Need guidance/help...remodel contractor gone wrong... (1 Viewer)

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Joined
Jun 29, 2006
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4,394
Location
Carolina Beach NC
I've been going through a very extensive remodel on my little '57 cinderblock beach bungalow, taking it to the slab and rafters. Took 4 bids, accepted the contractor that did my kid's kitchen and floor remodel, not highest, not lowest but claimed to have everything in house so no scheduling of sub-contractors that can slow a project's progress. Signed a contract that was very well put together, giving me more trust after finding many contractors down here don't offer a contract.

7 weeks later, finishing up, get final invoice (1/3 to schedule, 1/3 start day, 1/3 completion) despite a couple issues being outstanding, ~$1k over expected final 1/3 do to some extra paint trim work but...was told to expect a seperate invoice for electrical/HVAC, WTF?

I have no contract with this (what turned out to be) sub-contractor, no idea he was a sub and is now expecting payment from me. Fortunately, I do have old friends with experience in law, contract law is relatively simple and NC law seems very clear.

Full disclosure, I feel taken advantage of by a predatory contractor. Upon introduction to the electrician/HVAC person, I got "up-sold" more lighting and moving the HVAC registers to the perimeter of the home instead of down the middle of the room they way they built them back them, such that I expected a "change order" to be made or modification to the original estimate/contract, even after I expressed my anxiety to the office manager, saying it will "all work out in the end".

Now, the GC says they credited back the electrical/HVAC in the original contract, made modifications to the final payment and expecting me to pay them while the electrician/HVAC guy is holding his hand out for work I never signed off on, get an estimate for nor agreed to a price for said work I was up-sold. This is all to a tune of putting me 20% over budget without notice.

My attorney friends (in CA and DC) have their opinions, I'm opening up to my trusted ONSC crew who has vast expertise in many arenas and may offer me some insight to deal with this situation. I'm not happy feeling taken advantage of but I'm not a thief and will fairly compensate for the work that was completed. It's how to come to that point without wasting time in arbitration/court.

Thanks in advance for any advice :beer:
 
Jerry start at the beginning:
1. Is he a licensed in the state of NC?
2. If so, what classification (Building or Residential) and what is the limitations of his license There are 3 limitations ( Limited, Intermediate, and Unlimited) Does the total contract fall within one of those limitations? My first thought is he separated the building contract from the Electrical/HVAC contract in order to not to exceed the limitation on his license.
 
Next. What type of contract with the builder do you have.
1. Fixed price
2. Cost plus a percentage
3. or the least likely I hope. You paid the bills and he charged you a fee to "manage" the job.
 
An important piece of information. Was his total contract less than the the maximum amount an unlicensed builder can perform? The state requires a license for any project who's total cost is $30,000.00 or more.
 

Steve represented the company I worked for. Tends to work towards the least expensive option.
If you want or need big guns this guy > M. Keith Kapp | Commercial Litigation Attorney in Raleigh | Williams Mullen - https://www.williamsmullen.com/people/m-keith-kapp does not play. Very expense. Very aggressive. Has made a fool out of more than one adversary. He will not personally handle your case. It will be assigned to an attorney within the firm. Keith just acts as director. If you retain Keith you will definitely have the opposing counsels attention. He handled 4-5 cases for us.
 
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Thanks, I can't believe I can't find his license number now. I swear I had it but I got 4 different estimates and I may have substituted and not realized I signed a contract without a license. Makes me wonder, scrutinizing the contract and wondered why a "category" was listed as painting while the description was listed as install new kitchen cabinets, re-route plumbing, install tankless water heater, etc...dodging manner and scope of project?

Fixed price
$50k (which I knew would put him into GC license territory)
Even if he rolls out the electrical/HVAC, still over that threshold.

Thanks for the referral, I hope I don't need to go that path. My suggestion to them (from a friend who does books for another electrician) will be to request daily work tickets, written in layman's terms with receipts with proper letterhead from sources acquired.

