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tiredmama_gw

GC draw problems. Think we are being taken for a ride.

TiredMama
10 years ago

Multiple issues with our builder. One, excavation came in $10,000 under budget. This is suspicious because the other bids we got had accurate excavation bids. We took this to mean our contractor was more honest however he just submitted all the paperwork to draw the full amount of the allowance and says he will pay us this $10,000 after we close and square up. Obviously this amounts to an interest free and uninsured loan. There are numerous other under budget items so the total is $15k that he's trying to draw on of work that will NEVER be done. He is stating our home is on hold until we pay this and don't worry because we will get it back in a few months.

Problem 2) Draw #1 which includes everything up to roofing (electrical rough in, drywall, etc haven't been started yet) is 50% of the total house cost. This seems excessive or no? We are set up to have him take 4 draws but I certainly wasn't expecting him to take 50% the first draw including 50% of the GC fee which is substantial. This builder is part of a company that builds about 70 houses per year, all in the 400,000 and up range. We've talked to people who have been happy with them but they had to have been blind because we've been taken for such a ride already and they lie nonstop.

Please help! Thank you.

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