Contractor Question

[Waist Deep]

Looking for an opinion.
Guy building his house owes us about 70K yet and says he can't afford it.
Offered us 55K.
We've got everything in writing and the house is just getting started. We've slapped a lien on it but now he wants to bond around it.
The bank says they will hold up his draws until it's settled.
Also found he is building with an expired license on three jobs, so I turned that into the board.
We could use the $, but I hate to just give in because of that.
Any Opinions?

[phebus]

I would seek legal advice, that is a lot of money.

[Waist Deep]

I have refrained from the legal deal since I didn't want to pay to retain an attorney.
Once that's done, you can kiss 5K away simply for the retainer.

[1 Baja Guy]

I have refrained from the legal deal since I didn't want to pay to retain an attorney.
Once that's done, you can kiss 5K away simply for the retainer.
Yes.. I think you made a good choice by not hiring a attorney they are bigger thiefs than the guy your doing work for.:D

[OutCole'd]

Is a compromise possible? Meet in the middle & run with what you can get?

[Waist Deep]

The only compromise is 57K instead of the 70K. Sucks to take a hit when you have a contract.
This dick has his own in house attorney.

[Deano]

I would take the 55K and offer him some type of payment plan while still having the lien in place.
I have a number to a really good construction attorney that will seek his fees, along with yours. Wouldn't hurt to make the call. Let me know if you want his number

[tcook33]

I would take the 57 and walk. By the time it's all said and done, you will have paid out more than 13K in legal fees and lost time. And you probably wont get it back.....

[Waist Deep]

PM Sent Deano

[Mandelon]

He's lying. Go set fire to his building. :mad:

[Waist Deep]

So Mandelon, you say stick it to him.

[OutCole'd]

So Mandelon, you say stick it to him.
That's what Mandy does to people who owe him money. He may not get paid, but has a good time.

[Mandelon]

It sounds like he is full of crap. The bank is making the disbursements arent' they? How can there not be the money??? He is relying on his free lawyer deal to stick it to you. I hate dirtbags like that. I'd flush 20 bags of rapid drying concrete down his main waste lines.....but after you get a check.
Don't let them get that far ahead of you in the future. Bill more often and structure the payment schedule more tightly.
What does the bank say? I am not sure what you did there as far as your trade...

[YeLLowBoaT]

A lein will stop him from getting any more permits and inspections... role by every week and take a picture... that way you can see if hes doing anything to the house... If he is, go pay the local building inspector a vist, they just love to see stuff getting done with out permits. ;)
Do not set up a payment plan unless its thru a lawyer. Don't release the lien unitl he pays you ever penny.
I'm wondering... why is his lic out? ( the borad has a web site that well tell you if its in good stand, if not why its not)
What I am seeing is there is 2 reasons why he is not paying.
1 he does not have the money.
2 he does not want to pay.
if its number 2 Don't rest until this guy pays you ever cent your owed.
You may also want to let BOE, FTB and the IRS know... normally if they are lieing about having money they are lieing on thier taxs.

[Waist Deep]

Our first bill was 8K the second was the balance, so we were in on the 2nd one.
The story is this :
The guy is building a 7 mil house
He budgeted 4 mil, therefore that is what the loan is. The bank has dispersed what was alotted for our trade and there is none left.
We posted our lien and Chase states they will hold funds on this draw, but now the guy wants to bond around our lien, which means we now have to pay for a bonded stop notice. There's $1,500
As I said, the guy owns a jazz club in L.B. along with a few other clubs and is building this on an expired license with the CSLB. I called the board and they said they'll shut him down, but will this really help me get paid?

[YeLLowBoaT]

no it won't help you get paid.
its time to say fook it and get a lawyer, if he has the cash I bet you get your money in 3 days after papers are filed.
Can I ask what his name and /or lic number he gave you is?

