When we were forced to replace the aluminum main feeders to our facility (which this contractor damaged), we chose to install (8) 400 MCM copper instead of (16) 500 MCM aluminum (derating our service from 1,000A to 600A). We agreed to pay the difference between the 2,880 feet of copper, and the 5,760 feet of aluminum for which the contractor was liable. The cost difference was $10,218. The contractor demanded we pay him up-front for this upgrade but we refused. So we are still holding that money which is owed to him.and after you've collected his bond, and sued him, and there isn't any money,
you can deduct it as a bad debt at tax time, and write it off.
and until he settles with his bond company, he's out of business. nobody will bond him, and i bet he doesn't have $10k to self bond. folks with duct tape and goop don't have spare change, usually.
Additionally, our property owner generously offered to pay half the cost of the generator rental for keeping our facility powered while those damaged feeders were being replaced. The contractor should have been on the hook for the whole cost, but the owner wanted to make a goodwill offer to provide an incentive for the contractor to perform the work safely (see my other thread about "Pulling wire through 480V energized panels."). IMO this was an unnecessary concession. Why should we have paid for the contractor to do the job correctly and in compliance with OSHA standards? And it's not like the contractor was grateful and worked to ensure we were satisfied with his repairs. He's been fighting us every step of the way, even complaining about our wanting to megger test the newly pulled wires and trying to prevent us from doing so. In any case, we still are holding those funds too. I don't know what that rental cost was, but I'm guessing our share may have been about $1,000.
So at least we are holding ~$11,000 of money we owe him. That won't stop him from suing us if we use those funds for completing the repairs. But it's better than us paying wholly out-of-pocket and then trying to sue him to recoup our losses.
As for him, he has money and assets, although his personal assets (house, etc.) are likely shielded by his LLC.