He can't put a lein on your house without going to court. Prepare a counter-suit for him for all the things he left un-done. Get estimates by tradesmen to finish them....even if they were things you could do yourself. The problem you may have is the verbage of the contract should have stated "acts of God" and not "unforseen things" because there is way to much room for interpertation with that statement. Get a lawyer involved....you may need it.

In California, he can put a lien on the house, but cannot collect on it without filing suit and winning. Every state is different. If you didn't spell out "Act of God" in the contract, then you need legal help. You needed legal help to make up that contract, IMHO, and if a lawyer did it, then shame on him for such wording.

You don't mention what state you are in. I would research the lien law in your state and see what the requirements are.

"He said there is a section in the April bonus contract for unforeseen things that might happen out of his control."
What does the contract actually say? Wording is very important. Does it say "Act of God" or does it say "things outside GC's control". There is a big difference. Act of God means natural events (weather) that cannot be prevented by human intervention. "Things outside GC's control" is up for grabs re: what it means. What exactly does the contract say?

Has an attorney looked at the contract and the amendment? I assume it was negotiated between you and the builder? Was all this in writing? I'm not sure why you handed and extra $50k over the builder if the contract didn't require it.

Just so you know, all the subs and suppliers can put liens on the house as well.

As for the contract I am not sure what exactly it says since it's currently at DH's office. Our lawyer looked at it yesterday and so did our lender. Neither believe GC would win if he tried to lien but of course this is California.

The reason we paid 1/2 of GC's original mistake was we were getting very close to our C/O (we think that is the reason GC waited until that point to tell us of his mistake). Our lender advised us to work it out since finding a new GC at that point would be as costly and most likely halt construction for months and months. Plus he is a good contractor as far as the quality of his work (once completed that is). So with loan penalities it made sense to work with the guy for a compromise.

Then 2 months later (in April) the reason we "offered" the added incentive in the form of a bonus was b/c when GC had to pay for 1/2 of his mistake he lost a good chunk of what he'd have made on the house "IF" he'd been a better businessman. The bonus timeline was totally GC's date. It is the date he himself thought he'd be through. DH also thought it would motivate GC but as it was even during the bonus period there was seldom more than one of GC's crew here daily and many times no one at all. They were working on another house he was building that was even further behind on their completion date.

As far as subs putting a lien, for each phase completed GC took a draft. He WAS paid and should have paid the subs at that point. Our worry is did he? Or didn't he???

Does your contract state that you should get releases from each sub? If not, talk to your attorney. But if they haven't been paid, you'd probably know it by now.

"Our lawyer looked at it yesterday and so did our lender. Neither believe GC would win if he tried to lien but of course this is California."

Well, you can wear the white hat and be noble and fight the good fight for what is right and just, but it's going to cost you.

Our little battle was over $4600 that the GC claimed we owed because the job was more complicated than he expected and it was all 'consulting fees' to him, which he stuck onto our final bill unilaterally, and by us "defaulting" by not paying that, he came up with about $7K more in assorted bills that he said he "paid out of the goodness of his heart" (I kid you not.) So he sued us for less than $12K (and small claims is $7500 or less here in CA), which he then amended (working as his own attorney) to include $150K in fraud. (Did I already say, I kid you not? If not I will repeat it.) He even stated that he wanted to see us suffer.

We used an attorney. Who was brilliant, and used his paralegal for almost everything, and we were good and did not call him every other day, thingts that kept our bill down. This stretched out for 2 years before the court date, because the suing party had an idiot for an attorney and didn't know what proper paperwork to file. He even called for depositions, which our attorney said was the first time he had ever seen a layman do that. We "settled" for $1,500 in pre-trial conference with the judge, and had about $7,000 in attorney fees.

You decide how much right you are.

I think our GCs might be related. ;-)

Kats, I'm so very sorry to hear this. You must be both livid and sick to your stomach at the same time. He certainly doesn't sound like an *ethical* GC, trying to strongarm you into funds that he knows, or ought to know, he isn't entitled to.

