Home Contractor vs. Homeowner

We have all heard how construction/renovation projects take longer than we think they will. How you're lucky if they're done by a certain date. How you should be thrilled if your contractor actually shows up. The question is, when is delay par for the course, and when does it rise to the level of unreasonable or become actionable (resulting in an actual claim against the contractor)? Of course, the place to start with all of this is the actual contract. Homeowners and contractors should spell out how often the workers will be on site and for how many hours. There should be minimums, and everyone should be clear about managing expectations. As an aside, a person should always be designated as the point person for the job when the contractor is not on site. Both sides should know what that person's authority is, and how to reach the GC if that person is not authorized to make decisions. What should a homeowner do, however, when it is clear the project is not on track;...

For those who are wondering why I am posting so much this week, it is because I am away on vacation. I would like to take this opportunity to ask those of you who read my blog to ask questions and suggest future blog posts. This post is not directly about contractor or homeowner issues, but I have been thinking lately about the stress of dealing with a lawsuit. Parties vary regarding their involvement in their own disputes. Some are happy to hand their claims over to an attorney and check in now and then, and others want to be directly involved and strategize about their claims. However, no matter how much or little involvement you choose, you should realize that lawsuits are extremely emotionally taxing. First of all, the financial burden cannot be underestimated. Lawsuits are unpredictable. Even if your own attorney is prudent about expenses, he or she has no control about how the other side conducts themselves. Opposing counsel and/or parties can make life miserable and driv...

Unless a contractor has a provision in his contract that entitles him to attorney's fees when pursuing a claim against a homeowner, at least in Massachusetts, the contractor will be forced to pay his attorney's fees whether he is choosing to arbitrate or litigate. If the homeowner opts to file with the Home Improvement Contractor Arbitration Program in MA, then neither side is entitled to attorney's fees. So, let's assume the following scenario: The contractor has fully performed, and the homeowner now refuses to make the final payment, or the homeowner is withholding payments, or the homeowner has unlawfully terminated the agreement (the contractor should have the terms for termination included in her contract). What should the contractor do? First of all, do not underestimate the stress and impact of a lawsuit (the subject of an upcoming post). It should always be one's goal to try to resolve disputes without a formal proceeding. Contractors should attempt to comm...

I have recently been thinking a great deal about when a homeowner should hire an independent expert to review the work that a contractor has done at his/her home. This usually arises when the quality of the work has come into question. The homeowner is concerned that some items may need to be re-done, and subsequent contractors may have alarmed the homeowner with sweeping statements about extensive repairs. In addition, the renovation work may have failed the rough inspection, or the building inspector may alert the homeowner to violations of the building code. I used to tell homeowners to get two or three quotes from subsequent contractors. If the quotes were all similar, then the homeowner would be able to verify the problems. However, as with new hairdressers or dentists, each contractor has his or her style, and there is a fair amount of subjectivity in looking at someone else's work. The advantage with an independent home inspector is that he has nothing to gain from finding ...

Once the relationship between a home contractor and a homeowner has broken down, and a demand letter has been sent, a decision must be made about how to proceed if the dispute is not resolved. At this point most homeowners and contractors are fairly anxious. They are wondering about what happens next, and what it is all going to cost. The steps I take in these situations is always the same, but the outcome will vary. First, the homeowner side: 1. What are my damages? I have posted on damages before, so I am not going to explain how to determine damages in this post, but this is the most important question. For claims less than $5000.00, one should consider small claims court or in Massachusetts, the Home Improvement Contractor Arbitration Program. For claims between approximately $5000.00 and $20,000.00, one should consider the Home Improvement Contractor Arbitration Program. The reason is simple; the filing fee is low, the Office of Consumer Affairs and Business Regulation admin...

In Massachusetts, a homeowner does not have to make the final payment until the work is done to "the mutual satisfaction of the parties." What is a contractor supposed to do when the homeowner is never quite satisfied, or the punch list of items to be completed never seems to end? I have seen this situation occur with my contractor clients, where homeowners take advantage or have unrealistic expectations about when a project is complete. How can contractors avoid this problem? 1. Start with a a good contract that spells out the work to be done and the materials to be used, IN DETAIL! 2. Make sure that all change orders are in writing, and adjust the completion date accordingly. Make sure both the contractor and the homeowner signs off on all change orders. 3. Designate in the contract who the decision makers are and make sure they sign the contract and all of the change orders. 4. When the job is complete, have the homeowner create a punch list and discuss each item in detail...