Opinions wanted: When to fire a GC, and what fallout to expect.

One last note…. you cannot get signoffs without an active permit

eman134

in About Brooklyn 9 years and 11 months ago

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Lurker | 9 years and 11 months ago

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We embarked on a big reno so long ago I can’t even remember. We are 2/3rds done, meaning the basement rental, which requires filing of an alt 1 which hasn’t been done yet (we have alt 2), is only half done. Our GC has bled us dry, shows up once a month for a couple days then disappears, our permit expired months ago and I’m trying to figure out if cutting losses is even an option. I don’t think I have the cash to finish the job with someone else. I need this GC to renew permit so that final inspection can happen?I assume another GC would balk at covering his work. I wonder about reducing the scope and then getting what’s been done inspected and closed out, leaving the rest for a rainy day in the future. But the remaining work is a rental unit that would require Alt 1, which hasn’t yet been filed. So, what happens there–does DOE require us to remove the work done in the basement? Is there another option I’m not thinking of? And is there an option for crushing the GC in court? Between lost income for rent for over a year, losses due to his subs disappearing with my cash, 6 months extra rent at another apartment waiting for him to finish. It’s a few 10s of thousands of bucks lost on this guy. I assume he’s an LLC and he’d just go bankrupt or bellyup before I collect a dime. Or he’d murder me in my sleep. Anyone have experience here? We thought we did all the homework, but find even with contracts there really seems to be no formal process for rooting these guys out or making them accountable.

mozeeatupu | 9 years and 11 months ago

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If you have a contract, paid checks, etc talk to the DCA, Dept of Consumer Affairs.

bedstuyreno | 9 years and 11 months ago

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Sounds like you paid for work that wasn’t completed. A rule of thumb is to always hold back payment until the job is completed. I don’t work with contractors who don’t accept this way of working. I think you have to bid out the work again- including filing for new or renewing the expired permits.

snowman2 | 9 years and 11 months ago

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The DCA is a long term move. They need something now. You are right that another GC is not going to take over and get permits/approvals for work already done so you need to do something to work with the guy you have but get approvals and close out what you can with him. I would talk to a good construction attorney (I know, more money that you don’t have). If you’re lucky, just a letter from an attorney might inspire him to be cooperative in closing out the contract in a reasonable way. The attorney should advise you on how to come up with a resolution. It’s a messy business. Although you might not want to spend money on an attorney, it might save you a lot of wheel-spinning and be the cheaper solution. I am not an attorney. As a homeowner I have done more construction projects than I can remember over the past 35 years and once really needed to resort to an attorney to get rid of a non-performing GC. It was worth the money. I used the same attorney a second time to formally terminate a contract with GC who walked off the job and wasn’t coming back. The second time probably was not necessary but it gave me peace of mind. Good Luck.

greenmountain | 9 years and 11 months ago

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“We thought we did all the homework…” but, “I assume he?s an LLC…” If your homework included checking his DCA license, than why don’t you know his legal business name? If he pulls permits, than he has a workers’ comp policy and is registered with the DOB, but Licensed Home Improvement Contractors (like me) pay in to a fund to prosecute other contractors. It is really hard to compete as a (more expensive) licensed contractor, when a client’s homework does not include “Instant License Check.” Was the purpose of your homework to find cheaper contractors? Or were you unable to find an available and qualified licensed contractor because we can’t compete? For instance I specialized as a bathroom and tile contractor, years ago, when I realized competing against cheaper unlicensed contractors was not worth the trouble.

Arkady | 9 years and 11 months ago

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What about filing a mechanic’s lien?

slopefarm | 9 years and 11 months ago

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Arkady, I don’t think the owner can file a mechanic’s lien on the mechanic. The lien is the mechanic’s — or contractor’s — remedy against not getting paid. They put a lien on the house to be cleared when payment is made. Not the other way around. A lawyer’s letter may be the sensible next step, but don’t count on it working. You may have to follow through on whatever threat you make in the letter. Worth consulting with attorney for whom this is a specialty, so you are not stuck with someone who has to bill for drafting papers from scratch. Green Mountain — yes, use licensed contractors, don’t get ahead in payments etc. But talk about kicking someone when they are down.

tressilliana | 9 years and 11 months ago

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Out of interest, how involved was an architect in this renovation? I’m assuming if you filed with the DoB then you relied on an architect and their expediter? If your architect has been involved in the construction side of things (some are, some aren’t) then you should also be looking at the role they played in contributing to the situation. For example, an architect should have been receiving payment applications (form A1A document G702) from the contractor and reviewing the quoted ‘progress’ against actual before approving any payments. That way the contractor couldn’t be paid for work not undertaken. If they failed to do this then you should look into their contract too.

Lurker | 9 years and 11 months ago

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Greenmountain, Your customary seething anger and tirade is unwarranted in this case. He is a licensed GC, has workmen’s comp (or did and it lapsed during the year-plus of construction) and he pulled permits for everything –this was a filed job. He has a name of his business and when I checked at contract signing I didnt’ confirm whether it was an LLC or not. It occurred to me as I wrote this post last night that it might make the difference.

tressilliana | 9 years and 11 months ago

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Also, would agree with the above comments re another GC not wanting to take over another GC’s failed job. Or rather they might – for a hefty premium to cover the associated risk.

Lurker | 9 years and 11 months ago

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Thanks slopefarm and tressilliana. I guess I won’t air all the dirty laundry here but what started as a tight process quickly became casual, and the arch has done thorough inspections but hasn’t been the construction manager on the job out of budget necessity. Payments weren’t structured which has been a problem. I still have held back 10% of the total, which is pretty close to what it should cost to get finished, maybe 15%, but he isn’t motivated enough to get back here for that, which is what’s surprising.

tressilliana | 9 years and 11 months ago

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It happens – things start well and often unravel. I only mentioned the architect as was hoping there might be another avenue for you to consider. In truth I think previous suggestions to get a lawyer to draft a nasty letter, as a way to kick them in the butt, might be the best option. Even if you aren’t sure if you will pursue the legal avenue in full you might be lucky enough to bluff the GC into thinking you are. Best of luck – it sounds like you’ve come a long way and just need to get over the line.

eman134 | 9 years and 11 months ago

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If you do not have the signoffs on the job ( plumbing, electrical) do not even consider giving him the boot…it will cost you wellover 30 percent to get those jobs subsumed and signed off

slopefarm | 9 years and 11 months ago

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Lurker, one other thought. If you are really 15% away from done, maybe there is a practical compromise, if you can actually communicate with the GC. A lot of the detailed finish work can be done after the job is closed with DOB. Maybe work something out with GC where you will pay him enough for him to be willing to do just enough to get you through closing the job with DOB. Once the job is closed, you can far more easily hire someone to do all the finish work that remains. You will end up paying more than you planned, but this would be a faster and less costly path than litigation. This is pretty much what we ended up doing.

Lurker | 9 years and 11 months ago

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Thanks all for the input, from the top down! Eman that was my thinking. We got a gas line (well, self-cert as DOB didn’t show) and plumbing rough passed and electric happens at the end (unless I’ve been lied to and then who know what will happen). Boiler is also done and signed off. Slopefarm that’s an interesting option but I don’t know what DOB will require to be considered inspectable–can I leave bare concrete floors and mud and tape and trim molding/casings? I don’t know what is considered done enough for inspection. My worry about going to a lawyer is making enemies with GC. In my opinion this GC doesn’t respond to threats and to the contrary it would burn the bridge completely, forcing me to start over. But I understand that may be the last resort.