How to Recognize a Bad Contractor
There are definitely signs that you may be dealing with a bad contractor. The most common signs that indicate your contractor may be a bad contractor include the following:
- Missed Deadlines: If your contractor is consistently missing deadlines without a valid reason or without notifying you, it is a bad sign. Examples of a missed deadline will include the contractor promising to complete the job by a certain time and failing to do so, frequently missing appointments without advanced notice, or failing to deliver promised items on time. Missing in what is ultimately a very important job deadline to the client can just be a very bad sign.
- Poor Communication: If the contractor cannot communicate well with you , you may be dealing with a bad contractor. Some examples include when the contractor does not return your calls, does not respond to emails, is often too busy to meet with you, or does not provide good answers when asked questions about the project at hand.
- Poor Workmanship: If the contractor fails to do quality work, you may be dealing with a bad contractor. Examples include when the contractor provides you with shoddy results that fail to meet the agreed upon quality standards, if the work is sloppy, unfinished or exceeds the budget and not agreed upon in advance, if corners are cut, or inferior materials are used.
If you can identify that you are dealing with a bad contractor, it may be time to move on.
Legal Rights Against Bad Contractors
In most western democracies, law provides a host of rights to consumers, including homeowners who hire contractors. The law also provides remedies when these rights are not met, ranging from financial penalties and damages to injunctions that prevent a bad act from continuing to wrongful termination of a service or contract. The most important piece of legislation when it comes to consumer rights is contract law. When you hire any contractor, they are expected to live up to their duty of care and complete the job in a timely manner, at the level of quality and compliance with local laws and building regulations that one would expect. When a contractor fails to meet these expectations, they may be acting in breach of contract.
Should a contractor be in breach of contract, there are a number of ways you may recover losses. Should it be cost effective to do so, you could sue your contractor for the value of your loss. If for example, your roof was not insulated sufficiently and thus required replacement, you may sue your contractor for the cost of replacing that roof. Alternatively, you may not need to sue, but still have your losses covered. Many contracts stipulate that you have the right to hire another contractor to complete unfinished work at the first contractor’s expense, meaning they may well be liable for paying your second roofer’s bill.
There are a number of other consumer rights that are available under consumer protection law. The key one to note here is the Consumer Rights Act 2015, which governs service contracts and states that they must be completed with "reasonable care and skill" and within a reasonable amount of time. Because building work is never "finished," the latter should be fairly easy to prove – simply use the same standard as for the former. If for example, you hired a builder to complete your roof but he fitted your tiles incorrectly and failed to seal the flashing, this is a breach of contract and a breach of the Consumer Rights Act. The claim you then make will be for a level of damages that puts you back in the position you would have been in, had the contract been completed to a reasonable standard. Primarily, you won’t be suing for the value of the work already completed, but for the costs of fixing the shoddy work, such as hiring a new builder to correctly install the roof and correctly attach the plumbing and electrics.
If going through your local Small Claims Court isn’t your thing, the Office of Fair Trading (OFT) may well be able to help. The OFT tackles rogue tradespeople – be they builders, painters and decorators, tilers or any other tradesmen – who deliberately deceive and defraud their customers. They have vast resources and can take away licence and registration from fraudsters, meaning they may be a better option for you than the Small Claims Court.
What to Do Before Hiring a Lawyer
Before you go and hire a lawyer, there are steps that you need to take. First, and foremost, you need to document everything in writing. This goes back to the "understanding" of what was going to be done and when. While you may have an understanding orally with your contractor, that is not worth the paper it is written on for lawyers.
I always tell clients to send correspondence directly to the contractor as well as the contractor’s insurance company informing them of the claim. The correspondence should be labelled "demand" and should outline the reason for the demand. If the demand does not get resolved, you are usually forced to move onto further steps. Also, any proof of loss directly related to the work should be sent with this demand.
Next, take pictures before, during and after the work is done. You are going to want to show how bad things were before the contractor came in, and then show how they got destroyed. Take videos of the progress and if your contractor is using a "sub", make sure he doesn’t tear the roof off before he puts the new roof on.
Finally, be patient, and don’t act irrationally until you’ve had a chance to discuss your case with a lawyer. Bad contractors are a dime a dozen, and with the economy in the way it is right now, if you have a claim, it might be better to ride it out and wait to see if the contractor gets better with time.
When to Consult with a Lawyer
Scenario 1: It becomes apparent that the cost estimate provided by the contractor was not an accurate representation of the actual cost of the work in circumstances where there are some components that are higher than reasonable levels (e.g.: an additional 15% for unforeseeable expenses/concealed conditions).
Scenario 2: It becomes apparent that the contract does not adequately address the work performed by the contractor and/or payment due to the contractor.
Scenario 3: It becomes apparent that the contractor purposefully altered the contract with either the intent or purpose to cause harm to the client.
Even more troublesome situations arise on construction projects where the contractor has the ability to mobilize and clear out construction deliveries and materials causing a major delay to the project. These situations are usually accompanied by significant delays and additional payments to retain new contractors to finish the project.
In almost all circumstances, if the contract is not complied with the owner usually finds it necessary to hire an attorney to pursue a claim against the contractor. The forum of the claim can either be through arbitration or the courts.
Finding the Right Lawyer
When it comes to selecting legal representation for a construction-related dispute, one key to building a strong case is to ensure that your attorney is capable of firmly representing your interests. Below are some tips on how to choose the right lawyer for your needs.
Qualifications
While no particular education is required to become a lawyer, all licensed attorneys must complete a minimum education requirement set by their state bar association and pass the state’s bar exam. To find out whether your potential attorney meets these requirements, check his or her website for a bio and get in touch to ask about licensing and certification.
