Hi,
I live in Virginia. I hired a company to do a 2nd story addition in October of 2006 and paid him 1/4 of the project's cost to start in November of 2006. Due to delays and excuses on his part, it took a complaint to the BBB and threat of arbitration to get him to start. He started the job in October of 2007, but only after I gave him an advance payment of $5000. Work went well for a month 1/2, then stopped. He was supposed to be finished by 1/7/08 but, needless to say, this wasn't the case. The framing was done, but the electrical work was only 1/2 finished, there was no plumbing, and no HVAC work completed. I threatened lawsuits and filed a complaint with the DPOR. Long story short(er)
We renegotiated a deal where I would pay extra for HVAC (I paid the subcontractor directly) and I gave him a new deadline (2/7 for electrical work, HVAC, plumbing, and drywall to be finished.) I gave him an overall completion date of 3/10, with a $100/ day penalty if not completed by that time. I also put in a clause that stated if either of the deadlines expired, I could hire another contractor to finish the job.
Bottom line? I honestly don't think he'll be finished by 2/7. He obviously doesn't have the money to pay his subs. In fact, the framers told me he still owes them $9,000, and I'm sure the electrician is in the same boat (which is why he hasn't finished the work).
I don't know WHAT to do. I talked to an attorney who was no help at all. I had another contractor give me an estimate to finish, and it was over $20,000 more than my original contract, and of course, I can't afford to pay that. I'm also afraid the framer and electrician will place liens against my home.
I guess my question is, "what should I do?" I thought of giving the contractor a "loan" to get the project moving again, but don't know how to work up a contract that is legally binding for a loan. I also thought of waiting until 2/7 and hiring the subcontractors on my own to finish the project, but I don't want to be taken by subcontractors, either. It seems the only other alternative would be to wait until 2/7 and hire another contractor and pay the extra $20,000+.
If I pay another contractor to complete the job, will I be able to sue the original contractor for breach of contract (and hence, the $20,000+ difference in cost between the original contract and the new one?) What happens to any suit I file and damages I'm awarded if this person files for bankruptcy?
Thanks for any advice. I'm a total wreck over this, not to mention the fact that I've had to move in with my parents again and have a 1 1/2 hour commute to work...
I live in Virginia. I hired a company to do a 2nd story addition in October of 2006 and paid him 1/4 of the project's cost to start in November of 2006. Due to delays and excuses on his part, it took a complaint to the BBB and threat of arbitration to get him to start. He started the job in October of 2007, but only after I gave him an advance payment of $5000. Work went well for a month 1/2, then stopped. He was supposed to be finished by 1/7/08 but, needless to say, this wasn't the case. The framing was done, but the electrical work was only 1/2 finished, there was no plumbing, and no HVAC work completed. I threatened lawsuits and filed a complaint with the DPOR. Long story short(er)
We renegotiated a deal where I would pay extra for HVAC (I paid the subcontractor directly) and I gave him a new deadline (2/7 for electrical work, HVAC, plumbing, and drywall to be finished.) I gave him an overall completion date of 3/10, with a $100/ day penalty if not completed by that time. I also put in a clause that stated if either of the deadlines expired, I could hire another contractor to finish the job.
Bottom line? I honestly don't think he'll be finished by 2/7. He obviously doesn't have the money to pay his subs. In fact, the framers told me he still owes them $9,000, and I'm sure the electrician is in the same boat (which is why he hasn't finished the work).
I don't know WHAT to do. I talked to an attorney who was no help at all. I had another contractor give me an estimate to finish, and it was over $20,000 more than my original contract, and of course, I can't afford to pay that. I'm also afraid the framer and electrician will place liens against my home.
I guess my question is, "what should I do?" I thought of giving the contractor a "loan" to get the project moving again, but don't know how to work up a contract that is legally binding for a loan. I also thought of waiting until 2/7 and hiring the subcontractors on my own to finish the project, but I don't want to be taken by subcontractors, either. It seems the only other alternative would be to wait until 2/7 and hire another contractor and pay the extra $20,000+.
If I pay another contractor to complete the job, will I be able to sue the original contractor for breach of contract (and hence, the $20,000+ difference in cost between the original contract and the new one?) What happens to any suit I file and damages I'm awarded if this person files for bankruptcy?
Thanks for any advice. I'm a total wreck over this, not to mention the fact that I've had to move in with my parents again and have a 1 1/2 hour commute to work...
