"Doc" wrote in message
news
I'm in Florida working on getting post-hurricane repairs
made to my house.
Replacement of the roof, drywall replacement in several
rooms and full house
carpet replacement.
I've found a General Contractor who says they can do the
work. They left an
agreement with me to sign before they'll begin any contact
with the
Insurance company. I realize many of you aren't attornies
but am hoping some
have had experience with this sort of issue and see what you
think about
some points on the agreement - under each I'll include any
questions
concerns about the point. If you see something, by all means
speak up. By
the way, sorry for the all caps, but I did this by OCR off
my scanner. It
would take forever to type it all:
3. SHOULD DEFAULT BE MADE IN PAYMENT OF THIS AGREEMENT FOR
MORE THAN
FIFTEEN DAYS, A LATE CHARGE EQUAL TO FIVE PERCENT OF THE
AMOUNT DUE PLUS
INTEREST FROM THE DATE THEREOF AT A RATE OF ONE AND ONE-HALF
(1 1/2) PERCENT
PER MONTH (18 PER ANNUM) OR SUCH MAXIMUM AMOUNT ALLOWED BY
LAW, AND IF
PLACED IN THE HANDS OF AN ATTORNEY FOR COLLECTION. ALL
ALLOWABLE ATTORNEY'S
FEES AND LEGAL AND FILING FEES SHALL BE PAID BY THE
CUSTOMER.
I wonder about coordination of money from the Insurance
company vs when the
contractor is going to be doing the work. Do they normally
not begin work
until the insurance company has agreed to the costs?
thats variable...beware though florida is not famous for
great contractors. Some exist no doubt but thats the main
issue.. the contractor personally.. not the paper work.
6. COMPANY RESERVES THE RIGHT TO REVOKE THIS PROPOSAL 90
DAYS FROM DATE
ACCEPTED. AFTER 90 DAYS, COMPANY RESERVES THE RIGHT TO
REVISE ITS PRICE IN
ACCORDANCE WITH COSTS IN EFFECT AT THE TIME.
a red flag... valid if the work is never started...but once
started a way to screw to the wall..Ive never seen such a
clause before...that takes guts.
So far this contractor has lost big points with me on this
clause alone. its a set up as i see it.
Is what they're saying is that they can back out any time up
to 90 days or
that it's only good for 90 days?
Its weasly in many aspects.. unclear is always
bad..especially when it allows for escallation explicitly.
7. THE COMPANY SHALL NOT BE LIABLE FOR FAILURE OF
PERFORMANCE DUE TO LABOR
CONTROVERSIES, STRIKES, FIRES, WEATHER, INABILITY TO OBTAIN
MATERIALS FROM
USUAL SOURCES, OR ANY OTHER CIRCUMSTANCES BEYOND THE CONTROL
OF THE COMPANY,
WHETHER OF A SIMILAR OR DISSIMILAR NATURE.
Reasonable by itself...combined with the other clauses
probably a ticking time bomb. I doubt if the contractor
has a solid local reputation.. if thats the case, this would
be one to avoid.
I wonder what constitutes a "labor controversy"?
"Joey tells Billy to phuck off" 'so we were short crew,
and yer job had to wait'.... vague legal wording in a legal
document is a boquet of red flags..thats done deliberately by
someone who wants access to your money.
11. IF THIS AGREEMENT IS CANCELLED BY THE CUSTOMER, CUSTOMER
SHALL PAY TO
THE COMPANY TWENTY-FIVE PERCENT (25) OF THE TOTAL AGREEMENT
AMOUNT AS
LIQUIDATED DAMAGES, NOT AS A PENALTY, AND THE COMPANY AGREES
TO ACCEPT SUCH
AS A REASONABLE AND JUST COMPENSATION FOR SAID CANCELLATION.
THE PARTIES
ACKNOWLEDGE AND AGREE THAT DAMAGES THE COMPANY MIGHT
REASONABLY ANTIC-
IPATE IN THE EVENT OF A BREACH OF THIS AGREEMENT BY
CUSTOMER(S) WILL BE
DIFFICULT TO ASCERTAIN AND THE AMOUNT STIPULATED HEREIN IS A
REASONABLE
ESTIMATE OF SUCH DAMAGES.
