Taking a Beating

[admiralporklung]

My business took a big shot. We are almost complete with a twelve screen movie theater; about 90% complete with the installation--permanent power is on all feeders pulled, lights are on in each auditorium, etc.

We are out of money. We have already spent all of the contract money and need about $150,000.00 to complete, money that I do not have, I am completely tapped out.

I have ZERO dollars in changes, though the schedule has been compressed--they were at least two months behind schedule getting a roof on, delaying walls stadium seating etc. This meant that the drywall contractor came in with forty guys working seven twelve hour shifts to make up for lost time that I was ill prepared to keep up with. I proposed running the speaker pipes underground which was nixed early. I ran nearly 8000 feet of two inch emt twenty five feet off of the ground, and did not submit for a change until the work was almost done. I did a poor job documenting all of the little changes that occur all of the time. I was busy running the job in the field and just wanted to deliver a top notch product and let the chips fall into place. The drawings are an absolute mess and the GC is (I don't want to make this personal) an unscrupulous sort who talks of "gentleman's agreements" and the like. The coordination was a disaster, the PM was not available to contact, and we got no responses to RFIs and just tried to work through the gray areas.

Do I have any recourse? I've had a couple of jobs that didn't make any money, but this job, with such large numbers might just bankrupt me--my business, my house, everything.

Please share your ideas, experiences and advice with me. Thank you.

 

[Rewire]

You need to see a banckruptcy attorney on monday. If you are st up as an LLC your personal assets should not be at risk. Get th advice of an attorney and follow it. Their should be some money that has not ben paid to you if you are only 90% complete so you might be able to negotiate with the GC.

 

[hbiss]

Their should be some money that has not ben paid to you if you are only 90% complete...

Yes, how much is still owed you and what are the change orders worth? How did this happen? Did you underestimate the work or were there unforseen conditions that cost you more money? Do you have a bond? Any attorney that you contact should be well versed in construction, not just any shlock.

-Hal

 

[admiralporklung]

Yes, how much is owed and what are the change orders worth? How did this happen? Did you underestimate the work or were there unforseen conditions that cost you more money? Do you have a bond?

-Hal

They still owe about $200k. The change orders I have submitted for work completed about $120,000.

It happened because I kept pushing the job to get done on time, neglecting to request change orders. The GC wont even sign off on little changes- new receps and the like. The details are so many, and the architect has so many conflicting notes in the bid documents...One example.
We have fire alarm rough in. When the AHJ approved drawings came in there were many changes in the emt system. The response was "the drawings say a complete system based on AHJ requirements" thus no changes.


I have a payment/ performance bond on the job and a good construction lawyer with great references.

 

[lakeview100]

Change Orders

Change Orders

How much was your Change Order for the 2" EMT? Try and get around $85,000. A job like that should have a ton of Change Orders for lots of $, so the owner is prepared to pay.

Put through about 5 more for other work that was completed that wasn't on the drawings. Everything that is not on the Drawings is an Extra.

Call the PM and tell them you need the CO's approved or you will pull off the job. There is still time to get the Extras.


Mike

 

[admiralporklung]

How much was your Change Order for the 2" EMT? Try and get around $85,000. A job like that should have a ton of Change Orders for lots of $, so the owner is prepared to pay.

Put through about 5 more for other work that was completed that wasn't on the drawings. Everything that is not on the Drawings is an Extra.

Call the PM and tell them you need the CO's approved or you will pull off the job. There is still time to get the Extras.


Mike

The Change Order for 2" was $80,000.

I am scared to pull off the job, can't they void my contract?

 

[lakeview100]

Even with the $120,000 in Change Orders submitted you still need another $150,000?


If you pull off the job, they can terminate your contract, but you can say that to the PM on the phone to try to get his attention about approving Change Orders.

 

[admiralporklung]

I will survive if my changes are approved. Barely.

 

[lakeview100]

Call the PM's cell non-stop until he answers and tell him you need the CO's approved.

Then you might be able to pick up a few more CO's from Extras requested by the Owner.

 

[Rewire]

We are out of money. We have already spent all of the contract money and need about $150,000.00 to complete, money that I do not have, I am completely tapped out.

I have ZERO dollars in changes,QUOTE]

So how will you met payroll ? Did you do change orders with no approval? Why do you ned $150,000.00 to complete?

 

[admiralporklung]

We are out of money. We have already spent all of the contract money and need about $150,000.00 to complete, money that I do not have, I am completely tapped out.

I have ZERO dollars in changes,QUOTE]

So how will you met payroll ? Did you do change orders with no approval? Why do you ned $150,000.00 to complete?

