My house was limited to replace wood columns with concrete columns. The GC hired a sub-contractor for carpentry work under the house. The sub-contractor did a terrible job and did not complete the job. The GC hired a 2nd sub-contractor who did very good work, but they did not complete the punch list. Sub-contractor #1 threw all scrap concrete in the yard, leaving me, the homeowner to remove the concrete tossed all over the yard, and haul it away. They covered my lawn furniture in concrete, they washed concrete equipment in my driveway, leaving a terrible mess that took 4 weekends to clean=up. They did not retain light fixtures installed under the house, electrical wires were cut that did not need cutting, the list goes on. The project was to take 3-4 weeks, but it took them 7 months. The home is used as a short term rental, I lost ~ $5k-$10k in income. I had to hire a 3rd contractor to complete the punch list, which totaled $5k. THe GC is asking me to pay $5k to the 2nd sub-contractor that worked on some of the punch list items, and who actually did a very good job. Do I owe this additional $5k to the GC? Prior to answering,can you please let me know if there is a fee for a lawyer to answer this question?
Hello,
No fee required for an answer.
This is a sticky question to answer. Basically, you want to divide each contractor's work on its own and ask if they have been fully paid. Once that is done, you may assess your excess damages in a chargeback almost. Let's walk through it.
Contractor 1 - Performed work. Has he been paid for the work he completed?
Contractor 2 - Performed work. How much was he supposed to be paid? Was he paid this amount? If he performed work that has not been paid, he does have lien rights for the unpaid labor and materials.
Contractor 3 - Performed work. Has he been paid? It sounds to me like C3 was hired to finish work C2 should have done. Was the GC aware that C2 did not finish all of the punch list items?
Based on the limited facts you have presented, here's what you can do: If you were required to hire C3 to finish the list C2 should have completed, you may charge the GC back for this work. Basically, just show him the invoice from C3 and point out the items C2 should have completed and say you have already paid for those items as they should have been completed by C2 but you were forced to hire C3.
Where this will get sticky is with the facts you have not presented. We do not know if C2 was originally promised a certain amount. We do not know if the additional $5K was tacked on by the GC or if it was part of C2's original contract price. There's a whole lot we do not know about that part. In addition, if the GC feels like the work was completed but not paid for, they can file a lien which will force you to sue to remove it or pay it. You are going to want to handle that situation very carefully. Perhaps there is an agreement that you all can come to given the fact that you were forced to hire another contractor, lost several months worth of rental income, and C1 damaged your property.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com