builder bailed

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difowler1

Senior Member
I do 99% of my work for one residential builder although I am an independent electrical contractor. The situation: I did the electrical rough on a home on a custom build. The builder who I work for, and the customer signed an agreement to part ways. Now the customer is planning on being his own general contractor. This customer and the builder parted ways due to financial disagreements. I dont have all the details of their financial disageements. The disagreements that have taken place in the past were the result of the customer requesting a construction method or requesting materials that made profit on the job impossible. They would insist on these requests even though they were not part of the original agreement, and did not want to pay extra for change orders or delays that were caused due to their request. Now that the builder and customer have parted ways due to this problem, my question is, do I have a legal responsibility to do the electrical trim out.
 

Fulthrotl

~Autocorrect is My Worst Enema.~
I do 99% of my work for one residential builder although I am an independent electrical contractor. The situation: I did the electrical rough on a home on a custom build. The builder who I work for, and the customer signed an agreement to part ways. Now the customer is planning on being his own general contractor. This customer and the builder parted ways due to financial disagreements. I dont have all the details of their financial disageements. The disagreements that have taken place in the past were the result of the customer requesting a construction method or requesting materials that made profit on the job impossible. They would insist on these requests even though they were not part of the original agreement, and did not want to pay extra for change orders or delays that were caused due to their request. Now that the builder and customer have parted ways due to this problem, my question is, do I have a legal responsibility to do the electrical trim out.

is the permit under your license?
can you trim it out, and get paid for it? (this is important)
 

difowler1

Senior Member
builder bailed

is the permit under your license?
can you trim it out, and get paid for it? (this is important)

The house is in the county. There is no permit. The financial disagreement part would make so eone wonder if they would be paid.
 
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GoldDigger

Moderator
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Location
Placerville, CA, USA
Occupation
Retired PV System Designer
If you were a subcontractor to the GC, then your contract was with him and not the HO.
My guess is that when the GC bailed your role ended. Unless you got paid by the GC for work not yet done. I think you are free to contact with the owner as GC or not as you wish. Legal advice based on your local laws would be desirable.
Do mechanics liens work well in your area?
 

__dan

Senior Member
I do 99% of my work for one residential builder although I am an independent electrical contractor. The situation: I did the electrical rough on a home on a custom build. The builder who I work for, and the customer signed an agreement to part ways. Now the customer is planning on being his own general contractor. This customer and the builder parted ways due to financial disagreements. I dont have all the details of their financial disageements. The disagreements that have taken place in the past were the result of the customer requesting a construction method or requesting materials that made profit on the job impossible. They would insist on these requests even though they were not part of the original agreement, and did not want to pay extra for change orders or delays that were caused due to their request. Now that the builder and customer have parted ways due to this problem, my question is, do I have a legal responsibility to do the electrical trim out.

The base case would be that the owner is a third party in your contract between you and the GC. The generally, third parties have no rights or obligations under your contract with the GC. Your base case would be to lien the property for any unpaid invoices, promptly. The owner would have no contract with you for any work beyond the GC's termination date.

There may be some language in the owner/GC termination agreement spelling out how subs and material suppliers are to be treated, but there can be no assumption about this, only what was agreed to in writing and disputes over unpaid invoices. I would assume there is no language transferring your contract with the GC to the owner, and if so it may be illegal (not enforceable unless you also agree).

Best assumption is your contract terminated with the GC's and for you to get fully paid up to date before contemplating any next step. The next step would be a new contract direct with the owner or the owner's new GC/agent. The condition of termination is unclear as there is likely no condition subsequent language in your contract providing for this event. Could be breach of contract. Getting paid under the old contract and entering a new contract are two separate and unrelated quantities. They are not dependent or tied to each other in any way (if so it would be already in writing in the first contract). You are not obligated to finish with the new owner (the GC did not sell your contract and doing so may not be legally enforceable or legal). Most likely, your contract is in breach by the GC's non performance to continue.

Make and submit a full up to date invoice for everything you want to get paid for now, assuming your contract is terminated or breached. This is your demand letter. At this stage, the owner may be more generous now than later if he wants to continue quickly with the project, so test this by trying to get the payment (for you to also walk away paid up to date).

Once you get the check, you will have an idea what continuing with this customer may be like, and contemplate entering a new contract to finish the job.

