Here are the ways discussed to deal with troublesome contractors and how to hire or fire them so that you are prepared if a problem arises.
Table of Contents
- Assemble all evidence
- Fire the contractor
- Fire a bond insurance claim
- File a complaint to the state licensing board
- File a case in court
- Post public reviews
Working with contractors is one of the most complex parts of investing in real estate. However, even if you don’t have a property manager for a real estate investor, working with contractors is necessary, whether you’re renovating, building, or remodelling a house.
Here are the ways discussed to deal with troublesome contractors and how to hire or fire them so that you are prepared if a problem arises.
Assemble All Evidence
The primary step when dealing with a troublesome contractor is to collect all the evidence and prepare paperwork. During the hiring process, you had to order copies of their license, bond document, insurance documents, and of course, a clear written contract with the scope of work. Take photos at each stage of the project and take notes of delays or progress.
In addition to information about their work, keep a log of all messages, including text messages, phone calls, and emails. In particular, any material agreement between the two of you must be recorded. Unluckily, we cannot trust the old “handshake” convention in situations where lacs or crores are involved.
Finally, keep track of all payments, deposits, and submissions to the contractor. Make all payments electronically or by check. If I pay half of the bill in cash, where will the money trail be?
Fire the Contractor
Although this seems understandable, it isn’t always the smoothest dealings. At first, your contractor will most likely challenge the termination as a breach of contract. This is why it is crucial first to write down how they violated the treaty agreement. There are a few things to keep in mind when documenting the misconduct of your contractor:
Don’t dig into a deeper hole. Once you’ve gathered enough evidence of a contractor’s poor performance, fire the contractor immediately so you don’t have to pay constantly for poor or mediocre performance.
File a Bond Insurance Claim
Before moving on, please note that you can only file a claim if there is a licensed contractor. This is why you should only work with insured and licensed contractors for more significant projects.
By contacting the insurance company of the contractor, you can get back the money already spent. Even the threat of a lawsuit often convinces misguided contractors to complete the job correctly.
File a Complaint to the State Licensing Board
If the contractor is licensed, you can file a claim with the council if necessary. No contracting company wants that. Licensed contractors earn more on projects because they can charge more than others, so they don’t want to compromise their license in any way.
By threatening to file a complaint in the council, you can force them to do so. Usually, they want to resolve the dispute in such cases, and you also have a better chance of getting your money back.
File a Case in Court
By filing a lawsuit in the primary court, you don’t have to invest more to get justice. Not only are such cases affordable, but they also give you the ability to represent yourself without any legal fees, and you don’t even have to hire a lawyer.
Certainly, if you are paying a considerable amount to a contractor, consider hiring a lawyer, even if that amount falls under the influence of the primary court.
Post-Public Reviews
While this strategy may not provide you with any financial benefit, the threat of posting bad reviews on many websites can convince a contractor to fix their flopping work.
Even if that doesn’t work, the other person looking to hire a contractor might think twice a time before hiring them.
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