💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

RobertR32 (Missouri)
Posts: 6
Posted:
We're a 6-unit, very modestly funded vintage building. We have sunk about $38K into a decking job that was contracted at $41K, is still not complete (contractor has been MIA) and was started more than two years ago. Making matters worse is that we're learning that that contractor made construction choices that have seriously compromised the safety of the decking. And it seems is could cost us up to $50K to fix it. Any input on whether legal action would be worth it? Thanks.
KerryL1 (California)
Posts: 14,550
Posted:
Three years ago, our Board, at my urging as a then-board member, wrote to our attorney complaining about the quality of about 1/10 of the finishing polishing of metal cladding on part of a high rise tower. It had appeared good for a while,, but got duller & duller. While we were "out of warranty," he advised that the statute of limitations (SOL) was 4 years in this case. So he advised we move quickly against the painting (which had been the major bulk of their work) contractor.

He wrote a solidly fierce letter to the contractor demanding that they meet the standards of professional work and re-do this area + touch up some painting areas that were inadequate. The company guys met a few times with members of our Board and agreed to do the repairs. I think it was in the neighborhood of S15,000.

So, Robert, your contractor may fix & finish the work vs. full-on legal action.

So, I think, Robert, that your tiny HOA should spring for a consultation with an HOA or contact attorney to see what your rights are. I don't know how long the SOL is in your state. In your case, I this sounds like work that your muni would require one or more permits for, Have they inspected what has been done so far?? I imagine the attorney would want reports from the city.

How does your HOA pan to pay to fix this problem if the contractor doesn't?
KerryL1 (California)
Posts: 14,550
Posted:
To add: I'm not in any legal profession.
GregoryT1
Posts: 315
Posted:
As Kerry mentioned you can contact the contractor. The problem is that they have skipped out of town and were doing substandard work. It does not look like you may not want them to finish the job but want reimbursement.

Beside legal action via the court system is there any consumer protection agency in your state? I had a contractor do work on one of the properties I look after. This was after storm Ida. They did another job really well and they got the reconstruction project. After day two I told them to get off the property. The work was shoddy especially the carpentry work for joists that it was a hazard. Legal advice was that if I sued I could get treble awards for the initial down payment. This is based on the state's business law on contract

I had my hands full with getting the project going with another contractor and I filed a complaint with the state's consumer protection division and actually got back half of the deposit. That was perfect and was good enough. The company I went after was a legitimate company.

The problem in your case is this outfit even legit? If they are still operating and bringing in money then you could take legal action or see what agencies that are out there that can assist.

In my area there are a few television news shows that will help out folks by showing their story and go publicly against "bad agents" including contractors.

Hopefully we get some more responses and more choices for you.

DouglasK1 (Florida)
Posts: 2,046
Posted:
You can talk to an attorney to get a feel for how much it would cost to pursue legal action and weigh that against the potential judgement. Then you should try to determine what the chances are on collecting on a judgement. If the contractor is struggling financially and essentially has no assets, you could win in court and still get nothing.

Escaped former treasurer and director of a self managed association.
KerryL1 (California)
Posts: 14,550
Posted:
To repeat: what worked for our HOA was a strict demand letter for our HOA attorney to the contractor. There were threats in it, th' I caner remember the exact nature of them. I think this is a good start and worth a few hundred dollars for advice & a letter.

KerryL1 (California)
Posts: 14,550
Posted:
To repeat: what worked for our HOA was a strict demand letter from our HOA attorney to the contractor. (I didn't rec your HOA contacting the contractor as it sounds like you've done that) There were threats in it, the letter ' I can't remember the exact nature of them. I think this is a good start and worth a few hundred dollars for advice & a letter.

