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| According to one detailed email I received--there are legitimate explanations for some contractors to require more than a 10% down payment for some jobs. Read his rationalization/explanation below.... |
We all know what is going on with a number of contractors in the community who have taken huge deposits from homeowners for work on houses and then not completed any work on the projects. It is horrible, and EVERYONE is horrified, angry, and wants justice. And justice will be served I believe.
Meanwhile we are all looking for ways to better protect citizens from unscrupulous actors who will always be present in a free society.
To that end, we have had several meetings on this topic and have discussed the many ways in which we are going to modify our practices with respect to licensing, investigating, and punishing those who prey on fellow citizens. We are also working on fixing issues on the contractor competency board which have been discussed heavily in the media already, multiple times.
BUT HOW MUCH SHOULD A HOMEOWNER PUT DOWN ON A JOB?
At one of our recent meetings, the question was put to our director of building services, Tim Tolbert, from the board: "How much is a standard deposit for a contractor?" To which Tim replied "Nothing or no more than 10 percent" (paraphrased)
Is that always the case though? I received an email recently from one area contractor that does specialty work for property owners and he has a rational explanation for jobs that require more than a 10% down payment.
From the email:
"Hey Jeff. The construction industry
depends on deposits being given to contractors. And has always been this way.
It is part of a trust process the contractor needs.
I build xxxx xxxxxxx xxxxxx and with
an estimate I require half down with the balance upon
completion. The reason is because if I get half I know I will get the
other half later. With every estimate, I send along a referrals list with about
30 names, phone numbers, addresses and emails attached and ask the prospective
customer to contact three from that list.
Say I do an estimate for you and the xxxxx is just over $xxxxxxx. The materials from Lowe's are going to cost around
60% of the estimate so the deposit I get from you doesn't even cover the
materials. I pay the difference. Myself and my crew do the work, which is
custom xxxxxx and custom xxxx. It is built to be a permeant fixture of your xxxx xxx xxxxxxxxx.
Basically, I put in my own money to
cover the balance of the materials and do the work without making any money
until I am completed. Then, I get paid.
Let's say you refuse to give me half
down. I agree to do the job. The xxxxxx are set in xxxxxxxxx. The
xxxx xx xxxxxx xxxx. The xxxxxxx are attached with xxxxxxxxxxxxx. I have paid
for helpers and labor plus my own time as the builder/craftsman.
Once we are done you don't pay me.
This goes on-and-on for some time me trying to collect. What do I do? Small
claims court? That works maybe years later. I still have some claims waiting
for collection in the late 1980's so I have been down that road.
Do I repossess the job? xxxx xxx xxxxxx, lose the xxxxxx costs, take off every xxxxxx which now has xxxxxxxxxxxx, dismantle the xxxxxxx which has been xxxxxx to fit this job but not
necessarily will fit the next, take apart the xxxxxxx which work perfectly, and
pay the extra labor for the disassemble plus my own time.
What did I gain? The experience that
in the future I will require half down or refuse to do the work.
The referrals will tell you that I
am a reputable person who will do good work and finish the job. I gave you a
list of almost three dozen past customers who you chose which ones to call, and
not a single one on that list is a relative of mine programmed to lie about
me.
People who use me, love me. Just
because other contractors are shysters does not bundle all of us into one
group.
If you have any questions, please do
not hesitate to call or email. Have a great week."
XXXXX XXXXXXX
XXXXXXXXXXXXXX, LLC
(850) XXX-XXXX
To me, it really boils down to personal responsibility and knowledge of the law.
ReplyDeleteIf I had a contract and had put 10% down and the contractor fails to pull permits and start work in the proper timeframe, there are steps in place by FL statutes for recourse. One could, in writing send a demand letter. If the contractor still doesn't comply, then the contractee can go file a criminal complaint with the local law enforcement.
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0400-0499/0489/Sections/0489.126.html
We remodeled an older home and basically acted as the contractor and hired many people to do different jobs, some did it differently. We first started with verbal estimates and then we typed up the contract ourselves and reached an agreement of how it was to be done. Both signed.