I'm glad to hear that your lawyer and lender are involved at this early stage, and I truly wish you all the best as you work to resolve this nightmare.

This is the time to consult with a real estate attorney.

Actually, you want an attorney with construction experience.

I'm reading quickly, but it isn't clear when the GC last worked at your house. FWIW, there's also a limitation (90 days in GA) on how long a contractor/sub/supplier can wait to file a lien after last working at a site (or delivering supplies). But I think that'd just make it easier to deal with in court, rather than get you out of lawyer services.

The claim you paid part of sounds like it was strategically timed. I'd hope your contract states something to the effect that your GC's accepting any progress payment constitutes a release from any claims up to that point. I didn't during our remodel, but I'd be sure from now on to have a GC sign a lien release before getting any given payment.

We were sued by a GC who had abandoned our remodel about halfway through. Basically, it was attempted extortion. But you still end up spending thousands just getting to the point where the other side wants to walk away. And that's with, from our perspective, him contractually owing us the extra $40k+ it's taken to finish the job. That and I'm still fixing all the major mistakes el-hacko made along the way.

I wouldn't let fear of a lien scare you into coughing up more cash. The burden's really on him to prove that he's owed via a lawsuit. And, at least here, he could get spanked with punitive damages for slander of title in filing a bogus lien against you.

I'm not a lawyer- I just am related to too many and have spent too much time with others as a result of our own crappy experience.

The best thing to do would be prescient and not hire the hacks in the first place. Haven't quite figured out a way to do that yet. We thought ours (who was well recommended) was just stretching to do a bigger job than he had before, not that he was basically incompetent and financially insolvent. YMMV.

You may want to double check this in your state, but I do not believe the GC needs to win a lawsuit to put a lien on your home (at least in several midwest states that I know of). However, there are steps that need to be taken within a certain time frame for him to be able to attach a lien. In Michigan, Ohio and Indiana, for example, the GC or subs must first file a Notice of Commencement within 30 days of providing labor on the site. They then have a certain amount of time (usually 30 days) after they receive the Notice of Commencement to file a Notice of Furnishing which states what they furnished material or performed labor on the site. In order to file a lien, they must file forms within 90 days of their last labor on the site.

In our business (construction) we have attached liens many times over the years and never had to win a lawsuit to do so. In order for him to collect his money, however, he would have to either file suit and win or wait until you sell your home and collect on the lien from the proceeds of the sale.

Putting a lien on your home is actually not the end of the world. It just means that you wouldn't want to sell your home before you take this guy to court to get it removed and possibly countersue him for your trouble. I would get an attorney involved before you go any further.

Make sure you document every single thing while it's still fresh in your mind. This may take years to work its way through court and by then things will be forgotten.

I don't have anything to offer you but my sympathy, kats. ARGH!! Is this the same gc who didn't calculate your snow load correctly and caused all the problems and delays in your build? The same gc who showed up with a $100,000 bill for his own mistake? Who didn't completely finish all of the work he's supposed to do ?(scaffolding in the family room? You are a better woman than me!) Who is now threatening a lien and therefore a lawsuit against YOU?

Sorry, just had to make sure I had that right. That is outrageous. Completely outrageous.

Amy

It's interesting that these "miscalculations" always mean the client has to pay more. Never heard of anyone's builder saying they miscalculated and the client will get any money back, LOL! Good luck with the lien, I hope he can't convince the court he's entitled to it if he's not. I agree with the others who cautioned how much it costs to fight anything legally but it appears enough money is at stake here, plus a principle factor, that if it were me I'd fight it.

Here is a link that might be useful: Lien Laws by State

Thanks everyone for your support.

