THE "BAD ONE" FOUND US AND SO WE LEARNED THE HARD WAY. . .
THESE ARE SOME OF THE THINGS WE NEVER KNEW COULD HAPPEN......DID YOU KNOW A DISHONEST CONTRACTOR CAN....
***MAKE CHANGES TO YOUR ARCHITECT'S PLANS, RENDERING YOUR HOME STRUCTURALLY UNSOUND, WITHOUT PENALTY FROM THE ATTORNEY GENERAL!
***HOLD BACK ON COURT ORDERED DISCOVERY UNTIL THE STATUTE OF LIMITATIONS ON FRAUD HAS EXPIRED --WITHOUT PENALTY FROM THE COURT!
***COERCE EMPLOYEES TO CALL IN FALSE COMPLAINTS TO THE SHERIFF'S OFFICE AGAINST YOU--WITHOUT PENALTY! (WHICH THE EMPLOYEES LATER RECANT)
***ORDER MATERIALS IN YOUR NAME AND SELL THEM TO OTHERS!
***USE THE CONTRACT TRUST FUNDS TO TAKE SIX PEOPLE TO THE CARRIBEAN, WHILE TELLING HIS SUPPLIERS YOU DID NOT PAY HIM!
***COMMINGLE FUNDS HELD IN TRUST (FOR YOU) WITH CORPORATE AND PERSONAL FUNDS! WITHOUT PENALTY FROM THE JUSTICE SYSTEM!
***RUIN YOUR CREDIT SO YOU CANNOT BORROW TO FIX THE HOME HE BOTCHED!
***COST YOU MORE THAN $50,000 IN LEGAL EXPENSES!
***PROTECT HIMSELF BY DELIBERATELY DISREGARDING THE LAWS GOVERNING CONTENT OF CONTRACTS! (LIEN WARNINGS, ETC) WITHOUT PENALTY FROM THE ATTORNEY GENERAL!
***RENOVATE HIS CORPORATE RENTAL PROPERTIES WITH YOUR TRUST FUNDS!
***ILLEGALLY INCINERATE HIGHLY TOXIC BUILDING WASTE MATERIALS ON YOUR PROPERTY!
***AVOID THE HOMEBUILDER IMPLIED WARRANTY LAWS BY CLAIMING YOUR CUSTOM HOME IS A HOME IMPROVEMENT
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I have been a builder in New York State for 22 years and I hear these stories far too often. New York state does not have a licensing system for contractors(NY City does),all you need to do to call yourself a contractor here is file a $25 DBA at the courthouse and get $18 worth of business cards at OfficeMax.
With sympathy to the Biggs this happens nearly always to inexperienced home owners who accept these ridiculously low bids for work and/or attempt to be the General Contractor on their own project. There is a reason that an Architect charges 5-10% for Construction Management and there is a reason that an established reputable contractor would not have touched that project for less than $120,000.
Here is my tips for selecting and working with a builder in NY state:
Talk to your lawyer first, have him read the proposals and the contracts, have him run background checks on the builders. He will be looking for liens,judgements,criminal history etc. Shouldn't cost more than $400 for reviewing three bids.
Look at the last house he built and talk to the owner. If he can't provide one or gives you some excuse,walk away.
If he can start in under 90 days be at least a little suspicious. Most reputable builders here are booked 6 months if not a year or more in advance.
Deposits: Most will want a small deposit(typically $1000 in my region)to bind you to their contract and put you on their schedule. In NY State you can cancel any construction or remodeling contract for any reason within 72 hours of signing.
Draws ( payments to contractor) must be spelled out in the contract, agreed upon and adhered to. If you are financing the work through a lender they will almost always dictate and/or negotiate the schedule with the builder. Google " Construction loan draw schedule" for examples
Change orders made by you or the contractor must be in writing. Make certain that is written into your contract! Do not pay for changes you did not approve. Do not expect him to make requested or required changes for free.
Hold back payment if any stage of construction fails inspection.
Lien releases! Very important! Do not pay the builder or a subcontractor their full draw or final payment unless they provide proof that material suppliers and all subcontractors have been paid in full.
This message has been edited. Last edited by: Rick12309,