People suck...not you...thanks again :beer:
 
He couldn't get building permits without a license could he?
 
This sucks bad. Sorry.

Permits (minus electrical) can be pulled by homeowner if construction costs are less than 50k (at least is Durham). Anyone acting as a GC requires license and insurance / bond (last I read it was 50k cash). Unfortunately none of this stops some asshat from not following the rules.

None of that really helps you though. I‘d be referencing your contract with the GC and any ‘change orders’ then considering consulting an attorney. Definitely sucks, sorry.
 
This sucks bad. Sorry.

Permits (minus electrical) can be pulled by homeowner if construction costs are less than 50k (at least is Durham). Anyone acting as a GC requires license and insurance / bond (last I read it was 50k cash). Unfortunately none of this stops some asshat from not following the rules.

None of that really helps you though. I‘d be referencing your contract with the GC and any ‘change orders’ then considering consulting an attorney. Definitely sucks, sorry.
No "change orders" until they issued the final invoice, none that I initialed/authorized/ok'd verbally, they made whatever change orders to accommodate what benefit/gains they want and expecting me to accept them.

Yes, I'll be reaching out to the reference(s) above tomorrow, they sent another invoice reminder this morning, kind of aggressive when the project isn't even complete (2 relatively small things but, not complete) so, yeah, I'll pony up for some professional help.

Appreciate everyone's guidance :beer:
 
Thanks soooo much for the referral Tom (edited to fix my bad memory :bang: )spoke to the attorney recommended (Steve) he gave me lots of his time, great advice and let me know I could screw them, walk away (being they acted as a GC over $30k job) but…I don’t want something for nothing.

After sharing my newly acquired knowledge, negotiations went south where he threatened to remove his work (really?) and call my daughter (WTF!) since she referred me (another WTF!) and I didn’t react well to such threats.

Then his wifey called, begging for an audience with their office manager for a “peaceful“ resolution. We have seemed to have renegotiated to each other’s satisfaction and let the drama end.

Another sad story of contractors dancing the legal line, dodging bullets for the next victim…
 
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Thanks soooo much for the referral Tim…spoke to the attorney recommended (Steve) he gave me lots of his time, great advice and let me know I could screw them, walk away (being they acted as a GC over $30k job) but…I don’t want something for nothing.

After sharing my newly acquired knowledge, negotiations went south where he threatened to remove his work (really?) and call my daughter (WTF!) since she referred me (another WTF!) and I didn’t react well to such threats.

Then his wifey called, begging for an audience with their office manager for a “peaceful“ resolution. We have seemed to have renegotiated to each other’s satisfaction and let the drama end.

Another sad story of contractors dancing the legal line, dodging bullets for the next victim…
Glad it all worked out
 
Thanks soooo much for the referral Tom (edited to fix my bad memory :bang: )spoke to the attorney recommended (Steve) he gave me lots of his time, great advice and let me know I could screw them, walk away (being they acted as a GC over $30k job) but…I don’t want something for nothing.

After sharing my newly acquired knowledge, negotiations went south where he threatened to remove his work (really?) and call my daughter (WTF!) since she referred me (another WTF!) and I didn’t react well to such threats.

Then his wifey called, begging for an audience with their office manager for a “peaceful“ resolution. We have seemed to have renegotiated to each other’s satisfaction and let the drama end.

Another sad story of contractors dancing the legal line, dodging bullets for the next victim…
Glad to read this Jerry. Sometimes folks just need to be called on their BS and then you can both be fair. Many others would have walked, and in my mind that's almost as bad. Karma is taking notes.
 
Glad to read this Jerry. Sometimes folks just need to be called on their BS and then you can both be fair. Many others would have walked, and in my mind that's almost as bad. Karma is taking notes.
I’m sure I can use all the positive Karma I can deposit and humble when I can be :beer:
 
Sorry you are dealing with BS from your contractor.
I typically do most remodels and work myself for that exact reason.
My wife used to always get overcharged when I would be deployed and needed to hire a “professional”
 

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