Can Contractor Pull Permits if we cancel Contract for non-performance

Long story short. Our contractor is a crook. We are 6 months behind. Mostly because they have not properly paid the actual contractor who then quit 6 months in and now they’re not paying the new contractor they hired. They clearly never had enough money for materials. I agreed to pay materials and some towards workers pay directly and they still want money on contract. They lie, etc. Bottom line, it’s be one unworkable. Ive paid them almost all the money on the contract and so much is undone.

We’re almost at the end. Plumbing inspection has already been signed off on. It’s my understanding that all that is left is the electrical inspection and final sign off. If we fire them, can they pull the permits that already exist for the construction?

classc1

in General Discussion 3 years and 11 months ago

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classc1 | 3 years and 11 months ago

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Turns out they had a business under another name more than 10 years ago and closed down for similar issues. Also, they do have a contractor license as in fact they were the ones that pulled the permits on the project.

Lurker | 3 years and 11 months ago

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we were set to have the case referred for a hearing, which is in the OATH court, if our contractor didn’t sign. So that pressure is what tipped him. I presented what our contract was, what payments were made, what work was outstanding, and the costs based on the contract’s line items still outstanding. It was all pretty irrefutable.

hasibur.rahman07 | 3 years and 11 months ago

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Thanks for sharing Lurker. The first part about mediation is what I also heard from the DCA.

Negotiation didn’t work in my case but also I did not push it. It was similar to the Classc, the owners did not want to take responsibility for sub-contractor and they didn’t even seem aware that the sub had done anything wrong. So we would have wasted 3 month negotiating. DCA told me they will not sanction or suspend license till there is proof such as a legal settlement etc

classc1 | 3 years and 11 months ago

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Thank you Lurker for that information.

Lurker | 3 years and 11 months ago

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https://www1.nyc.gov/site/dca/businesses/settle-violations.page

Lurker | 3 years and 11 months ago

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Vard01—it’s as I said. We filed a complaint, DCA reached out to contractor who has something like 30 -90 days to respond, from there they act as mediators and aim to negotiate a settlement between the parties. If that doesn’t work they then can refer the case for trial. They do have subpoena power, they do have the right to pull a contractors license, which prevents them from doing work legally. They can and do sanction contractors so that they are basically on strict probation. Of course there are ways around it, but in our case we got back almost 20% of our construction contract.
Justice is slow, it takes a while, but in our case we filed in Nov and had a settlement by April/may.

classc1 | 3 years and 11 months ago

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I covered myself as much as possible. That’s why I can walk away. Nothing fishy. Just relied upon the recommendation of my architect.

randolph | 3 years and 11 months ago

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something about this whole story if fishy. the op claims to be an attorney but certainly doesn’t write or do his own business like one…..

classc1 | 3 years and 11 months ago

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Thank you. I’m an attorney. I can make a case. These people took the GC during the construction of my home and assigned him to work on their personal flip! We did not know this until recently. Whenever we would go to our house and there were minimal workers, there was always an excuse or they would not address it. If we had a walk through, they put on a major show and had multiple workers. Major work did not get done ever or if it did, it was untimely despite us having paid our contract in full and up to date.

Then they stopped paying the GC and of course work slowed down and he quit 6 months in. Now they got a new contractor that’s excellent and fast and they are not paying them! Found out they were not paying the workers on three different jobs. They’ve asked for partial payments I’m not required to give and I’ve done so in the past as I knew they had already spent my money and nothing would get done. They tell the workers to lie to us about why they’re not working…they haven’t paid them. Lie every week about where materials are.

Now, we’re like we need to mov e in Christmas and have requested a new projected date of completion. They have refused to give us one.

They’ve tried to rush and do inferior work to get the last bit on the contract while thousands of dollars worth of work I’ve paid for is not done.

They don’t care because there’s no more money left in it for them. Anything I owe will go to the workers and materials. They are criminals.

hasibur.rahman07 | 3 years and 11 months ago

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@ Lurker DCA told me they have the power to sanction and remove the license. However they only do that if you have a legal judgment. Some contractors are scared when the DCA gets involved and will negotiate but others will not. Been through this twice with the once with a GC and once with another business.