[YeLLowBoaT]

you can check on his lic here( topless posted this on HB... I always just called)
http://www2.cslb.ca.gov/CSLB_LIBRARY/License+Request.asp

[Waist Deep]

Sure, It's Pacific Design & Construction ( 850023). Guy says he can bond around my bonded stop notice, but I don't think so.

[YeLLowBoaT]

well it says his renewal is being proccessed... its not uncom for this to take a long time....
now does he have employees? since it says hes has none so no workmens comp is needed... I would find out if he has any...if he does, make a call to osha CSCLB, FTB, IRS. or he can pay you every thing he ows you...
he also has a very small bond and only 12.5k. mines bigger then that and I'm a small fry.

[Waist Deep]

It's being processed , but the house has been going since October and the LB club since last summer.
The board is ready to issue complaint #s since it is still expired.
No employees, just office personell.

[Mandelon]

Get an old van and park it out front, paint your opinion of the guy on the side of the van. Pay a scary looking guy to hang out in it all day and hand out fliers describing what was done. No libel.....no opinions, just the facts.
Once the other trades find out he's not paying....just see who wants to work for him.
I have liens on two houses now, fokking deadbeats just kill me. I'm only owed $16,000 but its still a lot when you aren't gettting it.

[Mandelon]

Our first bill was 8K the second was the balance, so we were in on the 2nd one.
The story is this :
The guy is building a 7 mil house
He budgeted 4 mil, therefore that is what the loan is. The bank has dispersed what was alotted for our trade and there is none left.
We posted our lien and Chase states they will hold funds on this draw, but now the guy wants to bond around our lien, which means we now have to pay for a bonded stop notice. There's $1,500
As I said, the guy owns a jazz club in L.B. along with a few other clubs and is building this on an expired license with the CSLB. I called the board and they said they'll shut him down, but will this really help me get paid?
He's got the other $3,000,000? But can't pay you.......:confused: They can switch the money around from category to category with a simple form. Talk to the voucher lady at the bank. Its easy. Don't believe that the allotment for your trade is gone, get it from the flooring budget....

[OCMerrill]

I personally don't think he can bond around your stop notice. What part of the work did you sub in? Just curious makes no difference though.
You need to perfect the lien so if the two of you can't come to terms then you need to lawyer up. You will be including these fees anyway.
If your work was signed off by the inspector then your golden.
The Judge will ask for the contract, your license, was the work completed, the date, and the inspection status. Case Over. Getting the money still might be tough though and could cost you even more money.
Your is a difficult situation. Cement shoes would have taken care of this years ago.
His license is just two years old or so. I renewed mine last August. Took about 3 weeks for my paperwork and card to show up. I have been trying to get my workers comp status changed for a while to reflect required. It still doesn't show correctly.
Let us know how this turns out. I don't have any real experience here other that going to court as a witness on two separate occasions. This was to back up another contractor.

[Stingray69]

THEN flush 20 bags of rapid drying concrete down his main waste lines.....but after you get a check, and it clears.

[Mandelon]

THEN flush 20 bags of rapid drying concrete down his main waste lines.....but after you get a check, and it clears.
:D :D :D :D

[Big Warlock]

I would get an attorney. Specializes in collections with a construction background.
Off hand I would take the money he is offering. Then I would go after his bond on his license. Then you put him out of business and get his bond money. :)
Good luck. Sucks to get hit with that kind of crap!

[speedneeder]

Is he offering the 55k in return for a lien release? If not, take the 55k and lien the project for the balance.
I would look at from a business perspective. But not knowing your annual revenue, backlog, overhead and other information its hard to answer.
How much is not having any of it going to impact you? Are you willing to wait several months or years to get the full amount if you get it? How much are you going to pay in financing to cover your costs by waiting for your money? How much work opportunity are you going to put off until you collect and do you have the ability to pay your overhead/vendors? What was your margin on the job? We settle regularly and take many things into conisderation before settling on an amount.