Is this the same gc who didn't calculate your snow load correctly and caused all the problems and delays in your build? The same gc who showed up with a $100,000 bill for his own mistake? Who didn't completely finish all of the work he's supposed to do ?(scaffolding in the family room?
Yep.... Amy, this is the same GC we've had all along. The snow load problem wasn't his mistake but the $100k was.

We know even with DH splitting the cost of GC's mistake with him that GC was still in the hole $50k. This bonus wasn't even something we had to do in the first place. By doing the bonus DH was simply trying to motivate and help GC. He did that because that's the kind of man DH is. One good thing, I did find out that GC has paid all subs to date. Which is a relief. I also found out that GC told DH the reason he needs this bonus money so badly is he's already spent it.

Several of you asked about the wording on the contract. It basically says the GC is free if "natural acts" or any "act out of the control of the contractor" happens. Our GC contends that the subs he hired delayed him and therefore, were "out of his control". However, I've spoken to three of those same subs. They've said they'd try to schedule or check on whether something was in they needed to finish their jobs and GC wouldn't return their calls. That when GC did schedule them, they'd show up to find GC hadn't really completed things. And many times they had to reschedule to allow GC time to finish whatever... Case in point, the plumber stopped by 2 days ago b/c he hadn't heard from the GC about some parts he needed to finish his work. He found that 2 of 5 things he needed GC had left here. GC actually went on vacation and never bothered to call the plumber that even some of the parts were here. Now at least I have 3 of my sinks working.

It's apparent GC is a man that doesn't know busness well and is trying to now get whatever he can.

"Several of you asked about the wording on the contract. It basically says the GC is free if "natural acts" or any "act out of the control of the contractor" happens."

Who drafted that language? That is horrible language. It should have exempted him for Acts of God only - maybe. The bonus was just that, a bonus. You didn't need to exempt anything.

Anyway, I don't know what you should do. He may be able to get a lien based on your state law, but you will most likely win when you challenge it. If you are done with the house and having a lien for a period of time won't hurt you then I'd just cut him off and see what happens. There are few things left to do on your house, you could get them done yourself. Or you could offer him some amount of money as "go away" money. Mabe $10k, but nowhere near the full bonus amount (which is I imagine is far less than the full bonus would have been).

I don't like giving in to bullies, so I'd probably risk the lien and not give him a dime. We faced this twice when we were building. But in our case we were the GCs and it was (former) subs threatening it. They both backed off after being sent "why you will lose" letters.

Or maybe you are well off enough that the aggravation of dealing with this (lien, lawyers, etc.) is more costly to you than the money is. In that case, maybe you pay him a higher amount.

DH figured it would be faster and cheaper to finish what he can himself or hire it out. Except like my island and a few other things. And GC was the one that came up with that contract. I think it was something he got online. He also came up with the timeline on the contract. As a contractor in charge of subs and the delays that can happen GC should have built in extra time for problems. I think this scam popped into his head as a way to get out of debt.

We don't plan on selling for 10 years or as long as good health continues. And we're like anyone else. Money counts. We're better off than some, way less than most. At $45k it's worth hiring a construction attorney and although we've never done it before, if we have to we'll countersue.

DH was going to give GC some extra money in the end but not now. GC played his cards with the $100k and he's trying to do it again. GC doesn't deserve what he didn't earn.
It's become a matter of principle.

Stick to your guns, kats. I'm with sue, I cannot tolerate a bully. I know that is easy for me to say when I don't have to go through the stress, but I would at the very least call his bluff. Please keep us posted!

Amy

kats,
I don't have anything really helpful to add, but I just wanted to say that I'm angry for you and your DH. It really sounds like you have been MORE than fair with this guy and that he sees that as a 'weakness' and is trying to take advantage of you. I really hope you are able to resolve this quickly and with a minimal amount of stress and hassle. I think one of Sue's 'why you won't win' letters sounds like a great idea...perhaps your attorney could draft one for you and this guy would go away.
Good Luck.

