
2. During the dispute process, we found that the builder change the dimension of the foundation walls, without our permission. He admits that and we note it in email with him.
3. As a consequence, this change will lead to changes in framing plan, which we don't accept.

Our proposal is to demolish the foundation with quality issue and wrong dimension, which costs $16K in demolition and $35K in building. The builder does not accept and insist the foundation as it is. We plan to go to mitigation service with the builder. If it does not work out, we would have to take legal actions, in our case, what's the chance of winning the litigation?

Builders are often operating on a shoestring...where cash flow is a major issue. If the builder already cut corners on the foundation that tends to indicate cash flow issues. Were you to win in litigation the builder might just file bankruptcy.

 

[aircw2005]

The builder has been in business for a long time, and his business seems pretty stable to me. But he is known for controlling budget on his side, the reason for his change is that he wanted to avoid some costs in backyard excavation.

 

[LdiJ]

The builder has been in business for a long time, and his business seems pretty stable to me. But he is known for controlling budget on his side, the reason for his change is that he wanted to avoid some costs in backyard excavation.

The builder has been in business for a long time, and his business seems pretty stable to me. But he is known for controlling budget on his side, the reason for his change is that he wanted to avoid some costs in backyard excavation.

You are still asking him to eat 51k and that is an amount that few builders could eat unless insurance would cover it. He might prefer to buy you out of the house and finish it as a spec house.

 

[aircw2005]

Got it, he seems have some insurance. But to get that from his insurance, we will need to go to ligation process? If we negotiate a deal in mediation service, can that be paid from his insurance?

 

[Zigner]

Got it, he seems have some insurance. But to get that from his insurance, we will need to go to ligation process? If we negotiate a deal in mediation service, can that be paid from his insurance?

If you negotiate in mediation and are given an award, it's really not your concern where the money comes from, just so long as you get it.

 

[LdiJ]

Got it, he seems have some insurance. But to get that from his insurance, we will need to go to ligation process? If we negotiate a deal in mediation service, can that be paid from his insurance?

Only if he involves his insurance company in the process AND he has the kind of insurance that would cover errors and omissions.

 

[aircw2005]

Thanks, that's actually a super optimal case to our favor.

Currently the contractor admits the change without consent, but refused the quality issues. He just filed a lien against us for the foundation construction cost ($35K). We are going to have first round of discussion with him tomorrow, we expect it to be a heated one.

 

[Shadowbunny]

What US State is this in?

 

[aircw2005]

We are in Washington state.