[C-2]

How old is your lien and you realize you have to file suit to perfect it?
I doubt the guy can wait 90 days for your lien to expire, so even if you don't plan on going legal - he might to clear title, especially if they can't bond around it?
An in-house attorney is never a good sign.
Where is DaddyMack - he's probably the most knowledgeable?

[Faceaz]

Generally a bonded stop notice should do the trick. The bank should not be able to fud for any other trades, without first addressing your claim. If that does not work, you might want to review the owner's loan agreement with the bank. If there's a clause stating the bank can complete the work, should the owner fall through (oblagee), you may have the right to go after the bank directly. We've done this once in the past, banks generally don't like to be involved in a suit & will pay out much quicker than dealing with the owner. ~ Good luck.

[Waist Deep]

You're right with the in-house attorney thing. At this point he's ponied up
59K in greenbacks which is a 10K hit.
So a retainer for an attorney is 5K
The Stop Notice Bond is $1,500.00
I know I can win it, but is it just ego, just like him trying to cut the amount due?
Yeah, then there's the wait for the money with how the legal system works. It's hard to trust him when the attorney asks the Supt. if he can find something wrong with my work so they don't have to pay it. That was just today.
You know, if you want to find something wrong, you will!

[YeLLowBoaT]

THEN flush 20 bags of rapid drying concrete down his main waste lines.....but after you get a check, and it clears.
no, no, no... you don't mess with the drain lines. You run a water line from some where underneath the foundation( right underneath a suport pilar workes great) and for get to put a cap on it.

[MUDXPRT]

I feel your pain but just a little more. We did a job and now there are issues between the builder and the owner of the property, the builder has filed lien and is getting ready to file lawsuit. We filed our lien and I am not waiting 90 days, we are getting ready to file suit. For you that live in Corona this is the 3 buildings across the street from Sam's Club and Home Depot at Ontario & California. It is where Longs Drugs and Rubio's are located. They owe me $347,000.00. Talk about hurting cash flow!!

[Waist Deep]

You got to be asking yourself as well, why me? Does not matter if you do it right, you still get a haircut.
I always thought commercial was better, but you got me thinking again.
Good Luck and hang in there.

[Deano]

I feel your pain but just a little more. We did a job and now there are issues between the builder and the owner of the property, the builder has filed lien and is getting ready to file lawsuit. We filed our lien and I am not waiting 90 days, we are getting ready to file suit. For you that live in Corona this is the 3 buildings across the street from Sam's Club and Home Depot at Ontario & California. It is where Longs Drugs and Rubio's are located. They owe me $347,000.00. Talk about hurting cash flow!!
I watched your guys forming for a little while one day....good crew

[3 daytona`s]

Yes.. I think you made a good choice by not hiring a attorney they are bigger thiefs than the guy your doing work for.:D
GOOD ADVISE:mad:

[WYRD]

Was a prelim filed? If so just file a stop notice:confused:

[Waist Deep]

Update!
It's been offered 30K to the biz
30K in greenbacks
So I take a 10K haircut, for what, I don't know. But I can get paid in 2 days.

[YeLLowBoaT]

sounds like he has the cash to me... Give him a choice... all by friday or face legal action. I've seen way to many good contractors get skrewed by something like this. Not just the money...it always seems to be that it comes back and bites the guy in the ass some how.

[Waist Deep]

Yellowboat, is there a chance you own a Daytona?

[YeLLowBoaT]

no, but I am completly re rig a boat...

[Waist Deep]

OK, is it a Daytona, only because I got a funny feeling I met you at a truck stop/gas station off the 5 on the way to Naci.

[YeLLowBoaT]

nope... I live just out side of sacramento.

[riverroyal]

for awhile???the 70k,if so get a lawyer,go after more than 70k

[Waist Deep]

The living w/o the money is the big issue as this is not the only job where the $ has been tied up because of this type of crap.
At these times, I think of a change of profession is due, but I like going to the river on Thursdays!

[riverroyal]

and go out-of-your-way to ruin future business for the guy.