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Remodel invoices, liability and liens

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legallearner

Junior Member
What is the name of your state (only U.S. law)? WA



We have a two-phase remodel that has been going on for a year and a half. Phase one is over a year overdue (it was supposed to have been done Dec. 2010). Phase two was supposed to have been done July 2011. Both parts are flat bid, even though I suggested cost-plus so expenses could be tracked.

My questions are:

1. Am I entitled to see invoices or an accurate recap of expenses? For instance, if I get a bill for geotech work of $11,000, then shouldn’t I be entitled to see that that is really what the geotech charged my contractor? Shouldn’t progress billings match up to reality instead of made-up numbers? My contractor seems to have fuzzy math and his progress billings have money allocated, for instance, to exterior paint, even though that is no where near ready to be started. He has said he needs to make up for mistakes that his subs have made (and he has had to pay for the re-dos), so I am wondering if I’m getting puffed-up additional work orders.

2. For part of phase two, he needed to remove a Trex ramp that provided access to our backyard from the side – our house is built into a hill. The previous ramp had a gentle slope, and the kids could ride their scooters down it, etc. The replacement ramp, which he built without consulting us as to our desire for slope, is very steep and unsafe for kids to ride their toys down. While it was being framed, we told him the angle was too steep, but the next thing we know it is completed. Plus, we had made it clear in the deck design phase that the replacement ramp needed to be the auxiliary access for our elderly parents to the backyard since our new deck will have a spiral staircase, which is harder for older folks to navigate. Two questions: he says it will be minimum of $1500 for him to redo the ramp – if he didn’t consult us as to what we wanted, we voiced our concerns before it was built, can he charge us for it? And, more importantly, I’ve told him I think the new, steep ramp is a liability suit waiting to happen. If something does and someone wants to take action against us, can we turn around and take action against him since we voiced our concerns before it was started and completed?

3. Is there any recourse for a project being overdue by a year, not one bit caused by us, and entirely caused by the contractor and his lack of oversight of his subs? We’ve met his deadlines for everything, and alerted him to potential problems (like the heat ducts were hooked up without heat coming out – we told him heat was not coming into the rooms, yet he went ahead and let drywall go up that ended up have to be cut-through, the heat system re-ducted – and that is one example… the porch concrete had to be poured, dug-up, and repoured four times, etc.)

4. I’ve asked him for lien releases. However, he says that if it has been 90 days or more since a subcontractor or supplier has been on the property or supplied goods, then a lien release is not necessary and that the statue of limitations would rule over any lien placed. Is this true?


Sorry for the length, but I wanted to be thorough. If anything, I’d really like advice on questions 1 and 2 (ability to review invoices and potential liability). Thank you!
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? WA



We have a two-phase remodel that has been going on for a year and a half. Phase one is over a year overdue (it was supposed to have been done Dec. 2010). Phase two was supposed to have been done July 2011. Both parts are flat bid, even though I suggested cost-plus so expenses could be tracked.

My questions are:

1. Am I entitled to see invoices or an accurate recap of expenses? For instance, if I get a bill for geotech work of $11,000, then shouldn’t I be entitled to see that that is really what the geotech charged my contractor? Shouldn’t progress billings match up to reality instead of made-up numbers? My contractor seems to have fuzzy math and his progress billings have money allocated, for instance, to exterior paint, even though that is no where near ready to be started. He has said he needs to make up for mistakes that his subs have made (and he has had to pay for the re-dos), so I am wondering if I’m getting puffed-up additional work orders.


**A: there is no requirement to provide subcontractor info on a fixed bid. If it was cost plus then the contractor needs to provide to substantiate his costs. And yes, progress billings should conform to progress of work actually completed. For example 20% of the work is completed, the billing is for 20%
of the contract value. corrective work due to mistakes by trades should come out of the contractor's pocket and not the homeowners.

##############

2. For part of phase two, he needed to remove a Trex ramp that provided access to our backyard from the side – our house is built into a hill. The previous ramp had a gentle slope, and the kids could ride their scooters down it, etc. The replacement ramp, which he built without consulting us as to our desire for slope, is very steep and unsafe for kids to ride their toys down. While it was being framed, we told him the angle was too steep, but the next thing we know it is completed. Plus, we had made it clear in the deck design phase that the replacement ramp needed to be the auxiliary access for our elderly parents to the backyard since our new deck will have a spiral staircase, which is harder for older folks to navigate. Two questions: he says it will be minimum of $1500 for him to redo the ramp – if he didn’t consult us as to what we wanted, we voiced our concerns before it was built, can he charge us for it? And, more importantly, I’ve told him I think the new, steep ramp is a liability suit waiting to happen. If something does and someone wants to take action against us, can we turn around and take action against him since we voiced our concerns before it was started and completed?