Kats,
I am with Amy and Sue, I can't stand bullies. I think the letter is a great idea. I don't have anything really helpful to add to everyone else but I do hope that things work out for you and DH. Stand up to him and I bet he backs down. Esp. with all the work he left undone. GESH!

Good luck :-)

I want you to know that our attorney bills could have easily been two or three times (or more) what we paid. EASILY! We didn't call the attorney unless we had news from the Idiot; we kept calls short and to the point; we used his paralegal for a lot of our communications. But he was also very good at wanting to save us money, and worked with us; not all attorneys are so upfront about money matters.

Definitely find an attorney who specializes in contract law, hopefully with experience in construction. The fact that you signed the builder's own worded contract actually works slightly against him, because it is always assumed that he who wrote the contract has the most to gain by any contract dispute. Your problem was in not running it by an attorney before signing. We made the same mistake.

Oh kats- sighhhhhhh. I can't believe the crud you've had to deal with! From all your postings, it would seem that you and DH have tried to be reasonable and work through everything, but your GC has definitely crossed the line-and more than once!
Wish there was something we could all do for you!
-Mel

Kats, my heart goes out to you. I am so sorry for your troubles.
We are facing a problem with a GC that we didn't even hire, but interviewed during our home construction process. He thought he had the job in the bag, but basically flaked when we tried to engage him in any thought process concerning what we wanted him to do with our home.
We didn't hire him and now, a year later, he still "bullies" us periodically with a letter from his lawyer (a friend of his), we have to respond, costing us $$ for our lawyer, and a lot of sleepless nights!
We are still not over with this (*&*(&*!, we are waiting for the next letter.
I know how you feel and would proceed cautiously.
Please keep us posted, wish I could help.
V.

Amy, luckymom23, kelntx, Mel, and Vfish,
Thanks again for your support. This forum is wonderful for helping to promote strength no matter what stage a person might be at in their build.

DH has been responding to (and saving) emails from GC for about a week. GC's wife moved to Texas at the beginning of our build (18 months ago) and GC's been there for a couple of weeks now. Over the build he'd take off every couple of weeks to go there. And, everytime he went there nothing would get done with our build. We didn't know about the Texas home until after we hired him. Also didn't know he had just started building another house not far from us. So basically he was building 2 homes and trying to support 2 homes over the last 18 months. I can imagine all that could put a crimp in anyone's bottom-line. But that's not our fault!

I can't do bullies either. All I want to do is transform this house we've waited for SO LONG into a home. We need a lot since we gave away almost everything before we moved. Shoot, when you stop and think about it I could do some pretty sharp decorating for $100,000 !!!

Fairegold,
Thanks again for your help.
In our business, we've dealt with attorney fees many times. It's the type business that some hope could be a stepping stone to possible "larger fish lawsuit" but we've never had a judgment against us. And, we've never brought a lawsuit against anyone. Of course, there's always a first....

I really wish I had taken pictures of the stuff DH has done lately to finish the house. I just didn't realize when he was doing things that our GC was even contemplating this crap. I just thought he was on yet another vacation and we were getting real tired of having scaffolding in our livingroom!!! I will however take pictures of my unfinished pantry, my unfinished wood counter and my laundry sink that isn't hooked up yet. I thought maybe it might help to call the owner of the other home GC just finished and see if he might agree to write something on his thoughts of GC's building "style". The owner called us a couple months ago to ask if we were having problems (he was) so he might be helpful to us now. In fact, he might be helpful if we compose a letter like Sue mentioned. Having 2 owners who had similar problems with this guy might be very helpful if it gets to a judgement stage!

Kats, that is some real chutzpah. I feel for you.

We've been in our home for a little more than a month after a 13-month build (that was only supposed to take 9 months) - the delays were excruciating because they would have been avoidable by someone with even a modicum or organizational ability, which our GC does not have. He's a lovely guy on a personal level but not nearly as good a contractor as he thinks, and we sorely need a break from the unrelenting pressure.

