Legal Question in Construction Law in New Jersey

Re: Contractor from hell

Don't send good money after bad. The purpose of a scheduled payment plan is to ensure that the contractor does the work required properly. If the work is not done, don't make the payment.

You have the classic circumstance of anticipatory breach of contract. You can request of the contractor what is known of "further assurances." Essentially, you should write to the contractor and tell him that, due to lack of progress on the job, you have doubts that he is ready, willing, and able to complete the work. Demand that he show progress by a certain date at the risk of losing the work altogether. You should state all of the facts in your letter. Remember that the letter is as much for a jury that does not know the facts as it is for him. If he does not respond, you are within your rights to terminate the contract and to hire someone else to complete the work.

If you do hire someone else, make sure that you hire them to do exactly what the original contractor was engaged to do. If, in the meantime, you have thought of anything additional that you want done, do that under a separate contract. The idea is to be able to easily show exactly what completing the work cost you. In a possible suit against your current contractor, you are entitled to recover any difference between what you actually paid (in total) and what you contracted to pay.

Keep in mind that a court will require you to show that you have given the contractor a fair chance to perform. You are not obligated to go beyond this and the purpose of progress payments is to ensure performance.

If you have any further questions, feel free to give me a call.

Re: Contractor from hell

Mr. Corbet gave you good advice, but I want to add the following.

You did not state where you are, and particulars like does the agreement state when the work is expected to start and finish? Does it have his company name, address and phone numbers? Under the NJ Consumer Fraud statute, this information is required, but often omitted in part.

Now, check to see if the contractor has proper permits for the work, then see if the contractor is required to register with your town and county as a contractor, then contact the BBB to see if he has any complaints, then check to see if he is incorporated (call the NJ Sec. of State's Office or go online).

Now when you talk to him (and ALWAYS send a follow-up letter memorializing your phone conversation!), you will be better prepared and know if he has any 'problems'. In any event, in your letter, you need to state you want him to coomplete the work, and that he has 'front loaded' his contract (he is paid ahead of the work and material costs & essentially he has YOUR money in his pocket instead of the other way around) so you are concerned about him returning to finish. Tell him you want his response (affirmation that he will complete) in writing, but he'll likely still only call you. Let him know you are reasonable, but you will become a problem IF he does not timely return and complete the work contracted for.

Don't give him another nickle until heperforms as required. If he starts giving you a hard time, it may not hurt & in fact help if you let him know you spoke to an attorney because he has you concerned about his intentions.

Next time, DON'T do this without first speaking with an attorney who knows construction - no one wants to spend the money, but it is worth it most of the time!

Lets hope he had every intention to properly complete the work properly and timely. Good luck.

Kevin J. Begley