So, your internet advice is to get the check, paid up to date. If not, get a lawyer who can get your check for you.
 

difowler1

Senior Member
builder bailed

If you were a subcontractor to the GC, then your contract was with him and not the HO.
My guess is that when the GC bailed your role ended. Unless you got paid by the GC for work not yet done. I think you are free to contact with the owner as GC or not as you wish. Legal advice based on your local laws would be desirable.
Do mechanics liens work well in your area?

From my understanding, a mechanics lien would only hurt someones credit and not allow them to sell the house without settling the lien. The house may not be sold while I am alive

. I am paid upto date.
 
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__dan

Senior Member
From my understanding, a mechanics lien would only hurt someones credit and not allow them to sell the house without settling the lien. The house may not be sold while I am alive.

He will not be able to refinance or get a mortgage with the lien on it (hopefully). If it's a builder's loan with draws of money the bank holds, that may stop.
 

difowler1

Senior Member
builder bailed

I have been paid up to date. Everything is settled with the rough. There could be a future pay problem after signing up with a new GC. I had a different customer refuse to pay me before. I used a collection agency to get the payment for me. The customer ended up paying, but the collection agency kept the money. Sometimes its difficult to win those battles.
 

Little Bill

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Location
Tennessee NEC:2017
Occupation
Semi-Retired Electrician
From my understanding, a mechanics lien would only hurt someones credit and not allow them to sell the house without settling the lien. The house may not be sold while I am alive

. I am paid upto date.

Since you are paid to date, I would not worry about doing the trim unless asked to do so or you signed a contract to do so. You might want to talk to the GC that hired you and ask them if he thinks you would get paid from the HO.
Then you could talk with the HO (and new GC) to see if they want you to do the trim.
If they want you to finish then you could make a contract with them. Maybe get a draw to start and balance when completed. It probably would be better for them to hire you since someone else might not know how you do your rough. They might spend more time "wondering" than working!

This is all IF you are interested in doing the trim!
 
Unless also terminated, it sounds like you still have a contract with the GC, but if the GC is no longer working for the homeowner, then you can't to that work for the GC. Probably time to officially terminate this contract.

Once that's done, there's nothing in the way of working with the new GC or the HO directly.
 

mopowr steve

Senior Member
Location
NW Ohio
Occupation
Electrical contractor
Seams everybody want to talk money but maybe the OP is more concerned about liability.
I would recommend detailed list of the work you performed along with the details of your contract with GC and its demise with homeowner with dates. Then you could always make a copy and mail it to yourself (so it's post stamped) and do not open and keep with file should anything crop up in the future.
 

kwired

Electron manager
Location
NE Nebraska
Seams everybody want to talk money but maybe the OP is more concerned about liability.
I would recommend detailed list of the work you performed along with the details of your contract with GC and its demise with homeowner with dates. Then you could always make a copy and mail it to yourself (so it's post stamped) and do not open and keep with file should anything crop up in the future.

That is what I was thinking, have good records of what you have done, what you were paid for, what was remaining to be completed - if anything to help prove what you did and did not do on this project should you somehow be drug into future litigation. Any contract you had is already null if the project was never completed, but that don't mean the owner can't try to drag you through the mud over something they are not happy about, or should someone be injured or killed someday and they try to blame what you did install for it.

Legal advice from licensed legal counsel may not be a bad idea if you have concerns, it may cost much less then what could happen someday.
 

growler

Senior Member
Location
Atlanta,GA
Now the customer is planning on being his own general contractor. my question is, do I have a legal responsibility to do the electrical trim out.

How could you have a legal responsibility to do the trim, you don't even have a legal right to be on the property.

It's the guy that's willing to take over a job like this that's got to worry. If the owner wants it I would just leave it with him and not look back.
 

romex jockey

Senior Member
Location
Vermont
Occupation
electrician
. I am paid upto date.

Then either renegotiate or>

forest-gump-running1.jpg


~RJ~
 

kwired

Electron manager
Location
NE Nebraska
Colorado has State inspectors for juristictions that don't have Electrical Inspectors -- they also regulate permit cost, applications & contractor licenses. your state doesn't?
Same here, jobs still go unpermitted at times. Is harder to get away in cities/counties that have electrical AHJ as they are usually somehow connected to the building AHJ and if one is involved the others are as well.

Go out in the middle of "God's country", you may need permission to build something, but is more of a zoning/conditions of use permit and not so much a building and construction codes permit. And of course also lets local county clerk/assessor know there is improvements so they can increase property value for property tax purposes. Once you are permitted to build you are on your own and even though the State electrical AHJ still has jurisdiction, if they never know you built something they are never coming to look at it. Right or wrong it happens.
 
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