What if they keep stalling on work and I get sick of waiting
for them and
want to look for someone else?
Thats not even reasonable..lack of time frame makes it
almost a total fraud. I know of no decent contractor who
would employ these tactics, especially in combination.
If you want to jerk this guys chain ask for a list of
satisfied customers that you can go *visit, look at the work
and talk to... watch him go balistic with outrage...a way to
discourage further inquiry.
12. PAYMENT SCHEDULE: DEDUCTIBLE DUE UPON INSURANCE PROVIDER
APPROVAL. FIFTY
PERCENT (50) OF THE TOTAL AGREEMENT AMOUNT DUE UPON DATE OF
DELIVERY OF
APPLICABLE MATERIALS. BALANCE DUE UPON COMPLETION OF WORK.
ALL PAYMENTS MUST
BE MADE TO THE COMPANY. ONLY PAYMENTS MADE TO AND RECEIVED
BY THE COMPANY
WILL BE CONSIDERED TO SATISFY THE PAYMENT OF THIS AGREEMENT.
PAYMENT
SCHEDULE SHALL NOT BE AMENDED WITHOUT THE PRIOR WRITTEN
APPROVAL OF THE
COMPANY.
Is this normal? Btw, it's not quite what the contractor's
rep said when he
came to do a preliminary look-see. He said on the roof that
they get 1/3
when they get the materials, 1/3 when they "start driving
nails" and 1/3
when I was happy with the job.
Another set of red flags ..
15. DURING THE DURATION OF THE WORK, THE CUSTOMER'S
HOMEOWNERS INSURANCE
WILL BE RESPONSIBLE FOR ANY INTERIOR DAMAGE AS LONG AS THE
COMPANY HAS TAKEN
APPROPRIATE ACTION TO PROTECT THE ROOF DURING THE REPAIR OF
THE ROOF.
When could this be an issue?
its weasly. weasly is not what one is looking for in a
contractor..but thats probably close to the florida standard.
You might do better running an ad for escaped felons.
17. THE COMPANY IS NOT RESPONSIBLE FOR PRE-EXISTING
CONSTRUCTION
DEFICIENCIES THAT MANIFEST THEMSELVES DURING THE
CONSTRUCTION PROCESS, I.E.
NAIL POPS, WOODROT, DECKING DEFLECTION, ETC. IF A
CONSTRUCTION PROBLEM IS
POINTED OUT PRIOR TO CONSTRUCTION AND COMPANY IS NOTIFIED IN
WRITING,
COMPANY WILL TRY TO ASSIST CUSTOMER TO CORRECT THE
PROBLEM(S) ON A TIME AND
MATERIAL BASIS.
Reasonable sounding but with traps.. ALL decking deflects..
how much is another issue. Not stated its an obvious trap..
after they get the roof torn off they will find issues and
'deflection' to fix it will cost another 5 or 10k etc. If you
dont go for that they pull off the job and collect their 25%
plus, and keep all other amounts you paid.
Go talk to a national chain has a reputation to protect..see
what they quote you.
They seem to be referring largely to decks here which isn't
an issue in my
case, but what is a "nail pop"? Any way it could apply to a
roofing job?
anything can be made to apply...if you dont like it you can
hire an attorney for 5 or 10k...they know thats not viable for
you..so you will pay a bunch of 2 to 5k extra's until you
finally go nutz.
