Problem with contractor Leann Klos asked 9 months ago
Problem with contractor

I am having an issue with the contractor who was sent out by insurance to repair my property after a flood from kitchen! He had me pick out a floor which he said was in budget for like 2 weeks. Then suddenly he asked me to pay an extra $2,000 on top of my $1000 deductible because the floor is out of budget and now denies he ever told me this after I was forced to sign a contract with him. Now he states that if I want to nickel and dime the contract then to pay him for all work completed so far and also the overhead and profit from the entire job, when all they have done so far is put walls in paint and installed kitchen cabinets! My question is can I pay him for work completed only including overhead and profit on only the things they finished? Because if I need to pay overhead and profit on the things they did not do I won’t have enough left to finish my repairs! Can he put a lien on my house and take basically $10k of my repair money to pay O&P on the complete job?

1 Answers
Jaclyn Conover Jaclyn Conover Expert answered 9 months ago

It is important to review the terms of the contract you signed with the contractor. The contract should outline the scope of work, the agreed-upon budget, and any provisions for additional costs or changes. As this was your insurance carrier’s preferred vendor, you should notify your adjuster immediately of the problems you are having with the contractor and see if they can do anything to facilitate a resolution.

If the contractor is now requesting additional payment for work that was previously included in the agreed-upon budget, and if there is no provision in the contract for such changes, you may have grounds to dispute the request. However, it will ultimately depend on the specific terms and conditions outlined in your contract.

Regarding the issue of paying overhead and profit (O&P) on unfinished work, this is typically a negotiable matter. If you are unsatisfied with the contractor’s performance and wish to terminate the agreement, you may be able to negotiate a settlement for the completed work only, including the overhead and profit specifically related to those completed tasks.

Regarding the potential for a lien on your property, this can vary depending on your jurisdiction. Contractors may have the right to file a mechanic’s lien if they are not paid for work that they have completed.

Remember, it’s important to document all communication, keep copies of the contract and any relevant evidence, and consider seeking legal advice to protect your rights and ensure the best course of action in your specific circumstances.