Wow, that is unreal. Best of luck.

Only 5% of the contract price left, but you’re only out of pocket for $100,000?

not sure that makes sense. In any event, you need to find an attorney specializing in construction law, with an eye toward helping you get the home built. Sounds like your builder is pretty sensitive towards being publicly exposed, so it sounds like a bargaining chip, but I’d proceed after consulting legal help.

Find a good attorney. Why don’t you ask the neighbors which attorney they used ?

You're not necessarily "on the hook" to pay unpaid subcontractors. That depends on your state's mechanic's lien laws and whether you paid the general contractor for that portion of the contracted scope of work. Here in VA, you would only pay one time. For example, if you paid the GC for plumbing rough-in work, you're not obligated to pay an unpaid plumbing subcontractor for that same scope of work in the event the GC failed to pay the subcontractor.

You need legal counsel from an attorney licensed in your state whose practice includes residential construction and real estate.

Issue stop work order. Gather all facts and correspondence. Hire construction lawyer.

I'm curious... did you have any other expectation about what type of advice you would receive?

I was hopping. at my wits end, grasping at straws. maybe there was something I didn't think of. don't want to tell them to stop work then they blame me. looking for good ideas or stupid ones. move in and change the locks? right now my next step is to get a lawyer to start arbitration. might have to find a better lawyer, but definitely do something.

The bank has disbursed 95% of the money and they are not concerned???

80% , 15% from my pocket so what is built is worth 80% give or take.

Do they require documentation before they pay?

Apparently not ... they did say no when he wanted to draw another 10k. Suppose do "inspections" but just cover thier own asses. ... I do suspect the bank to be in on the scam to, just enough to make a profit, but not enough to go to jail.

Why isn’t the bank more involved? And holding back funds because of a lack of progress? How do you get a disbursement from them if things aren’t happening? Isn’t the bank doing the usual inspections? How are they approving draws if the normal due diligence is happening?

If everything grinds to a halt because you fire this guy, which you’ll have to do, then how do you plan to move forward? What is finished? What isn’t? Where are you in the actual build? I’m assuming it’s dried in and weather tight? You can’t move in without a CO. To get a CO, you’ll need to spend more money to get this finished. Is that going to be a problem? (Of course it will.) How big of a problem?

There is a "scam"? Bank is in on it? I'm out of this thread.

@User,

We've taken over construction on a number of projects where the original contractor went bankrupt. While subcontractors can file liens for non-payment, in Virginia , if the client paid the general contractor for the subcontracted scope of work and the subcontractor didn't get paid, their lien won't provide any relief. Consumers only pay once in Virginia.

Mechanics lien laws may vary from state to state, so it's important that homeowners consult local legal counsel.

if I put him on the internet he threatens to sue and stop work.

So let him. I mean, if what you’re saying is factual, and you can prove it, then he has no grounds to sue OR to stop work.

So, what‘s his name?

It sounds like he has already stopped working so what do you have to lose. This is so sad.

While subcontractors can file liens for non-payment, in Virginia , if the client paid the general contractor for the subcontracted scope of work and the subcontractor didn't get paid, their lien won't provide any relief. Consumers only pay once in Virginia.

Most states have similar rules. Mechanic's liens are ridiculously easy to file, they are much harder to perfect. A lot of people who probably wouldn't have to pay, panic when they get the notice of the preliminary lien.

In most areas these defended liens are just judgments against the contractor, but in Texas the penalties can include prison time (up to 10 years).

@C JM

It is important to remember that your goal is to get the best house you can get for a reasonable amount of money given the situation that you are in. This sounds simple enough, but it is incredibly hard for most people to actually do.

The amount of money you have already paid your contractor is immaterial, as is the amount of time you are over, and just toss fairness out the window. All that matters is how much more are you going to have to pay, who are you going to have to pay it to, and what kind of house do you get for that payment. Your contractor doesn't deserve any more money and yet the best position for you might be to give him more money. That is a tough pill for anyone to swallow, but if it just plays out that way, it just does.

Certainly a consultation with a construction attorney is time well spent even if it just informs you of your options, their likelihood of success, and their cost. That is part of how much more you will have to pay and who you will have to pay. However, I wouldn't be so fast to fire a contractor unless you know that you are going to get a better house and/or a better price by doing so.

Good luck.

Sammy has a point, don't let him bully or threaten you.

if I put him on the internet he threatens to sue and stop work.

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So let him. I mean, if what you’re saying is factual, and you can prove it, then he has no grounds to sue OR to stop work.

Remember the contractor has a house right now, the OP doesn't.

Something that everyone should realize... It is a very long walk from being right to favorable outcome. Let's play this out for a minute. Suppose you go ahead and put him on the internet and out of spite he stops work and refuses to restart the work unless you settle with him for defamation (which you didn't even do).

So in the middle of a pandemic backlog you are going to have to file a suit for damages from his delay. You can hazard a solid guess that he will be found in breach around August of 2021 at best. The courts are unlikely to compel him to finish the work, only to pay you the damages you incurred replacing him. Those damages are discharged in bankruptcy, however, your attorney fees are not and so you are going to have to pay your attorney. Even if he doesn't declare bankruptcy you have to collect the fees which simply may not be collectible.

If you are that big of a masochist, just slam some delicate body part in your desk drawer a few times. It will be less painful, a lot cheaper, and a whole lot faster.

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After the entire thing is over write whatever review you want. But do wait to do it from the comfort of your new home.

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I know you are probably hesitant to cooperate with this G.C. but he is not afraid of your stick, so you are probably going to have better luck with the carrot. I would advise accepting you are going to have to pay more and work with him to find conditions that are set in stone for receiving those payments.

These situations are not unusual in the construction industry, which is massively undercapitalized. Your contractor has gotten 95% of your money for completing 70%(ish) of your job. He is likely to move on to getting the next 95% from someone else and will use some of that money to complete your job, but you are no longer a priority as he likely needs the next 95% more than he needs anything you can provide.

"Lay Gaga" is a spam editor.

The bank would almost never be in on it. The profit would never be worth the risk. There are a ton of rules, regulations, guidelines, etc. that banks and mortgage companies must adhere to, especially in Texas that has additional homestead rights. Banks go through audits every 18-24 months. If you think they are in on it, contact their regulator. That stuff gets taken very seriously. But that doesn’t help you now. You do need to tell the bank to stop paying draws as you think the builder is perpetrating a scam. You need an attorney that focus on real estate. There was probably one listed on your loan documents. Texas has attorney requirements.