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Old 03-21-2011, 05:35 PM   #1
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I have a serious problem with a contract project I have in GA-professionals please he


My name is Edward Spacer and I am a professional contractor.I bid and obtained a job in Ray City,GA to convert a garage into a mother-in-law suite.its a mess.There are somethings I admit I did wrong,but in the twenty years or so that I have been doing this,I never ever ran into this sort of thing before.The original estimate before bid was for $8,000.00 and half to be paid up front,materials and labor,and the final pay to be alloted when the job is finished.The actual contract that was signed stated materials,but I had to hire a subcontractor,and he wouldn't work unless there was a $500.00 deposit for his labor. Fine,out of the initial deposit was a 33% for labor,which was $1,500.00 out of the first deposit.That left an amount of $2,500.00 for materials.I had set a certain constriction schedule,sources of where my materials come from,and yes,they would have been obtained peacemeal,but the materials deliveries financially and timewise flowed within the schedule and pricing listed.But,this is the start of where things went wrong:

1 week delay the bank took to finally release the funds from the account.This delayed purchases and deliveries.The project scheduled to start on March 1st according to contract,and was for three weeks afterwards.

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Old 03-21-2011, 05:44 PM   #2
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Old 03-21-2011, 05:55 PM   #3
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Then,what happened,is the subcontractor started going out of his bounds to suggest work additional with the homeowner behind my back,used certain amount of the materials money for specific drywall gun screws(hell a bucket of regular screws at LOWES for umteenth amount of thousand was only 10 bucks)and making and convincing suggestions outside of my work outline with the contract and homeowner and convinced the homeowner about having to do additional work that was NOT necessary.Now,these suggestives inflated the costof the materials,which I had my suppliers under control,went to the box stores,and spent the first 1260.00 on materials,another 695.00,and then 1408.00 and another 300 or so in drywall,which per the contract was required.It added up 800.00 more out of pocket beyond the initial deposit,and I sent concession contract to homeowner to do a free attic insulation installation in the main part of the house.In any event,I had contracted with the subcontractor to pay him 500 down for labor plus 1400 when final payout was to take place.What happened,and yes,it is my responsibility and my control,but he then was demanding 40 a day for gas,which since capital was restricted to what waa given to us,and his truck broke down,and delayed the project for a week and two days.Now,I know the GA law allows a cerrain percentage for contract overage beyond original and that a finish delay is allowed with self imposed penalty,but with the inflation of materials costs(e.g.% had the molding set at 500,but because the HO listened to the sub instead,paid almost 900 for it)but now the sub quit,was talking to the HO behind our backs the whole time,gave only four days of work,and now,even outlining the incease cost of materials beyond estimate,HO refuses to pay anymore,and even though I have literally lopped off a thou off labor to do the job,which I never ever lacked performance of completing,the HO is trying to dissuade me from completing the job,which I have two days left according to original contract,and NOT buy the rest of the materials required.I know the law provisions me a delay time from job completion,but I need to know exactly how long it is,and what law references this delay...the HO is trying to hire out to another while we are still in contract.HELP.
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Old 03-21-2011, 06:02 PM   #4
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always,when I had had a job previously,the HO or PO always understood when there was a dramatic decrease or increase for materials.The original agreed labor price for the job was 4,500.00,and had penalized myself 1,000.00 to complete the job,because GA law I know allows for that with specific penalties certain completion delay times are allowed.I just need to verify what the exact timing is that I am entitled to extend the project, as well as what my rights are in this state.The HO will not even allow me to come on site to work now,and is using a delay tactic of verifying my creds and references again when this had already been done and checklisted before contract inception.
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Old 03-21-2011, 06:06 PM   #5
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Even with the proposed exact materials cost,with my penaltues,would only increase the contract 15% from 8,000.00 to 9212.00.My labor charge did NOT CHANGE,but decrease.Most contractors around here would easily have charged double if not more than for the project.
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Old 03-21-2011, 06:07 PM   #6
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I have a serious problem with a contract project I have in GA-professionals please he


Youíve been a contractor for twenty years and canít control a loose cannon sub and HO.

Just reading your rant, well ÖÖ.

You do know this is a DIY Site donít you.

If you need help changing your light bulb or something we can help.
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Old 03-21-2011, 06:11 PM   #7
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So after twenty years in the business...did you hire a sub you weren't familiar with or did you know this sub and have experience with him? I can't understand why YOUR sub would torpedo you from the posterior side. That doesn't make any sense.

Also sounds as if you don't have (or no longer have) a suitable working relationship with your customer. Any way to mend that real quick?

How about you get all your paperwork together and have a meeting with the customer and lay it all out on the table. Something is wrong here somewhere.

Why on earth would you knock off 13% for an insulation job and do it for free. Hell you didn't have 13% profit in the job to begin with.
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Old 03-21-2011, 06:12 PM   #8
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all my freaking years never had to control a sub or HO..most HOs just required in writing where the increase was for,as long as it was in the contract,and sign off on it,not refusw for the simple fact of what the contracted amount of the job was vs. What was required for materials for each itemized task list contracted to be completed for the job.
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Old 03-21-2011, 06:15 PM   #9
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The HO is a rigid prick pardon my french and doesn't understand what happens are that materials are variables and can increase/decrease..the contract is with him and he is working on behalf of his mother in law,qho only set aside chunks of the contract money piece at a time,without assurance that it was all there,wvwn with an adjustmwnt when I asked for the adjusted materials amount,he stated she wouldn't cough it up because of what the contract stated materials were.
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Old 03-21-2011, 06:20 PM   #10
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it's the money thing that the guy wants to dump me,and not even allow me to work the job even while under contract.Is it not by law,with the allowable extension by law,that he would have to buy out a certain percentage of my final labor to get rid of me? My work was WAY BEYOND the code that was done already,and they simply don't want to pay the additional cost for materials.I have never ever had a complaint or suit,and for posterity I want to complete the job,even taking a loss,and now the HO will not allow me on site to work(now not communicating)what are MYrights?
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Old 03-21-2011, 06:21 PM   #11
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This isn’t the place for this.

http://www.contractortalk.com/ Is where you should be posting.

Good Luck.
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Old 03-21-2011, 06:23 PM   #12
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sorry for that..its just that I am grasping at straws,and being in the pattern of all professionals I thought I could square off an opinion.In no way am I looking to leave the job or screw the HO.
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Old 03-21-2011, 06:26 PM   #13
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I have a serious problem with a contract project I have in GA-professionals please he


Quote those damned jobs "lump-sum" and never tell the customer the cost of any materials. Get a deposit then also get weekly or bi-weekly draws based on percentage of completion and YOU determine the percentage. If the draw isn't paid on time the progress stops immediately until the draw comes and the check clears the bank. You make the rules and YOU enforce them. Hard ass I know but every once in a while you run into a whining customer whose only objective is to gain an unreasonable discount after the fact.

This crap is why you have written agreements to begin with.
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Old 03-21-2011, 06:43 PM   #14
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Edward----This is a DIY site so I'm going to close this and ask you to re-post over at CT.
Contractor Talk - Professional Construction and Remodeling Forum

Before I close this,I wish you well. -----Mike-----

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