If you had a different experience, please share more. Thank you.

andriywww1990 | 3 years and 11 months ago

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i think vard is correct, the dca seems to not have any “teeth” and they are kind of all over the place in their focus and do not seem to be concerned with protecting the consumer. i have never been called before the dca so i am not sure how threatening they can be, but i am not even sure they can bring criminal charges.

in so far as to what happen to the OP. this can happen a couple of ways sort of like this:

a contractor takes a deposit with all good intentions. wants to do the job. but something goes wrong. they missed something during the estimating process and materials and labor cost more than they anticipated or perhaps something goes wrong in their life. they blow the engine on a vehicle or their tools get stolen or…… keep in mind, contingencies (second vehicles, theft insurance) cost money and contractors do not always consider these things the way they should. when this happens, they do what they have to do to keep the job going and that may mean a new vehicle and if they cannot get credit it may be cash and guess whose cash they are using. If they are the sole income earner in their house and they are paying the rent or mortgage, this can go very bad, very fast. if they have a working spouse, there is some cushion. if this happens, you are at the mercy of that person to manage the financial affairs in a way that perhaps it would take a Harvard MBA and even many of those people find themselves in trouble (we read about it in the papers all the time).

another scenario. I have had customers throw contractors off jobs and tell me “everytime i give him a progress payment he goes to florida for a few days”. that is not what these payments are for; they are to complete the job or at least advance it. we are not supposed to take this money to go on trips or buy new cars or stereo systems. they make this very plain to us when we get our DCA license. i suspect (i am not a lawyer) that if someone uses a clients money for personal things during a job like this, it could become “criminal” (if someone “did” it to me, i would try to see where the money went and make a case for it). i am not sure how they would prove that or make that case or where the line would be between what is acceptable to keep the job going (utilities and phones, etc) and what is not (trips to florida).

what i am saying is there is a difference between being stupid or careless and being a “crook”.

OP, if you think these people took this money with bad intentions or did things they should not have or had no intent to perform in a way to complete this job, I would talk to an attorney and find out what your options are. maybe they will know how to put pressure on government agencies that can help you. they license these people and they should be dealing with the mess and if they are not licensed we have to pressure the licensing agency to shut them down.

you mentioned “judegement proof”; if you can make a case for criminality, they may do whatever it takes to get you off their backs.

Lurker | 3 years and 11 months ago

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That’s not the whole case card01. DCA will attempt negotiation, and then they have the power to sanction contractors. Our contractor ended up paying us many thousands back and then lost his license a few months later.

hasibur.rahman07 | 3 years and 11 months ago

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All I was saying was DCA won’t resolve any issue for you other than facilitating conversation. Perhaps that’s helpful however.

classc1 | 3 years and 11 months ago

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Thank you all. I do appreciate this. It’s hard to see your life’s savings and life’s hard work being stolen in front of your eyes. I appreciate all of the advice.

classc1 | 3 years and 11 months ago

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Yes but my concern is that they are not contractors. The actual contractors are not the problem. They cheat them and don’t pay. One already walked off and another might soon. So, I don’t need to mediate with the contractors, but these owners! I’m taking all that was said and I am researching to see if they have an actual contractors license.

hasibur.rahman07 | 3 years and 11 months ago

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The DCA mediates between you and the contractor – do you want to mediate with them?

classc1 | 3 years and 11 months ago

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Sorry I signed the contract with the business. The business name is on the contract. They have a website.

classc1 | 3 years and 11 months ago

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Oh… The alleged owner of the business is the mother! I’m Sure to avoid legal liability as she’s probably judgment proof.

classc1 | 3 years and 11 months ago

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I have to look at exactly who pulled the permits. They have a business. Claim to work with licensed contractors which is what makes me think they themselves don’t have a license. Claim to bring wealth building to disadvantaged areas. Claim to work with licensed contractors which is what makes me think they themselves don’t have a license. Claim to bring wealth building to disadvantaged areas. Allegedly they have insurance for the project but I honestly have not seen it. They were recommended by our architect. He’s equally fed up. They are definitely crooks.