Legal Question in Construction Law in California

Help please,

I hired an advertised, with business office (bbb approved A rating) General contractor. I honored his full bid (paid over 3 months back in Jan 2010) but he has not finished and has dragged out this addition/remodel since. The contractor's supplier called me today telling me of a past due payment. I would like for him to finish but I don't think he has the money....he explained months ago that another one of his clients didn't pay so he was short 20k. I want to contact a lawyer (Northern CA) to help me with this....Talking casually to one of his former workers...he pays under the table, no workmans comp and now worry that his "honest" handshake and "We don't need a written contract" is haunting me. There are several parts of the remodel phase that pose serious safety concerns (open pits, foundation footings, etc) He has an active license with the CSLB and it looks like is bonded 12500. Anyi advice?


Asked on 6/24/11, 5:28 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

If you were 94954 instead of 95954, perhaps I could help, but actually I'm not too sure a lawyer is going to be of much assistance at this point. Your best bet may be to stay in close touch with the contractor, ask what's wrong, offer to help, be his buddy, etc. in the hope you get better treatment from what may be a dying enterprise. If he'll be bankrupt in eight weeks, see if you can con him into doing your job in the next six. Probably needless to say, a BBB rating is subject to change, and engaging a contractor and advancing money without a written contract doesn't help matters.

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Answered on 6/24/11, 8:48 pm

In your short description of your situation I immediately spot at least a half dozen serious illegal things your contractor has done and is doing. Licensed contractors are required to have written contracts. It is seriously illegal to require a client to pay more than 10% or $1,000, whichever is less, up front. It is seriously illegal to progress bill a client for more than the actual value of the work completed and materials supplied. It is seriously illegal to expose a client to mechanics liens for failure to pay suppliers. It goes on and on. If this was just a contractor fallen on hard times and on the way to bankruptcy, I would agree with Mr. Whipple to string him along and get what you can out of him. With a con artist like this one, though, you need to file complaints with the CSLB and make a claim on his bond NOW before someone else does. You also need to fire him and get someone else to finish your work, and sue the original guy for what it costs you. Unfortunately, given your location you're going to have a tough time finding an experienced construction attorney who can handle your case. The last time I took a case up your way, it cost considerably more for me to handle the case than my client got. Fortunately I was paid by an insurance carrier in that situation, so my client was made whole.

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Answered on 6/26/11, 1:26 pm


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