Not making excuses for these two in the spotlight but they may have gotten in over their heads and things snowballed, if they were subcontracting and prices went up,or people wouldn't do the work. They may know how to do the trade but the business sense wasn't there. Of course to take money and not do the work is wrong.It is theft
Some people probably just wanted the work done and sending the contractor to jail doesn't get that accomplished, nor do they get their money back.
The Attorney General also has info on their site.
https://myfloridalegal.com/pages.nsf/Main/7F03C51D308A4E9185257F77004BE16B
Its not without a sense of irony that Tim has publically stated four times to date that contractors as he understands it typically do not take any deposits at all... Or if they do, it is 10% or less... That you do the work, and then get paid. Yet Tim runs outside employment with his lucrative code2solutions business. Not only does Tim require deposits for this, typically $50.00, out of $200 to $250, [25%; 20%] but he directs the checks to be made payable to 'Tim Tolbert'. Why not the business name as listed with the Secretary of State? Why would he scoff at a contractor taking a deposit, when he himself requires non-refundable deposits? So while Tim continues the pathetic redwashing and astroturfing to fool you and the rest of the commissioners, not to mention the citizens and victims, time/resources/resolutions continue to go to waste. In all the years Tim has been in the building industry, one would think he'd have a basic grasp on a well-known concept...' What is the quickest way to get out of a hole? Stop digging..' I'd have no sympathy for him. IMHO - he does not deserve a pass here.
ReplyDeleteHere is the common sense reforms.
ReplyDeleteAgain, a homeowner is engaged with a contractor to get work done. It is between them. A big fat bureaucracy doesn't save someone from themselves.
A fool and his money soon go separate ways.
If a homeowner entered into an agreement and was not satisfied early on, they should have sent a certified demand letter, then if still not satisfied file a complaint with law enforcement.
A hot line can pass that info on to a caller but it is foolish to think otherwise. A County Commissioner, or State Senator has no power to enforce criminal misbehavior.
Anyone ranting is blowing hot air and venting and making a fool of themselves. Notice most those types are left leaning looney tunes thinking government is there to be their savior mommy daddy or something.
https://www.flgov.com/2020/06/30/governor-ron-desantis-signs-the-occupational-freedom-and-opportunity-act-to-remove-unnecessary-barriers-to-employment/
If these homes remain unrepaired, the home owner will start to face code fines as they become nuisance properties.
ReplyDeletePlease refer them to the state programs if they qualify, like SHIP and CDBG.
Time to get them repaired.
Meredith Reeves, again, knows about this.
I still think if people would have sent demand letters then filed timely police reports, it may have stopped these contractors sooner, however hard lessons learned, it's time to get these repaired for the good of the whole.
Restitution is most likely false hope.
The victims are already behind the eight ball and struggling. Plan B.
State housing initiatives and community block grants.
Eyes are opened about the plight of some of the local unhoused. It is multifaceted.
You have a staff familiar with neighborhoods.
Put them to work, then when they get it on the agenda, don't vote it down like you've been doing.
No one likes crime and projects but something has to happen.
FL489.126
ReplyDeleteI see the CCB agenda.
I see demand letters are being sent by certified mail, and if demands aren't met they will file a report with State Attn.
Some are doing it a year later.
They should have done it a year ago.
Under the law, nicknamed, the hard hat law, homeowners had this recourse.
It really was/is between the contactor and contractee. These would have piled up sooner if people had taken immediate action UNDER.THE LAW. We are a republic. You don't even need a lawyer. See a letter certified mail, look,up the law. Everyone has access to internet. Use it.
Hard to feel sorry for people crying about losing 40K then giving up running to WEAR crying.
People need to be taught to be responsible.
I don't know these contractor's zproblem but they apparently saw easy marks and kept getting away with it. Of course they will probably go to jail and these people won't get refunded.
If the first one or two had taken immediate action, it would have stopped sooner. They may have been able to sue and recover --- but 4 million $$$$ or so piled up????
GOOD GRIEF.
How many walked around with HUHA?