I often hear from homeowners who, in the midst of renovations, are fed up with their contractor, to the point where they want to kick the guy off the site.
Their situation is usually so bad by then, and their anger and frustration so overwhelming, that you can't imagine a civilized word passing between them.
My first question is, "How did you let it get this bad?" (I'm talking here about a breach of contract, not about homeowners being ripped off through fraudulent activity.)
Before you start yelling, check your contract — and read the fine print. Look for what lawyers call the "limitations of liability" imposed on the contractor: the timetable, types of materials he uses, pricing for extras.
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Then look at the situation you are in as objectively as you can, and ask, "Has the contractor actually violated any of the limitations?"
If so, ask yourself if it is a substantial violation. It is a big deal to kick your contractor off the job; you can't do that for a minor mistake such as painting a wall the wrong colour. The violation better be for something a lot bigger, like not complying with building or safety bylaws, being late on the agreed-upon schedule by a significant percentage of the original plan, or billing more than agreed for an extra without an acceptable explanation.
Don't be surprised if you discover that he hasn't broken the agreement. And even if it appears he has, don't be surprised if your case against him is not as black and white as you first thought.
Here's an example of what often happens: You discover the contract requires the contractor or his representative to be working on site at least three days a week and you haven't seen either of them for two weeks. "Got him," you think! But then you read the rest of the contract, which excuses him if there have been delays as a result of changes you made to the scope of work.
You did make changes didn't you? And he did say they would disrupt the schedule, right? Well whose fault is it then? Are you then justified in kicking him off the job?
But let's say you really have found something substantial. The contract will have something to say about how you are allowed to respond. Usually, contracts will require you to notify the contractor in writing of your objection and then give him time to make it right. You have to follow the instructions laid out in the contract before you can do anything drastic.
So send your notification, and do two other things: 1) Start a job log where you can record offences (you should have done this when the job was started, especially if you're dealing with a bunch of little violations over time, but it's never too late to start), and 2) Bring in another contractor or quantity surveyor as a third party who can make your case from an expert's point of view.
With this supporting information, you are set to give notice to the contractor. But don't expect it to be over. In fact, it's just beginning, and what you now have on your hands is, potentially, years of court hearings and lawyer's fees.
That brings me back to my first question: How did you let it get this bad?
Being in this situation is like the guy nailing plywood over his windows in the middle of a hurricane. There is always plenty of warning. What were you so busy doing that you didn't see the clouds on the horizon?
Remember, we are not talking about fraudulent activity. This involves two people starting a project with good intentions, in good faith and with a clear understanding of what is involved.
Or was it? Were your intentions good? Did you hire the guy with the lowest price knowing he wasn't going to get the necessary permits? Did you act in good faith? Were you already thinking you could beat the holdback out of him if you complained enough when the project was done? Did you completely understand what was involved, or did you just stop listening when he said there could be complications once he started digging, and just hope nothing bad would happen?
Don't find yourself trying to cover your windows in a hurricane. Look at the horizon and read the weather forecast.
Contract caveats
Before you sign
- Check the contractor's references.
- Know exactly what you want.
- Iron out every detail of cost, scheduling and design.
- Have a realistic budget.
- Do your homework so you understand the job almost as well as the contractor does.
After you sign
- Start a job log.
- Conduct regular meetings.
- Bring up concerns immediately.
- Never relax your expectations.
- Fulfill your part of the agreement.
- Don't make changes.
Mike Holmes is the host of Holmes on Homes on HGTV. E-mail Mike at mikeholmes@holmesonhomes.com or go to www.holmesonhomes.com.
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