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Old 06-11-2013, 09:54 PM   #1
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Contactor request, not sure how to handle?


We signed a contract for siding replacement on entire house. We have one final payment due upon completion totaling $4000. Front portion of house still needs to be completed. Contractor says he underbid job but takes complete responsibility. He's asking us to pay for the materials needed to complete job that totals $3000 and he want us to pay that directly to lumber company. He'll says he'll deduct this from balance due which will leave us owing $1000 once job is completed. Not sure if I should go along with his plan.

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Old 06-11-2013, 10:09 PM   #2
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Contactor request, not sure how to handle?


Sounds like he's operating on a shoestring and robbing Peter to pay Paul. I have accounts at wholesale supply houses. When I pick up material or have it delivered, I don't get an invoice for 1-2 weeks or more, depending on which one it is. Normally about 30 days to pay.
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Old 06-11-2013, 10:15 PM   #3
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Thanks Mike, I appreciate your feedback very much.
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Old 06-11-2013, 10:22 PM   #4
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Here's the bottomline, Hawk ( EDIT:Strike Hawk... I meant Ginger), are the materials ordered and DELIVERED worth over $3000. You are putting out $3000, apparently for a contractor who no longer has credit, yet you want to get the job done.

What you have spent to date is a sunk cost, from this point in time, you do not want to risk more. Make sure you do not put out more than value received (materials delivered) to protect yourself.

Additionally, I did not note your state, but your supplier could have a Materialman's claim (MM claim) against your home for unpaid materials previously delivered.

If you decide to purchase those materials directly from the supplier, go down and determine if you have an outstanding balance/claim for previous materials.... and get a satisfaction of payment for all materials (or whatever your state calls it). Do not just write a 2 party check to your contractor... he may be paying for previous materials.

Sorry to be hard, but sometimes it's you that chokes on that shoestring budget.

Best

Peter
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Old 06-11-2013, 10:27 PM   #5
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Hawk.... Where ya from... how's Cleveland doing... I grew up in Cleveland Heights... long, long, time ago....
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Old 06-11-2013, 10:36 PM   #6
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Thanks Peter. I'm in California. He said he underbid job by $3200. I paid him $13,500 at start of job. Two more payments of $4200 each and the final is $4000.
Red flag is requesting money before completion and he wants us to pay lumber company directly. He needs to find a way to get the materials without asking us, right?
Thanks for your time
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Old 06-11-2013, 10:58 PM   #7
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Thanks Peter. I'm in California. He said he underbid job by $3200. I paid him $13,500 at start of job. Two more payments of $4200 each and the final is $4000.
Red flag is requesting money before completion and he wants us to pay lumber company directly. He needs to find a way to get the materials without asking us, right?
Thanks for your time
Actually, I kinda remember, and can look up if necessary, Ca MM law.

Ca has a MM and specifically (in your case)a materialman's claim against you (technically your property only) for any unpaid materials designated as delivered to your job.

To maintain their claim, as a supplier, all they have to have done is send your address a letter saying they were supplying materials within maybe 20-30 days of having done so. That is by regular mail, you do not have to have received it (ie noproof of delivery) In all practical considerations, IT IS YOUR RESPONSIBILITY TO ENSURE YOUR SUPPLIERS HAVE BEEN PAID.

I suggest you contact them immediately to find out if they have been paid.!!!!!

Look up "mechanics and materialmans lien claim law in Ca".

(Maybe everything is up and up and your contractor does not have credit for some other reason... but it is a bad warning sign!!!!)

Best

Peter
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Old 06-11-2013, 11:09 PM   #8
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Excellent advice Peter. I will contact them first thing in the morning. Appreciate your help.
Best to you,
Ginger
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Old 06-11-2013, 11:20 PM   #9
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Excellent advice Peter. I will contact them first thing in the morning. Appreciate your help.
Best to you,
Ginger
Good going.... be smart and cautious... I'm sure you will.

Peter
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Old 06-12-2013, 04:54 AM   #10
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Contactor request, not sure how to handle?


Just how big a house is this and how many storys? What type of siding is it? That info is just me being nosy and seeing how differant pricing is in differant areas.
$3000.00 will buy a whole lot of siding.
If where all honest anybody in the trades has been caught in a money crunch or under bid a job for one reason or another.
I know I have.
EG; I laid out 3 weeks of labor waiting for the customer to show up to pay me my next draw, week after week it was a new excuse why they never showed up or mailed me a check even though the man next door was keeping track of what was being done and emailing her pictures of the job so she knew we where there working in 100 plus deg. heat.
She shows up and says I do not have the money to pay you because my husband bought my daughter a new car without her knowing.
Where loading the materials to return them to the vender so I can at least get credit to lower the amount or of my bill and she calls the cops on me and I told to leave the property.
She then trys to return the same materials and wants cash for them, even though they had been put on my account.
Then she trys to sue me for not completing the job, which did not work.
So then she tryed to sue me for not using the right materials, which once again did not work out because I had over sized and under spaned everything and proved it.
Then she hires a bunch of out of town Mexicans to complete the job.
Once done she could not get a C/O because they had cut off the rail post as per her orders. She had been told by me several times and by the building inspector that there needed to be railing since it was 48+ high.
I ended up with a lein on the house, but you can not pay bills with that.
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Old 06-12-2013, 07:17 AM   #11
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Joe.... You're sure correct.... it happens both ways.... bad clients and bad contractors exist in the world.... you just have to be as knowledgeable as possible .... and take actions to protect yourself.

Your story points out an a real irony... Most or many times, no one comes out ahead (except maybe the attorneys (no offense MPOUL.... the world needs good attorneys also)) when one party is less than honest, or has gotten in trouble.

Best

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Old 06-12-2013, 08:00 AM   #12
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Great thread----
One item few homeowners ask for is the 'lien waver'---that is the fancy name for the item that Mountain mentioned---

That is a legal receipt that your contractor should provide you with.


When I have concrete work done,for example, I get a lien waver from the foundation guy that shows the concrete was paid for----

This is standard practice and should not be a problem for your contractor to provide.
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Old 06-12-2013, 08:12 AM   #13
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Originally Posted by oh'mike View Post
Great thread----
One item few homeowners ask for is the 'lien waver'---that is the fancy name for the item that Mountain mentioned---

That is a legal receipt that your contractor should provide you with.


When I have concrete work done,for example, I get a lien waver from the foundation guy that shows the concrete was paid for----

This is standard practice and should not be a problem for your contractor to provide.
In Oregon it's required, along with informational notices about liens and other consumer/contractor protection material which the customer receives at the time of signing the contract.
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Old 06-12-2013, 08:20 AM   #14
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In Oregon it's required, along with informational notices about liens and other consumer/contractor protection material which the customer receives at the time of signing the contract.

Ya know Kwik.... I'm not fond of a lot of required governmental paperwork.... but I think your state is very smart in requiring those disclosures, hopefully in friendly explanatory language.

Very few HO's are aware of MM law, and simple clear disclosure is good for both the consumer and the industry.... keeps some of the scammers out of the industry, and MM law is intended to protect us in the industry.

Peter
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Old 06-12-2013, 08:28 AM   #15
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I just finished a small addition for a homeowner.

He is very naive about home building and was clipped by a 'cheap' contractor before I got involved.

He was very interested when I said that no subs will get the final payout without a lien waver.

He liked that---it costs nothing for me or the sub--and his property is protected--win-win

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