[Logdog69]

Good morning, first time posting here and I was hoping for advice from fellow tradesmen, I contracted my biggest log home to date last March just over 5,000 sq ft with detached garage, just south of a million dollar build , year worth of work for me and my subcontractors, , just a note I have been using same people for years, I get the job they have the job. Good guys, anyway long story short, took the homeowners to pick out cabinets and counter tops ect. This was a Saturday, Monday comes and I get email saying that I will no longer be making decisions or signing anything to do with the project and he wants me to send contracts and everything else to due with the project to him to see. Now to date he has ran over 100,000 through my bank for materials and permits plus my time and labor how would you guys deal with this

 

[Pounder]

Seems like about 90% of the story is missing.
I'm very curious to know how the owner is using your bank account.

 

[MoreThanOfficeWork]

Sounds like someone might have underbid you, or homeowner had sudden financial troubles.. We have a cancellation clause in our contract that gives them a certain amount of time to cancel then charges a certain percent of the entire contract. What has the homeowner signed so far? Where are the purchased materials? Has the homeowner paid anything to you?

 

[Kowboy]

Send him an email explaining how the contract can be terminated with terms heavily in your favor. I'd tell all those great subs if they ever want another job from you, they are to do no work for this guy.

 

[fourcornerhome]

I think the only contracts they are entitled to are the ones they signed, and they should already have those.

 

[Logdog69]

What I meant was deposit plus another check to get materials already bought. So I have purchased floor system ect.

 

[MoreThanOfficeWork]

What I meant was deposit plus another check to get materials already bought. So I have purchased floor system ect.

Return what you can to get some money back and charge the homeowner a cancellation fee.

 

[Pounder]

What I meant was deposit plus another check to get materials already bought. So I have purchased floor system ect.

No one here is going to be able to help you without the entire story.
As it stands, you were going to build a million dollar log home, looked at cabinets with the owner, then they may have decided to take over the project. You seem to have spent a $100k that you may or may not have been repaid.
What exactly do you think we will be able to do with that information?
I'm sorry the project isn't working out for you, it's a tough spot to be in, but the only recommendation anyone can give you at this point is speak to an attorney.

 

[Logdog69]

Thanks

 

[VinylHanger]

But stick around. You will learn a lot and there are some very smart guys here.

Also, it would be great to see some log home builds. That's what I started out doing, many moons back.

Sent from my SM-N975U using Tapatalk

 

[Joe Fairplay]

I contracted my biggest log home to date last March

I'm not sure I understand your questions.
You claim you have a contract.
What does your contract say will happen in this scenario?
No one can give ANY advice without knowing what the contract prescribes as a remedy.

 

[Jaws]

A. INITIAL CASH PAYMENT - Prior to commencement of the Work, Owner shall pay to Builder $XXX,000.00 as a
portion of the Total Contract Price (Initial Cash Payment). Builder may use the Initial Cash Payment in
consideration for initial construction or pre-construction expenses, and a portion of the Builder's Fee. A portion of the Initial Cash Payment ($42,000.00) shall be retained by the Builder as liquidated damages if this
Contract is terminated for any reason other than a Builder's Event of Default (as defined below) in addition to any
other rights or remedies allowed herein or by law. Builder and Owner agree that it is not possible to calculate the
exact amount of damages that Builder will suffer if this Contract is terminated for a reason other than Builder’s
default and this amount is a reasonable approximation of the damages. This amount is in no way a penalty.

What you're describing is breach of Contract (my contract anyway), I'd pay all hard costs to subs and vendors (including any fees for materials nor used and having to pull off the job etc) plus my builder fee on those items, as well as remove my portion of the deposit (42,000 in my example) and send the rest back after they released me of all liability to finish or warranty the project. I use a version Texas Association of Builders contract it's real clear on this stuff, it states I have no obligation to use any sub contractors or vendor I don't choose regardless of price or clients preference

Sounds like a lot of the story is missing here but hopefully your contract has some contingency for this stuff

 

[Logdog69]

Yeah arbitration, go with that decision, guess I was looking for a well this is what happened to me scenario, not legal advice I've already been in touch,with one so thanks again

 

[Pounder]

Yeah arbitration, go with that decision, guess I was looking for a well this is what happened to me scenario, not legal advice I've already been in touch,with one so thanks again

No one could possibly know if it had happened to them since we don't know what happened to you. Or even what state this occurred in.

 

[MoreThanOfficeWork]

We had a customer signed up for 20 windows. Then they were approached by an investor who was buying up the entire block. They of course didnt want the windows anymore because they were going to sell to this guy who was going to tear it all down.
Well we already purchased the windows. We charged them for the windows and a cancellation fee. Told them they needed to arrange the windows to be picked up from our warehouse or they would be charged a storage fee.

 

[Logdog69]

Keep in mind i have never had this scenario before customer signed a fixed price contract for the build. as you are aware then I have to come in under that for profit, so with downpayment we secured subs for everything bought floor system and ordered windows because of special order delays,and picked out cabinets, pulled permits ect then out of the blue customer wanted to take over my job as gc and get new bids new subs bla bla bla. Making it impossible for me to continue under his demands hence the breach of contract my contract says to first try mediation, if it doesn't work then arbitration with that decision final but no idea of penalties for it so I'm at the beginning of that process and was wondering if anyone else had gone through this