I plan to sue one of the contractors that did work for me in a flip. I hired him to do siding work. The county stoped the work because he went on farther than he should have before inspection. He stalled on this for 6 months. I lost a lot of money since then. He told me it was for another reason. I called county myself and found out it wasn’t. He also did the wrap work wrong. I am selling property now. I will sue if I sell or don’t sell. Any advice?

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By the way, this was a huge 100k flip project. It was going to take a long time. The siding stopped me from being able to do work inside. I now am a year into this flip and staying with this property for more months will suck. I can still finish it but I will be losing on other deals I have to get to. That’s why I want to sell but I want to sue for damages

Did he remedy the work? Are you suing for consequential damages since you have prolonged expenses (utilities, taxes, insurance) plus loss of income in the delay?

Do you have a contract?
Why wait so long if you could have someone come in and take over and recoupe any additional costs from suing him? (ie if he his work to remain is $10 but the new company is $15 then he could be liable to pay the difference).

Has he ever worked in your township before? When you got the permit, did you give him the list of required inspections?

Yes, I was paying a hard money lender every month but my lender is now wanting out because it’s been a year. I have to either sell or pay his money (whatever he financed) which is roughly 90k. So now I’ve gotta come out of pocket for that. This flip will probably take another 4 months to finish and I just don’t have that time on this flip anymore. I have other bigger deals waiting for me. But I don’t want to let the contractor walk like nothing. I am having to sell this property at a loss as is to another investor. I want to recoup the loss plus possibly what I could have made, if that’s even possible to do. Also, the stop work order is displayed in front of the house. I sent him a picture of it and it had the guys number (guy from the county). All the county guy wanted him to do was lift the wrap and just see the work underneath. The contractor said it was for some other reason and all this time he held it up when it was something soo simple. He’s like, well you’re in breach of contract because you’re canceling. I’m like, yes because you’ve cost me a lot of time and money and I can’t stay here anymore. I’m losing out on other deals I have on the other side of the state that are waiting for me. My connections have been waiting for me but I’ve been stuck here because of this sh**. I was suppose to move to the other side of the state but now I’m delayed because of this.

To be honest, I would have fired immediately when you found out and hired another (reputable) siding guy that may be pricier but can get the job done correctly.

I flipped a house 10 years ago. Found out one contractor wasn’t coming to the house everyday and work was moving slow. Gave him a deadline on something. It wasn’t completed. I told him never to come back to the house again and he was fired. It sucked. But found another guy to finish the project.

I’ve lost too much time and money to let this slide. I want to sue. But just want to make sure I have a solid case here. I’m not letting him continue the work because I can’t stay in that property anymore. Also, having to pay my hard money lender out is a hardship on me. My lender wants his money back. It’s been a year and he’s not renewing the contract. It’s about 90k. So now I’m having to sell at a loss to another investor. I do have the 90k but that was never the plan and I need that money for other investments I have.

Sounds like shoddy project management to me. Who was responsible for managing the resources on the project, timeline, cost? It’s no different in consulting we get terrible resources sometimes. A project needs to be delivered on time and within budget. We never go after the terrible resource. We roll them off the project, refill the position, take the 4-6 week hit and minimize the damage done. This might have meant you picked up the slack while you hired a new guy. Usually your general contractor fills this role. If you acted as the general contractor this responsibility was on you.

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