Consumer Law, Warranties Roofer spent our money, job not completed

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LittleRN

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We have a contract with a roofing company for a metal roof. Agreement was for $10,000 up front, $3500 when job was halfway done, and remaining $3500 when job was complete. We paid the $10,000 and the first $3500 payment. The roofer then asked for an additional $1500 to buy materials even though job was nowhere near complete. So, we have paid $15,000 already. Now the roofer says he has spent the money and can not buy the metal to complete the roof. It has been two months since the roof was started and still there is no metal up, just the underlay. He now asked that we buy the metal ourselves and he will put it up. What can we do? This is Florida and hurricane season and we need a roof on our house. He says he spent the money we gave him because of his wife's medical bills and can't afford the material now. Isn't that illegal? What can we do? HELP!
 
How much will the remaining materials cost? If it's $1500 or so, maybe you and he can agree that you will purchase the remaining materials and he will install them at no charge to you. You wind up getting your roof for the agreed-upon price.

Alternatively, you sue him. There is a good chance you will win. I suspect you will have difficulty collecting on your judgment.
 
Legally, he is obliged to complete the contract for the agreed-on price. If he is not agreeable to completing the job for the $2000 still owing, he is in breach of contract. He might already be in breach of contract by not using the money supplied to buy the materials. So you sue him. You've paid all but $2000 on your end, but the cost to complete is still in the area of $4000 plus labour. Hopefully, in your jurisdiction, whatever that amounts to fits into small claims court.
 
I see a potential problem here, in addition to dee_dub's excellent take as always. You made a very bad deal - you paid well over 50% down and then before you had much of any milestone, you paid another 30% or so, leaving only around 18% left for the builder to have incentive to finish and be paid on the job. That's not good. Now here's another problem. He's spent all the money - all the money you'll be paying here on in will go toward materials and NOT to paying him a dime. Thus, in his mind, working for you means he won't be earning anything going forward. This means you might need to do something soon to ensure he's on the job.

If it were me, I'd send a certified letter stating that he breached the contract but you are giving him a chance to complete the work and minimize damages. I would also add that, by doing so, it is in no way waiving any of my rights. In the event he does not do the work, you will need to hire another contractor since the hurricane season is upcoming and the work MUST get done in a timely fashion. If he doesn't do the work in a professional manner and reimburse you for $X by Y date, then you will need to take further action immediately, including discussion this matter with licensing boards, etc. and suing him for all amounts you will have to pay another contractor. Make sure that he must be on the job immediately and that the work is done to your satisfaction. This could exceed small claims court if you need to hire someone else to finish his lousy work - if he shows up at all.

I think you see where I'm going with this. Without the proper incentive, I'm not sure you'll get satisfaction. I hope this works out for you and settling the matter is usually best (and here he should have no notions of thinking he'll be able to do another paying job and put you on the back burner.)
 
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