My Contractor Ruined my House
Contractor Problems
Contractors in Ontario cause a wide range of problems in the residential and commercial construction sectors, spanning from poor workmanship and financial fraud to safety violations and project delays. These issues are frequently heard in the courts of Ontario, including the Small Claims Court.
Thankfully contractor problems are rare, however they can be both damaging and hurtful should they occur, the reason why you need legal support when things do go wrong.
Project Abandonment and Financial Fraud
The first major issue concerns contractors who take large deposits then either abandon the project, or never start. They leave homeowners with unfinished work, jobs that need to be restarted and worse financial losses. One case Invictus had concerned a contractor who started the job, dug up the path then left with a massive hole in the ground. The homeowners assumed they would have a minor inconvenience for the long weekend, but they never say the contractor again, despite phone calls of an increasing desperate nature.
Many contractors pressure homeowners into paying more than 50% upfront, often for "materials," and fail to return, leaving the homeowner scammed. Identifying the cost of material and purchasing your own can reduce the risk, yet some jobs are inherently costly to start. Avoid paying excessive deposits, typically asking for more than 15% is a clear sign that you may have a problem contractor.
Another problem is overcharging and adding hidden costs later in the project. Many contractors inflate costs because they believe the homeowner to be uneducated about the work they do. Some engage in deceptive invoicing, or create fake "emergencies" to charge more than the original estimate. The word from reliable contractors is that the homeowner should allow a 20% variance in costs, so if the expected price is $10,000, you should budger for $12,000.
Delays and Poor Management
Many homeowners have no experience managing projects like construction, which is why they prefer to use a contractor. They make the assumption the contractor has said skills. Inefficient project management often leads to significant delays, extending renovations for weeks and months beyond the agreed deadline. The other net impact is rising costs.
Many contractors need subcontractors, for example lay pipes or cables under propose but it is their responsibility to check their credentials. The main contractors is responsible to coordinate and manage their subcontractors properly. In R. v. Greater Sudbury (City), 2023 SCC 28 (CanLII) the Supreme Court of Canada concluded that the contractor has obligations to homeowners and members of the public for the work of subcontractors and general safety. Conflicts in scheduling and unprofessional work are the responsibily of the main contractor hired to perform the job.
Defective Workmanship and Code Violations
Ontario has Building and Fire Codes for good reason. Many jobs that are performed do require permits. The homeowner is responsible for obtaining permits, although many contractors have experience getting permits and have contacts at the local city. That can assist any project. Consider that failure to follow Ontario Building Code standards, can lead to structural integrity issues, water infiltration, and mold growth after the project is complete.
Defenctive workmanship comes about because some contractors use unskilled labor or skip steps to keep the costs down or make extra profit, sadly the result is often sloppy work. Examples include: improper electrical work, poor drywall installation, or faulty flooring. Use inferior or improper building materials to cut costs
Contract or Legal Disputes?
Contractors may refuse to use formal written contracts, or use poorly drafted ones, which may cause disputes over the scope of work. Additionally some subcontractors and suppliers have the option to put contractor's lien on a home if the general contractor fails to pay them, even if the homeowner has paid the general contractor.
Holes as a result of bad workmanship can impact the homeowner, neighbours and members of the public. The contractor has a duty to both the homeowner and the public at large. Collapsing walkways or driveways as a result of the bad workmanship are the fault of the contractor, you need to protect your legal rights.
Invictus Legal LLP can help, please call us.
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