Legal Question in Construction Law in Virginia

Construction Fraud?

My wife and I entered into a very loose contract last October with a ''Custom Builder'' for an addition and remodeling job on our house for $130,000. The job was promised to be finished March 1, now May 26. He has lied about several big ticket items he said we would get but didn't. The job will not pass framing inspection as he undersized the main structural support - the addition is under roof now, no drywall, no insulation. He approached my wife while I was out of town stating ''I talked to your husband, we will fix the beam on Friday, we need $20K more now''. Luckily I had predicted this and had warned her not to pay anymore. The contract states we hold back 10% for final inspection / punch list. Friday and Monday came and went - nothing fixed. We have paid 80% of the contract and to my estimation and some other builder friends, the job is 50-60% complete. He threated me with ''Give us $20K or I walk''. So he left and took anything not nailed down, including partially installed plumbing fixtures. I have received estimates on what it will take to finish ($72K) and what has been done ($55K). I sent a certified letter demanding refund. He claims the amount I paid is what is done, the job was underbid.Is this fraud?


Asked on 5/26/08, 11:47 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Construction Fraud?

Fraud in civil matters generally requires proof

by clear and convincing evidence which I don't see happening in the scenario described.

There may, however, be breach of contract issues which, unfortunately, may also be problematical to establish due to the nature of the "very loose contract" which apparently was utilized for the terms of the agreement.

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Answered on 5/27/08, 7:50 am


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