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General contractor and warranty????

YanksIn2009 3,105 773 August 1, 2016 at 07:41 PM in Home & Home Improvement
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OK, not to go into a long story, but I have a general contractor doing construction\work on a new investment home and have decided to let him go because of non-performance (i.e., work is very late and he has repeatedly missed opportunities to remedy the situation). I can obviously withhold the last payment (work is about 80-90% done).

That said, cost over runs as a result of the switch notwithstanding, but does anyone know how the builder's warranty is handled in a situation where one GC takes over from another in the middle of a project? I assume the new GC will take that over too after doing whatever checks\changes they need and charging me for them\the policy they take out????

Also, anyone have any experience in suing a GC for this type of thing to re-coup some of the overages? First time I have had this happen to me (thankfully).

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#2
That's why you put reduction in payment for each day/week it goes over the agreed finish time. Or something about termination.

This is one court case I wouldn't want to be you.

The best outcome would be, he's paid up to the date you let him go.

How do you convince a judge that he intended to defraud you? AND at 90% completion?
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#3
Quote from stufine View Post :
That's why you put reduction in payment for each day/week it goes over the agreed finish time. Or something about termination.

This is one court case I wouldn't want to be you.

The best outcome would be, he's paid up to the date you let him go.

How do you convince a judge that he intended to defraud you? AND at 90% completion?
My main issue is how one handles the turnover of the warranty which will get passed onto a buyer. Not familiar with that process though I will find out I assume once I get some contractors in to give me a quote.

As to suing him, you have to show he has not completed the work and made no or insufficient attempts to remedy in a timely fashion. He is well past the date (like 3 months). And the items not done and delays are well documented. He is not even debating the issue of being late and not in compliance and admitted the reason for it is that he screwed up and is out of money. I am obviously not giving him more money so the only option is to get rid of him and move on. Add in that I have carrying costs on the property, so the longer I wait, the more it costs me. I am not expecting much on the legal front as it likely is not worth the trouble, though I am curious what if any luck others have had.
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#4
Quote from YanksIn2009 View Post :
My main issue is how one handles the turnover of the warranty which will get passed onto a buyer. Not familiar with that process though I will find out I assume once I get some contractors in to give me a quote.

As to suing him, you have to show he has not completed the work and made no or insufficient attempts to remedy in a timely fashion. He is well past the date (like 3 months). And the items not done and delays are well documented. He is not even debating the issue of being late and not in compliance and admitted the reason for it is that he screwed up and is out of money. I am obviously not giving him more money so the only option is to get rid of him and move on. Add in that I have carrying costs on the property, so the longer I wait, the more it costs me. I am not expecting much on the legal front as it likely is not worth the trouble, though I am curious what if any luck others have had.
It really depends on the situation. These are so fluid there isn't a end-all-be-all answer. Typically you have an option of going through his bonding if the work was faulty.

You can go after his license should you feel defrauded.

I'm not sure what you are meaning by enforcing the warranty. This should be easy to determine. If this particular contractor is issuing the warranty himself and you let him go, I can't foresee any possibility that a term warranty will apply. If the warranty is underwritten by a third-party they will have terms and a contract that should cover this.

This is one of those unfortunate life lessons that picking the RIGHT contractor is critical. A long history and reputation go a long way. I find it's generally easy to see if contractors have cash flow issues or not. It's extremely uncommon for these contractors to not have delays and or payment issues with previous jobs. References, references, references.

I'd say at this point your likely outcome will be to hire another contractor to finish. Maybe they will provide some sort of warranty but you may end up having to ditch much of the warranty idea unless you have more information that you are not providing.

Good luck!

EDIT: And when I say check references. Do a good due diligence process. I always hear that people "have done that". But If I can find out in 5 minutes that they are having problems paying subs on another job, said person didn't do squat for reference checking. Which is extremely common I'm finding out, unfortunately.
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#5
100% based on the contracts you signed and any state laws.

to be honest references are garbage, they only give you raving reviews. what you want is the last 3 jobs they completed and the dates they were completed. or a referral from a trusted friend or work associate.

i had this happen to me too. didn't fix some things and finish molding work. withheld final payment (which was half of the contract) and never heard from him again. told him the contract wasn't fulfilled until he corrected the items and finished the job. never heard back from him and he didn't respond to a letter (sig deliv, sent like 6 months later) that i would consider the job/contract forfeited if he did not complete the items in 30 days. live and learn.
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#6
Warranty for what?

Take the roof contractor #1 put on in 3 years the roof leaks, Corning comes out and says shingles were not nailed properly, contractor#1 nailed below the line where it should have been nailed causing failure. Contractor #2 is going to say I did not install the roof I am not going to fix it.. You need to look at your contract with contractor #1 and see what it says about warranty the contract is not void because your terminated the contract.

Anything contractor #1 completed that he agreed to warranty should be covered, anything contractor #2 did 100% should be covered. MFG warranties should all be in place as long as you have all your paperwork and permits in place/

More than likely contractor #1 will have shut down and changed names in a year anyway so the warranty is only from the MFG if anything.

Of course state law could say something different but contractors change names close reopen all the time.
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