Customer trying to terminate Contract on false accusations

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What is the correct procedure to follow in order to protect myself from losing any of my legal rights to this in progress contract and what the customer owes?

The customer does not want me on the site and claims he is going to hire another contractor to finish the job. The customer said he does not intend to pay the remaining balance on the contract, because he wants to deduct the cost of the other electrical contractor’s work to finish the job. I have a signed contract and a signed change order with a balance of about $10,000.00 when finished. I am concerned about the Warranty ramifications and liability of another electrical contractor.

The customer has fabricated a phony story that I threatened his wife and forced me off the job site at ¾ of the way through setting finish. This problem is a result of the owner’s wife trying to manipulate me into installing chandeliers when we had contracted to install surface mount ceiling fixtures. I told her I could not assemble and install a chandelier for the same price as a surface mount fixture. After I refused to do more work for the same money and I refused to let her try to manipulate me emotions flared. He is claiming that I can no longer be at the job site because I threatened his wife and family (I did not threaten her and I have a witness). He wants me to send him an invoice for what is completed and a substitution of contractor document. The customer said, “When I get the invoice, if I think it is a fair price, I will pay it”. He followed that up with “If it is not fair, I will do everything in my power to put you out of business, including a Yelp review that will keep every customer away”.

I am a licensed electrical contractor in California (12 years), working in Orange County. This project is located in Newport Beach California. This is a small 2 story beach house approximately 2200 sq. feet that was gutted, and being remodeled. The owner is managing this project as owner builder. The owner does not live in the house and lives about 1 ½ hours away. The owner visits the job site infrequently and no one is on site to manage the project. This project was started in February of 2016 and is still not finished. Countless problems have caused delays because of the lack of building experience by the owner and an inexperienced architect. The project has been delayed so many times that a few of the subcontractors have been waiting do the final work since March of 2016. Most of the subcontractors I have talked to are complaining about all the changes and losing money on all the extra time it is taking to do the work.

On July 11th there was an earlier problem with the husband harassing me and trying to manipulate me because he had some compulsion to get the siding contractor to start before the rough electrical and plumbing was finished or inspected. He sent me numerous angry texts and an email claiming I abandoned the job site. He said that if I did not show up at the site that he was going to hire another contractor to finish. The truth of the matter is that I was in South Carolina at my daughters wedding and the owners had been notified in advance. I even sent the owner my schedule for July in advance. In October while the drywall contractor was installing the drywall a couple of rain storms came in and poured in through the still not completed roof. All the electrical j-boxes upstairs and bathroom exhaust fans had water pouring through. Most of the drywall had to be replaced. The siding was in of course but who needs a roof? None of the electrical that was rained on has been replaced.

If anyone has some experience with this kind of problem and would be able to give me some helpful advice, I would love to hear from you.
 
Yeah, find a lawyer.

In addition...

- If you haven't started doing so, write down a detailed log of everything that has happened and happens from now on. Reference e-mails, pictures, etc...
- I would type up that invoice, although if you have the time and money I would consult a lawyer before sending it. Sending it will probably help you, especially if you have some kind of proof that the customer asked you to. Regardless, cataloging what you would be owed up to this point will help you later even if you don't send it.
- [Edited:] I've never done it, but I believe you can file a 'Notice of Cessation' if you have not worked on the project for 60 days, after which you can file a lien for any unpaid amount you are owed. Be sure to have both of these things lined up to do one right after each other, as there's a time limit on filing the lien. You may not even need the first step if it's been 60 days. If 60 days is coming up, file the lien. Again, the lawyer would probably be helpful for doing this right.

You may be able to find a low cost legal service that will give you advice on the correct way to do things without charging you to do it themselves and get heavily involved. Also the $10,000 amount is the max for small claims court, to my understanding. So if you have to go to court, that might make it easier on you, and it might be worth settling for that if the amount is a little bit over.
 
