Legal Question in Construction Law in Florida

General Contractor Self Dealing

We had a cost plus fee contract on job. The General Contractor initially refused to show evidence of some costs....but billed for unproven costs. In the end when we demanded evidence he claimed the difference is work he ''subcontracted'' to himself. Is he able to do this? We higly doubt the legitimacy of his claim and are concerned he is padding the bill to cover unpaid subs (one subcontractor he claims he paid $30k was actually paid nothing and his overcharges or self subcontracting conveniently ads up to $30k)... Thanks


Asked on 1/18/08, 12:10 am

1 Answer from Attorneys
Randall Gilbert Gilbert & Caddy P.A.

Re: General Contractor Self Dealing

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney�s individualized advice for you. By reading the �Response� to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

RESPONSE: I just finished a lawsuit about this exact issue yesterday. We filed an action for a equitable accounting against an interior designer whose contract was also cost + 30% but he could only produce 1/3 of the back up of what he was billing. Demand "in writing" that not only do you want to see the invoices but that you also want to see the cancelled checks showing what he paid.

I think you also may also have success by filing with the DBPR against the contractor's license for the following violations: 489.129(g) "Committing mismanagement or misconduct in the practice of contracting that causes financial harm to a customer." and 489.129(L) "Committing fraud or deceit in the practice of contracting" and 489.129(m) "Committing incompetency or misconduct in the practice of contracting." Try to see if hte DBPR can help you, but definitely send out that letter asap and by certified mail return receipt requested.

Good luck,

Randall Gilbert

www.theconstructionlawyers.com

Read more
Answered on 1/18/08, 7:22 am


Related Questions & Answers

More Construction Law questions and answers in Florida