Homeowner is demanding refund after we poured a 12 x 16 slab. Sub contractor that poured the slab did a poor job and as the contractor I was going over beat way possible to handle situation but before I could do anything homeowner said they are cancelling the job and demanding a refund of entire amount they have paid. There is also more work they contracted me to do as well all on signed contract. What is my best way to handle situation. They are making threats of police and criminal charges if I don't return all monies. What is best way to handle situation.
Hello!
Let's start with the low hanging fruit. There will be no police or criminal charges. The cops are going to come out and say "it's civil" and the cops are going to leave.
As far as the refund goes, it is possible for you to be sued for breach of implied warranty of good and workmanlike conduct for the poor performance of the concrete subcontractor. And you can turn around and sue the concrete subcontractor as a Responsible Third Party but we all know they probably do not have much money. However, before they sue you, they have to give you all the required notices and opportunities under Chapter 27 of the Texas Property Code and there may be some other code sections with required notices depending on how they choose to sue.
They can cancel the project but whether they get a full refund will depend mostly on whether or not you can fix the poor work done by the subcontractor. If you can fix it, try to do so.
At this point, you are trying to minimize fallout and exit a problem project for as little money out of pocket as possible.
E. Aaron Cartwright III
214.799.0776
Aaron@EACLawyer.com