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I am a licensed electrical contractor in California (12 years), working in Orange County. This project is located in Newport Beach California. This is a small 2 story beach house approximately 2200 sq. feet that was gutted, and being remodeled. The owner is managing this project as owner builder.

ohoh, sounds like you are in the "no bid" zone, ground zero being saint andrews, for a 3 mile radius.
i looked at the jobs quoted i'd done in that no bid zone, and the amount of time i'd wasted on those folks,
and i won't do anything in that area, period. haven't for about 6 years.

you can't swing a dead cat there without hitting three attorneys. back bay is a money sinkhole.

do you have preliminary notices filed?
do you have recourse to lien?
make up a reasonable bill, and send it
to him. see what he does. he will probably pay it.

pull your permit. if he mans the job, go down to city hall, and
make sure work is not being done on your permit.

warranty? you have no warranty issues. you never completed
the job.
 
ohoh, sounds like you are in the "no bid" zone, ground zero being saint andrews, for a 3 mile radius.
i looked at the jobs quoted i'd done in that no bid zone, and the amount of time i'd wasted on those folks,
and i won't do anything in that area, period. haven't for about 6 years.

you can't swing a dead cat there without hitting three attorneys. back bay is a money sinkhole.

do you have preliminary notices filed?
do you have recourse to lien?
make up a reasonable bill, and send it
to him. see what he does. he will probably pay it.

pull your permit. if he mans the job, go down to city hall, and
make sure work is not being done on your permit.

warranty? you have no warranty issues. you never completed
the job.
No prelim if you have a direct contract with the true owner.
You will not be able to force the owner to continue the contract. The CSLB will not side with you if it goes that route. That is why the CSLB does not want to allow you to get paid more than you have into the job. The CSLB wants to provide the owner with a out at your expense.


If you can somehow persuade the owner to continue you are a great negotiator.

The owner cannot legally disparage you on the internet but good luck on fighting that one.
Be careful ,
Save the money on the lawyer and cut your losses , settle quickly.
You need the owner to take complete responsibility for the work after you leave. That will be the tricky part. The law will still see you as responsible for the work you have done.
 
call the lawyer you have on retainer to handle business matters for your company. that is what you pay him for. he will give you good advice about how to handle this.

my guess is that the best you will be able to do is limit the damage. the lawyer will have a better feel for this both from a legal perspective and because he is not in the middle of it so it is not personal to him.

my second guess is that this guy has done this kind of thing before to stiff contractors.
 
In October while the drywall contractor was installing the drywall a couple of rain storms came in and poured in through the still not completed roof. All the electrical j-boxes upstairs and bathroom exhaust fans had water pouring through. Most of the drywall had to be replaced. The siding was in of course but who needs a roof? None of the electrical that was rained on has been replaced.


First I would try to collect as much money as I could without a lawyer. Then I would make sure the inspection department is aware of this fact.

Once they take out the old drywall due to water damage I would think a new electrical rough inspection would be required. Maybe a new framming inspection.

PS. How did they get an electrical, plumbing, HVAC and framming inspection with out the roof being complete in the first place?
 
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my second guess is that this guy has done this kind of thing before to stiff contractors.


This is not a good tatic for trying to stiff a contractor. It's really hard to find someone dumb enough to take over a job like this for anything close to a reasonable price. If you are called to look at a job like this there is an automatic red flag. The first thing you do is call the original EC to see if he got paid and when you find out he didn't , well.

I don't know if all these threats the owner is makeing are phone converstations or Email but if there are records that's not very smart. I know of a plumbing contractor that makes a living sueing people and most of what they say about him is true. He does some real crap work but will sue for slander in a heartbeat.
 
As much as I dislike lawyers, we do have them for a reason.

This customer is already costing you with this ridiculousness. Let someone trained to handle this kind of thing do it.

At very least you might end up getting what you would be owed at this point, less attorney fees, if what you say happened is truth and the defense doesn't convince a judge otherwise. Customer is likely paying the next guy more then he would have paid you to finish it under the original contract.
 
I am closing this thread. It is clear the poster needs to contact a lawyer, not electricians. I would hate to see the poster act on advice here and end up in trouble.
 
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