Experience
The more experience an attorney has in arguing the types of cases you’ll be involved in, the more likely you can expect to win your case. Look for a lawyer who has significant experience with a range of legal issues relating to construction disputes, like mechanic liens, breach of contract, and bid disputes. Ask potential lawyers whether they’ve worked with clients like you and how many previous cases they’ve handled.
Client Reviews
When searching for the right lawyer to represent you in a construction-related case, it can be tremendously helpful to ask both for references to previous clients and to seek out reviews online. If possible, attempt to talk to previous clients about their experiences with a lawyer. Online reviews can be found through a number of different websites, including Yelp, the Better Business Bureau, and many more. As with experience, the more cases a lawyer has argued and the more satisfied his or her clients have been , the more confident you can feel about the outcome.
Lawyer Fees
To keep yourself from going over budget or losing money on a mediocre result, thoroughly review all financial information provided by your potential lawyer before making your decision. Most law firms charge fees in four main ways: a flat rate, a retainer, an hourly rate, or a contingency fee. For a flat rate, a lawyer charges a set amount per case. A retainer is a "down payment" for legal services. With an hourly rate, you’ll pay your lawyer based on how long it takes him or her to complete the required work. With a contingency fee, a lawyer will get a percentage of any damages awarded after the case toward which he or she has helped you get an appropriate settlement.
Free Consultation
Look for a lawyer who offers a free consultation to help walk you through the specifics of your case and answer any questions you may have about proceeding with your dispute. An honest, up-front assessment of your chances for success can help you to select the best lawyer for your situation.
Questions to Ask a Potential Lawyer
In addition to the information mentioned above, consider asking a potential lawyer the following questions:
By answering the questions in the above sections and carefully considering your options, you can greatly increase your chances of successfully recovering damages from a dishonest contractor. While the process of selecting a lawyer can be frustrating and confusing, asking the right questions and thoroughly checking for qualifications can help you to find the right legal representation for your needs.
Results of Hiring a Lawyer and Legal Remedies
For those who choose to pursue legal action, remedies may include money damages designed to put the homeowner in the position he/she would have been had the contractor performed well or even any unpaid amounts which are due under the contract. Depending upon the case, termination of the contract and/or an order to replace a bad contractor with a good one may also be an option.
It is apparent that there are many potential outcomes. While the law is generally very favorable to paying homeowners, a homeowner should never expect a windfall from a breach of contract claim. Damages are based on contract principles and will be expected to fall within the damages which may have been reasonably contemplated by the parties at the time the contract was formed. Economic losses which are the result of an angry reaction by a homeowner, such as ripping out the work of a bad contractor prior to suit or publicly disparaging the contractor’s business, are not likely to be recoverable.
Even before a lawsuit is filed, as indicated above, homeowners should promptly and politely give written notice of the specific problems they believe exist. Homeowners should also allow contractors to correct their work when conditions permit. Given these parameters, it is usually a mistake to take matters into one’s own hand and rip out the work of a bad contractor. In most cases, if the work is done before the homeowner gives proper notice and an opportunity to fix it, the homeowner will be stuck with the work and unable to sue for damages relating to the ripped-out work. While homeowners are entitled to hire a new contractor to correct the work (assuming the time is reasonable given the circumstances) and charge the bad contractor for the costs of correcting the work, they should not remove the completed work of the bad contractor until they are sure the new contractor can start the job at a predetermined time.
While I have had many instances where justice has occurred for my clients, unreasonable people are unreasonable people and that same characteristic causes them to delay payments on a contract. It can lead them to dispute the evidence of non-performance, even when presented with hard facts in writing, photographs, video and witnesses.
In most cases, getting an offer to settle is cumbersome and can take many months in the context of a non-payment or non-performance case. Even when a bad contractor does offer to settle and pay off, the amount offered is typically much less than the homeowner’s demand. Finally, there will be some cases where after giving ample opportunity to correct the work, no response is forthcoming or the contractor refuses to fix things, including their punch list items. In those cases, an independent contractor will be hired to review the work to be performed, create a scope of work to complete the project and to determine the costs associated therewith. With dollar figures in hand, the real fight begins. In a perfect world, resolution is obtained but there is no guarantee.
Avoiding Future Problems with Contractors
Once you’ve identified the issues you’re having with contractors, it can be worthwhile to look for ways to prevent future issues. One of the best ways to do this is by hiring an established contractor that can provide you with many positive references. Does your contractor or remodeler have a website where you can see contact information for their clients? If not, consider getting a candid explanation on why they don’t, as it may raise a red flag. While it’s always good to obtain a written estimate and sign a written contract for your work, there are other ways you can protect yourself. In addition to getting estimates and proposals from multiple contractors, verify their insurance, liability limits, and worker’s compensation insurance. Make sure to get the necessary permits for the work you are doing, and don’t pay in full until the work is completed to your satisfaction.
Once you’ve hired a contractor, make sure to establish clear terms and expectations in the contract. By specifically stating payment schedules, the scope of the work, the timeframe for completion , and daily and weekly objectives that the contractor should be completing, this will create all the relevant information about the job in one place, and will be useful if issues arise. Including a schedule that states when you should be paying your contractor can also help you avoid paying for work that hasn’t been performed. This will also ensure the contractor isn’t overpaid relative to the work they’ve completed.
When starting a project with a contractor, you may also want to play an active role in the project management for your job. This doesn’t necessarily mean that you have to be on site every week or even every day, but frequent communication with the contractor can go a long way in clarifying expectations and making sure things are going according to plan. Asking the contractor questions about the project regularly, stopping by to inspect progress, confirming the contractor’s schedule, and obtaining regular updates can all help you keep abreast of what work is being done and when and can help eliminate potential issues before they crop up.