**A: the contractor may be entitled to a change order for unforseen conditions. And the problem should not have occurred if there were approved building plans and specifications. Where are the plans and specs? I there a building permit for the work? Or at least a sketch and description in writing of this ramp that would be attached as part of the construction contract.

###########

3. Is there any recourse for a project being overdue by a year, not one bit caused by us, and entirely caused by the contractor and his lack of oversight of his subs? We’ve met his deadlines for everything, and alerted him to potential problems (like the heat ducts were hooked up without heat coming out – we told him heat was not coming into the rooms, yet he went ahead and let drywall go up that ended up have to be cut-through, the heat system re-ducted – and that is one example… the porch concrete had to be poured, dug-up, and repoured four times, etc.)


**A: maybe, but what clauses are in your written contract for completion dates, time is of the essence, penalties and delay damages for missing the completion date etc.?


#########

4. I’ve asked him for lien releases. However, he says that if it has been 90 days or more since a subcontractor or supplier has been on the property or supplied goods, then a lien release is not necessary and that the statue of limitations would rule over any lien placed. Is this true?

**A: possibly, but you are entitled to the lien releases regardless. And all a sub or supplier has to do is either go to the property to work or deliver a building material and the lien time period begins again.


############

Sorry for the length, but I wanted to be thorough. If anything, I’d really like advice on questions 1 and 2 (ability to review invoices and potential liability). Thank you!

**A: read your contract again.
 

legallearner

Junior Member
Thank you for your response!

Some more info and clarification:

First, this guy was a friend of ours (we now know why business and friendships don't mix). So, he has basically said his progress billings don't match reality and his contract is meaningless. We gave him a verbal due date. But, if he is billing us large amounts of money for things he says the city is making him do to conform to permitting requirements, shouldn't we be privy to those charges?

He has said he has lost his margins due to the redos, but we remind him that they were due to his lack of supervision, nothing on our part.

For the ramp question -- the ramp is not in the plans because ours was not to be replaced. But, his guys destroyed it moving things on it, so it had to be taken down and rebuilt. He did not consult with us on the placement or angle of the new ramp, and the new one is at a pretty steep angle. So, if someone does get hurt on it, and takes action against us, can we take action against him for building an unsafe ramp without our permission?

Lastly, regarding lien releases -- he has had so many subs in here, I don't even know who to ask for a lien release from. The electricians, painters, carpenters, etc. who started on the job are long gone and not the ones who are finishing it. He won't tell me who he is dealing with and they are not allowed to give me their cards, so I don't know who is involved. How can I find out who the suppliers/subs are so I know I am getting lien releases from everyone who has been involved? And, he is really pushing this 90-day statute of limitations as a reason he does not need to get us lien releases.

And, for warranty reasons on major items like the roof, how can I get him to provide me with the manufacturer/warranty provider for these things? I now think he is on his way out of the business (he's mentioned that a few times in the last few weeks), so if something goes wrong a few years from now, contacting him won't do any good.

Thank you so much.
 

HomeGuru

Senior Member
Thank you for your response!

Some more info and clarification:

First, this guy was a friend of ours (we now know why business and friendships don't mix). So, he has basically said his progress billings don't match reality and his contract is meaningless. We gave him a verbal due date. But, if he is billing us large amounts of money for things he says the city is making him do to conform to permitting requirements, shouldn't we be privy to those charges?

He has said he has lost his margins due to the redos, but we remind him that they were due to his lack of supervision, nothing on our part.

For the ramp question -- the ramp is not in the plans because ours was not to be replaced. But, his guys destroyed it moving things on it, so it had to be taken down and rebuilt. He did not consult with us on the placement or angle of the new ramp, and the new one is at a pretty steep angle. So, if someone does get hurt on it, and takes action against us, can we take action against him for building an unsafe ramp without our permission?

Lastly, regarding lien releases -- he has had so many subs in here, I don't even know who to ask for a lien release from. The electricians, painters, carpenters, etc. who started on the job are long gone and not the ones who are finishing it. He won't tell me who he is dealing with and they are not allowed to give me their cards, so I don't know who is involved. How can I find out who the suppliers/subs are so I know I am getting lien releases from everyone who has been involved? And, he is really pushing this 90-day statute of limitations as a reason he does not need to get us lien releases.

And, for warranty reasons on major items like the roof, how can I get him to provide me with the manufacturer/warranty provider for these things? I now think he is on his way out of the business (he's mentioned that a few times in the last few weeks), so if something goes wrong a few years from now, contacting him won't do any good.

Thank you so much.

**A: ask him for the list of subs and their contract info. Ask him for the list of building material manufacturers and their contact info. On the ramp, you need to resolve it now.
 

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