GregoryT1
Posts: 315
Posted:
Douglas's answer is a wonderful summary on ANY LEGAL MATTER. You can find any lawyer who will do anything for you. It is the gifted one based on your input who will give out the pros and cons of a lawsuit. When you start talking real dollars and the chance of winning you start acting objectively and not emotionally and then you can find out is it worth it or not. I had to navigate multiple legal items with the condo and fortunately avoided litigation. In this case it really is a business contract issue and I like Douglass and Kerry's inputs and also take a look at outside of the box options.
CathyA3 (Ohio)
Posts: 6,299
Posted:
I agree with comments so far.

I'd add one thing: treat this as a financial matter. Initial talks with the lawyer should give you a reasonable idea of what it would cost to sue the contractor and what your chances are of ever seeing any money. When you're dealing with shady or incompetent contractors, there's a very real chance that you won't see any money, and legal costs only throw good money after bad. Sometimes the cheapest alternative is eating your losses and considering it a lesson well learned. This can be hard to swallow when you feel as though you've been scammed, but being upset can result in unwise choices.

(Speaking of lessons, for those who are reading along, this is why it's considered best practices to get bids from contractors with good track records and a history of satisfied customers, ask for references, and check those references. Also check for warranties and guarantees. This helps you avoid the fly-by-night guys. It's always possible for a job to go wrong, but the ethical contractors will make good on their work.)
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By DouglasK1 on 07/16/2024 6:11 PM
You can talk to an attorney to get a feel for how much it would cost to pursue legal action and weigh that against the potential judgement. Then you should try to determine what the chances are on collecting on a judgement. If the contractor is struggling financially and essentially has no assets, you could win in court and still get nothing.

If you win a judgment, you can get a writ of execution, confiscate his vehicles and sell them.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By TerriS6 on 07/17/2024 9:01 AM
Posted By DouglasK1 on 07/16/2024 6:11 PM
You can talk to an attorney to get a feel for how much it would cost to pursue legal action and weigh that against the potential judgement. Then you should try to determine what the chances are on collecting on a judgement. If the contractor is struggling financially and essentially has no assets, you could win in court and still get nothing.


If you win a judgment, you can get a writ of execution, confiscate his vehicles and sell them.

Assuming he has any vehicles with any useful amount of equity. Like I suggested above, if you get a judgement, there might be money or assets that can be discoverable and used to pay a judgement, or there might not be. Also consider that if a contractor is pulling a fast one on one customer, they are probably doing it to others, getting sued by others, and OP might not be first in line trying to collect.

Escaped former treasurer and director of a self managed association.
LetA (Nevada)
Posts: 2,679
Posted:
Lawyer UP. Did you hire a licensed and bonded contractor? File a complaint with your state contractors licensing board.
Providing their business insurance premiums were paid at the time you could recover your damages.
About the only thing that could happen is that contractor would be ineligible to attain a state license again
as any DBA in the state.
TamaraG7 (Florida)
Posts: 35
Posted:
Quote:
Posted By RobertR32 on 07/16/2024 2:03 PM
We're a 6-unit, very modestly funded vintage building. We have sunk about $38K into a decking job that was contracted at $41K, is still not complete (contractor has been MIA) and was started more than two years ago. Making matters worse is that we're learning that that contractor made construction choices that have seriously compromised the safety of the decking. And it seems is could cost us up to $50K to fix it. Any input on whether legal action would be worth it? Thanks.

...And you've waited this long? Pick up the phone & contact the Association attorney ASAP...
GregoryT1
Posts: 315
Posted:
Here is another out of the box idea. Check if the original contractor is licensed. Find a licensed contractor who can do the job and can fix the job. Once you have it lined up either have that contractor finish the job or have an inspection and fail the original contractor. Your new contractor finishes the job. This all depending the first one is licensed. Then that is mark against the original and you have official documentation of the failed inspection. If this goes down the legal path. Also take a look at the individual(s) who went with this original contractor. Your process of selecting someone needs to improve real fast since you will need to find someone to get things corrected and you can't make another mistake. You don't have used of the deck and it's dangerous.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here