Last 10% of construction project

I hear your pain. Too often than not, people don’t name the contractor in these forums for fear of retribution. Let’s face it, a large percentage of NYC construction is done by fly-by-nights…even the big projects. NYC by far has to be one of the worst places to find reputable tradespeople. I’ve done work in South NJ/Philly as well as Mass. and the work ethic is night and day. Let them walk off the job- and get a good lawyer to go after them. The law really does have to change where the contractor, especially when acting in a borderline fraudulent manner, just closes the LLC and hides behind a bankruptcy. I wish you the best of luck in resolving the matter.

nycengineer

in Construction 11 years and 10 months ago

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angelat | 12 years ago

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We are at the last 10% of our contract for a very stressful renovation. We have been mostly unhappy with their work throughout the process and midway through made them fire the subcontractor they hired. We believe we had the basis to fire them but were afraid of the delays it would cause getting a new contractor. We have paid all of our bills on time and even went out of our way on one occasion to get them a bank check so they could make payroll. Then they had the nerve to say if we had not done that they would not have showed up the following Monday. At the beginning of the job they projected it would take 5 months. We are at our year anniversary and they have not been here for over a month because allegedly they were waiting to get all the materials to finish the job. They still need to complete a significant amount of work (back deck and stairs) and they hit us with another invoice. If we are at the remaining 10% do we have to pay anymore until they are done? We are aware that these are some bad guys but we just want the job done and since we have to do a C of O we can’t just fire them and be done with it because it would cost us more to complete the work than what we owe them at this point. They refuse to come back on the job until they receive a check. Do we have any recourse?

jcarch | 12 years ago

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I’m sorry you’ve had such a difficult go of it. Typically, the last 10% of the job is not paid to the contractor until everything is 100% done. But what does your contract with them say? If a different payment schedule is spelled out in that document, then that’s what is in effect. Even if your agreement does not call for 10% retainage, I’d sit down with them and calmly lay out the situation – that you need them to finish the work before making a final payment. If they won’t do that, then back out the cost of the remaining work from the balance due to them, part ways from them, and find another contractor to finish up. Good Luck. jcarch ———————— James Cleary Architecture brownstoner.staging.wpengine.com/jamescleary

ventilated | 12 years ago

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“They refuse to come back on the job until they receive a check.” Do you have this in writing? Do you have their previous caveat in writing (“Then they had the nerve to say if we had not done that they would not have showed up the following Monday”)? I’m not a lawyer, but this sounds like extortion to me. If this was a contractor I was dealing with, I’d be sure to get their threats in writing, and then I’d enter a complaint with the Better Business Bureau, as well as head straight down to the Brooklyn DA’s office.

curated | 12 years ago

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Your payment schedule should clearly spell out what is owed and at what points during the project. http://brownstoner.staging.wpengine.com/curated

NeoGrec | 12 years ago

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A lot of GCs run out of steam at the end of a big project. Maybe they are losing money because of the longer timeline and want out. I know it’s completely unprofessional but I’ve seen it happen so many times. I agree you should try to arrive at a solution but be prepared to let them walk away. At least it appears you haven’t paid more than they’ve delivered. This must seem like a grim possibility but the end of the job involves small but fiddly detail work and you don’t want them to screw that up. Don’t let the C of O issue intimidate you.

Rick | 12 years ago

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Sad but true. I see this all the time. Contractors run out of steam at the end and are looking for the next large job. A large part of my work is finishing up that 10%, like a pigeon picking up crumbs : ) You can see examples of my work at RickLaddBrooklyn.com

dorkofwindsor | 12 years ago

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this is a tough situation and here is why – – basically they’re either raising the price on you, which i suppose “is what it is” (timeline, low profit job, maybe they are emotionally drained with you, maybe they’re just scumbags etc etc). or they’re just taking the last 10% without intending to finish the job. This is rather common, and sadly some consider it part of the business. so as soon as you pay them then what? trust people you know who are “bad guys” or write that “you better finish or else”? they can show up or not at their leisure (or not at all, which happens more than you think). if you for some reason decide to have them finish, i’d amend the contract and spell out in writing how the job will be finished, and how much bonus beyond the “original final 10%” you are paying them now (extra x% incentive?) to actually finish. If you’re not intending on a bonus incentive to actually finish, i would absolutely not use this contractor for the remainder (who essentially does not want to finish as-is). Chances are too great that they will do a little work and stop showing up and not complete the job. I don’t know the reasons why the project is far beyond, but i am sure they are blaming you for firing the sub. if you don’t decide to use them (and i would not, since chances of them extorting you up for even more money on top of whatever you negotiate is quite high in my opinion) Sorry for your predicament, best wishes.

intanatile | 11 years and 11 months ago

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Hi, I`m contacting you on behalf of your ad. Please let me know if your still looking for help with your flooring work. References available upon request. Licensed and insured. Please contact me if interested. Best prices around. Joey 917-470-8587 INTANATILE—INSTAGRAM

agdipierro

in Construction 11 years and 10 months ago

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A 10% retainage shall be included in all construction contracts.