I am meeting payroll by tapping my personal credit. I have cut back on labor to do the work which is explicitly in the contract. $150,000.00 is my estimated cost to complete.

 

[69gp]

I would review your contract to see if there was wording in there for delays caused by others. Any job that I am on that starts to slow down I send out notifications that it will impact the project. if the roofer was the one holding you up from getting your work done you may be able to go after him,

Good Luck
Steve

 

[roger]

If you haven't already you should contact the Architect and Owner to find out if the GC has submitted your COR's and where they stand. If the GC has been paid you need to let the Architect know you haven't.


Roger

 

[petersonra]

I feel bad for you but you have learned the hard way that being a nice guy in business will result in you ending up in bankruptcy.

In any contracting business, getting the change orders and getting paid on time and for every change is the only way to survive.

Hopefully your attorney is plugged in well with how contracting businesses operate and can get you some money before you are totally hosed.

 

[GUNNING]

Bankruptcy attorney sounds the best bet. Find a good one. They have lots of experiences that you do not in this situation. Low cost is not the answer to finding a good attorney. You need a good seasoned one. One not afraid to make a few phone calls and letters. The GC wont want an insurance company in on his playground. He wont get paid if he is the cause. Theater job will be delayed till the sand box is cleaned. You do have leverage.

 

[gadfly56]

They still owe about $200k. The change orders I have submitted for work completed about $120,000.

It happened because I kept pushing the job to get done on time, neglecting to request change orders. The GC wont even sign off on little changes- new receps and the like. The details are so many, and the architect has so many conflicting notes in the bid documents...One example.
We have fire alarm rough in. When the AHJ approved drawings came in there were many changes in the emt system. The response was "the drawings say a complete system based on AHJ requirements" thus no changes.


I have a payment/ performance bond on the job and a good construction lawyer with great references.

Around here an AHJ who marks up the drawings is asking for a law suit. He's not the designer of record. He can make notes separately on the changes he wants to see, but he can't commit you on contractual issues by actually changing the drawings - that's just crazy. In fact, if he changed my signed and sealed drawings, I'd probably send a note the Board of Professional Engineers and Land Surveyors to take action for practicing engineering without a license.

 

[JohnE]

Around here an AHJ who marks up the drawings is asking for a law suit. He's not the designer of record. He can make notes separately on the changes he wants to see, but he can't commit you on contractual issues by actually changing the drawings - that's just crazy. In fact, if he changed my signed and sealed drawings, I'd probably send a note the Board of Professional Engineers and Land Surveyors to take action for practicing engineering without a license.

I'm not seeing where it says the AHJ did any design or marked up anything. Just says that the drawings that were approved had changes from the bid set. At least that is my take.

 

[cdslotz]

How low were you from the next bidder(s)?

 

[gadfly56]

I'm not seeing where it says the AHJ did any design or marked up anything. Just says that the drawings that were approved had changes from the bid set. At least that is my take.

Maybe I'm jumping the gun, but this stood out " When the AHJ approved drawings came in there were many changes in the emt system." This suggested to me that the AHJ made the changes. Perhaps the OP can clarify.

 

[Sierrasparky]

Maybe I'm jumping the gun, but this stood out " When the AHJ approved drawings came in there were many changes in the emt system." This suggested to me that the AHJ made the changes. Perhaps the OP can clarify.

i dont see the problem , AHJ or Plan Check always redline plans, That is what they do. The plans are either re-submitted or stamped Accepted with redline changes from the plan checker. If the engineer has a problem then he can address the Plan check. in either case the OP obviously bid on a non stamped approoved plan. I can only fathom that the OP either took the job as given or forfieted his position.

What I hate is the Standard AIA contracts have the arbitrary and capricious clauses. I have seen plans that say the EC will provide a complete code compliant system as per structure as built. So in other words if the foot print increases I stil need to add electrical as per my original bid. I realize how this language came to be. The builder wants to reel in the costs. He does not want to see all the extras. Maybe he is a fraud or honest. Who knows. The problem is Architects, engineers and designers do not take responsibility for the problems or changes they create. Owners try to avoid signing for necessary agreed to changes. Subcontractors continue the work so as not to be in default. The subcontractor is always the one to bear the cost changes. Untill the law takes care of this and protects the subcontractor.
I had a GC do this to me many years ago. I told the GC that I would proceed on all work except for the changes until the changes are signed. And if the delay causes other issues or costs so be it it will be his problem. The next thing that happend in the GC came to me , got right in my face trying to intimidate me and threaten me. I had to call the police the entire crew whitnessed it. The GC wound up paying me some money to go away. He really got screwed in the end. Later I heard he lost all his property , it took a while but karma got to him.

Good luck.