He still has not finished one major item - two sets of steel stairs that go from our rear porches to our rear terrace, as well as several small punchlist items. There's always an excuse. He's disorganized, but resents it when we step in to organize, or take any kind of action to impose a deadline - this from a guy who is routinely hours late to scheduled meetings and never met any deadline in the construction process, even ones he imposed himself. Our new theory this week is to give him whatever time he needs (within reason) but to limit his intrusions into our home life to one day a week, arranged in advance, with a "one hour" rule - if he's not here within an hour of when he is supposed to be he has to wait until the next week. Apparently that is being just as "mean" and "difficult" as complaining about unmet deadlines - he thinks we should be there 24/7 for him to do what he wants, or we should just give him a key and trust him, in any event on his schedule. No way - he has needed watching every step of the way. We've done way more than our share of work that he should have done - I feel for you there too.

He's been inches away from being fired more than once on this job, and we've talked to a construction lawyer several times about really contentious issues. In the end, even though we have the cash leverage (we still owe him more than our 10% retention, primarily because he's too lazy to do a requisition), it just hasn't been worth it to fire him.

Assuming that you don't need clean title for a takeout of your construction loan, it sounds like you have little to worry about. I don't have huge faith in the court system, but even then I find it hard to believe that a judge would buy his argument that his subs are not under his control. Also, if he's not done, how in the world could he be owed a completion bonus? The courts are always a risk, but in this case it seems to me a pretty small one.

If you do have to close any new financing that requires title work, you may need to think about it a bit more strategically. Do everything you can to get your loan closed without a lien being recorded.

Otherwise, my advice to you is the advice I have a hard time taking myself. It's only as big a deal as you make it. So hire a lawyer and instruct him or her to deal with it in as cost-effective a manner as possible. Then let it go and enjoy your new house.

kats -- I just can't imagine WHY you would have considered giving your GC a "going away" present at all! His little trips to Texas, etc. delayed your build by a year. You don't owe him a dime. He doesn't get any gold stars (or bars) for his behavior. It looks to me as though he has you two pegged as easy marks. (I speak from experience, having been one!)

I like Sue's method of sending him a letter explaining what he has to lose if he files a lein. Wait to see if there is a response other than more threats. If he does file, THEN you have to do more, but not until then. I wonder at what point he could be said to cross over into harassment and YOU sue HIM.

How about posting a new photo of your lovely house? Get our minds off the negatives and on to the positive.

vfish -- I don't see why you "have to respond" to YOUR bully's letters. They are just threats unless and until he attempts to file a suit. Am I missing something?

Chazas,
WHY do I keep having flashes lately of that GC on the movie MONEY PIT!
Have you noticed most GC's seem to fall within the same mold? Were they all created equal???
Disclaimer....just kidding for those of you who ARE decent GC's

I don't think we need anything for loans, etc. But I don't like the idea of being threatened with this lien. I take my credit to heart and this just isn't right.

I did talk to DH last night about drafting a letter but he said he's basically done that with the emails they've been exchanging. He has copies of each. I advised him on getting a construction attorney if this gets any worse. I also said we might need to ask the other home owner if he would put his thoughts down to prove a pattern. DH doesn't think it will get to point of needing either a formal letter or a new attorney. He has emailed GC to have a sit down this next week when GC returns from Texas. That meeting will be like 2 bulls in a china shop.

Chisue,
The reason we've been more forgiving of GC is this is a small town. We pretty much know all the contractors. We've know GC from when he was young, his parents are friends. So far, the parents friendship isn't in jeopardy and I honestly doubt it will be even if lawsuits come into play. Hard for some to understand but it is that type of friendship.

You know, I think you're right about posting pics now. It would be a good way of seeing the positive....even if we don't have furniture! LOL.

Vfish,
I'm like chisue, WHY would you even be responding to a man you never hired? Was there ever anything signed? Or, is this bully sighting a "handshake" that never really happened?