Being held hostage by builder AGAIN

15 years ago

We signed a flat price contract with our builder to do an addition/renovation. He has now on several occasions demanded that we pay him for "extras" which were definitely not "extras" (like the installation of a new electric panel, required to install geothermal heating/cooling). On each occasion he has stopped work (and even once sent us a notice of termination) unless we paid him.

The job supervisor told us that the builder is mad because we haven't made any change orders, which is how he makes his big bucks.

Well we are now on the verge of obtaining our certificate of occupancy, and he's doing it again. This time he is claiming that we should pay extra for the under cabinet lighting, although it is clearly included in the contract. Since the project is basically done and he can't get his final payment until we get the certificate of occupancy, he is now saying that he will not provide us a tax receipt for the geothermal until we pay him. The tax credit is probably worth $12,000.

Is this normal? Do we just pay him (he's seeking about $500), or refuse on principle? Is there something we can do? Goodness knows we don't want to have to go to arbitration over this. Life's too short.

This is so frustrating. I don't understand how someone can behave so dishonorably. If any of you have suggestions (or can just commiserate -- maybe this happens all the time), thank you!

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Comments (5)

weissman
15 years ago
He sounds like a real sleazeball. I don't think it happens all the time but it probably isn't uncommon. If you can get a $12,000 credit by paying him $500, then that's a good deal at some level. Another option is to get a lawyer to send him a threatening letter - a letter might actually be enough to frighten him if the contract is as black and white as you say it is. Do you have any other way of getting the receipt - like from the manufacturer he purchased it from - that might be a way to do an end run around him. Also, threatening (or having a lawyer threaten) to file a complaint with the licensing board or state attorney general's office might work. Good luck.
weissman
15 years ago
pay him the money, get all the paperwork from him and THEN file complaints with the licensing board, BBB, etc. You may or may not get your money back but at least you'll have the satisfaction of causing him a lot of hassle and probably cost him more money spending time responding to the complaints. Licensing boards generally take complaints very seriously.
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cpartist
15 years ago
Call your state's attorney general and your local DA. What he is doing is called extortion and is illegal.
dianalo
15 years ago
Try and get something in writing from him or tape a conversation (check with your state's law on that). Make sure you point out that this is the 3rd time he is extorting you.

Then pay if you have to and do everything suggested above and sue his ass (sorry, but no other phrase will do)!
User
15 years ago
I am so sorry this is happening to you. I'd be afraid of the lousy job he might be doing, cutting corners, etc. since he is behaving this way. Do you know a lawyer you can chat with before doing anything?