19. COMPANY ACCEPTS NO LIABILITY TO INDEMNIFY OR HOLD
CUSTOMER HARMLESS FOR
DAMAGES TO PERSONS OR PROPERTY, EXCEPT THOSE THAT ARE THE
DIRECT RESULT OF
COMPANY'S NEGLIGENT ERROR OR OMISSION WHICH OCCUR DURING
PERFORMANCE OF THE
COMPANY'S WORK. COMPANY DISCLAIMS ANY AND ALL LIABILITY FOR
DAMAGES TO
PERSONS OR PROPERTY RESULTING FROM MOLD GROWTH WITHIN ANY
PART OF THE
BUILDING ENVELOPE DUE TO MOISTURE ENTERING THE BUILDING
ENVELOPE PRIOR TO
COMPANY'S COMPLETION OF INSTALLATION OF THE ROOF
SYSTEMS/MEMBRANE, SIDING,
WINDOW AND GUTTER SYSTEMS OR AS THE RESULT OF DAMAGE TO OR
PENETRATION OF
THE INSTALLED ROOF SYSTEMS/MEMBRANE, SIDING, WINDOW AND
GUTTER SYSTEMS BY
OTHERS. CUSTOMER UNDERSTANDS AND AGREES THAT COMPANY SHALL
HAVE NO
RESPONSIBILITY AT ANY TIME AFTER COMPLETION OF THE WORK FOR
DAMAGES OF ANY
KIND TO PERSONS OR PROP
ERTY LOCATED BELOW THE INSTALLED ROOF SYSTEMS/MEMBRANE,
SIDING, WINDOW AND
GUTTER SYSTEMS, WHETHER OR NOT SUCH DAMAGES RESULT FROM (A)
LEAKS OR
WEATHER-ORIENTED SOURCES OR (B) MOLD GROWTH.
Any problems here?
By itself, no problems.. a simple cya clause. except for the
first few lines regarding owner liability for damages, say one
of their men trips on your sidewalk.. that can be arranged...
this contractor says you are liable.
Decent outfits dont use contracts in this way.
20. THE COMPANY'S MONETARY DAMAGE LIABILITY FOR ANY CLAIM OF
PROPERTY DAMAGE
ARISING OUT OF THE COMPANY'S PERFORMANCE OR NON-PERFORMANCE
OF THIS
AGREEMENTSHALL NOT EXCEED THE TOTAL AGREEMENT AMOUNT.
Thats legitimate.. other legitimate clauses are often used
as smoke to distract from the bogus ones.
I'm fuzzy on what's considered "the total agreement amount".
Since anyone signing this paper agrees to whatever escallation
etc the contractor wants.. it is vague..deliberately. Makes
it so no decent attorney would touch the case...so you pay
whatever or they put a lien on your house.
23. FLORIDA LAW APPLIES TO THIS AGREEMENT. ANY LEGAL
PROCEEDING RELATING TO
THIS AGREEMENT SHALL BE FILED EXCLUSIVELY WITH THE COUNTY OR
CIRCUIT COURT
OF ORANGE COUNTY, FL. THE RIGHT TO JURY TRIAL IS WAIVED.
The right to a jury trial is waived? Could this come back to
bite me?
Oh ya...
I
wonder under what circumstances it could become an issue.
Dealing with these guys would be the negative circumstance.
24. THIS AGREEMENT IS COMPOSED OF THIS BACK PAGE, THE FRONT
SIDE OF THE
AGREEMENT AND A SEPARATE PAGE WHICH CONTAINS A MANDATORY
FLORIDA DISCLOSURE
REGRADING CONSTRUCTION LIEN LAW. AND ALL MATTERS
INCORPORATED HEREIN BY
REFERENCE AND SHALL BE CONSIDERED THE ENTIRE AGREEMENT BY
THE PARTIES.
Any thoughts?
A nasty, bogus, tricky contract that nails you squarely to the
wall if you sign it and leaves you wide open for a rip off.
I wouldnt deal with this guy myself.
Here is the deal... on a job like you have, an honest gross
is in the 30 to 50% range...net way less than half that.. the
job is not real big in the first place, lets say 30k...so the
guy is looking at a legitimate profit of 5 to 7k.
He can double or triple the net profit with just a little
fudging. His contract sets that up for him.
What I'm looking for is if you feel these seem like normal,
reasonable
provisions or if you see anything that's questionable.
Thanks for all shared wisdom.
You will find the decent guys are backlogged for years in
florida..those that can 'do the job now'... then present this
kind of contract are in business to rip off as much as
possible, you will be lucky to get the work done, let alone
well.
that is not the interest of these sorts of people.
imo
Phil Scott