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Can a General contractor hire an unlicensed contractor in Arizona? Replace roof, water damagedceilings- Ins. Claim

Arizona

I hired a Licensed General contractor who hired an unlicensed contractor & represented him as Licensed. The substandard work took over 9 months & caused more damage to our home. The AZROC required the work that was done be repaired. The General contractor is demanding $10,000. More than orginal contract & charging for work Not performed. Is this Legal??

4 replies

Jun 8, 2020
There are two separate issues. Can the GC collect for work performed by an unlicensed subcontractor? Yes. It may be illegal for the subcontractor to operate without a license, but that does not mean a project owner can simply keep the value of the work performed without paying for it. Can the GC receive compensation for work that was never performed? No. But keep in mind the fact that the amount claimed is more than the contract price does not necessarily mean the GC cannot collect for the work. If, for example, the owner signed a change order or the GC followed the procedure in the contract for changes to the scope or cost of work, then it's possible the additional charges are owed. It would depend on what happened and what the contract says.
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Jun 8, 2020
I paid the GC $9000.00 when I deduct for the Line Items on the Insurance paperwork that weren't done I don't owe anything. Also when I include the cost to clean up, repair the sub standard work & Damages caused by substandard roof they owe me. I have not been enriched. Ive los money & still have Damages to repair to ceilings & roof structure.
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Jun 8, 2020
Please note: When the GC saw that my Insurance was compensating me for "actual" replacment valueThey increased their bill to match Insurance paperwork even though they didn't perform the work described.
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Jun 8, 2020
Assuming all of that is true, then the GC cannot bill for work not performed. The fact that the insurance paid a claim doesn't affect what they are entitled to under the contract. Depending on what kind of insurance it was and what the insurance paid for it might even be evidence of damages from the GC's breach.
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