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My 7000 dollar mistake
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K
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31 Oct ’15 - 10:30 am
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Reading Icanreachit's cement contractor issues reminded of a time when I messed up big and it cost me a ton of money. I know a lot of people are planning different building projects in the next couple years, the biggest piece of advice I can give with dealing with contractors, engineers or architects is to get everything in writing.

Costs for changes in plans.

Mediating issues.

Payment schedule.

Fee schedule.

Etc.

When we first opened our business we had only 30 seats and it took off immediately, we had lines out the door every night 20-40 people deep. Business was good.

But it was more of a job for the first couple years because we were so small that my wife and I had to be there every single moment because we couldn't afford to hire anyone to help run the place.

So after working 7 days a week from 6 am to 9 pm for two years straight we decided we needed to get bigger.

Luckily at that point the house next door hit the market and my wife and I decided to buy it, tear it down and do a small addition, nothing crazy, just another 20-30 seats that would be big enough to offset the wage to pay someone to help run it. We weren't concerned with the addition failing because we were so busy with our 30 seats that we were losing a ton of revenue. I could look out the front window every night and see several dozen cars slow down and look in to see how busy we were and just speed up and drive away. We figured if we could capture the revenue we were losing it made sense.

So we had a regular guest who was a contractor that we started talking to about building the addition for us, the idea was to tear down the home, frame out the addition, get it totally finished with electrical, insulation, drywall, etc and get to the point where we couldn't do anymore. Once there we would close down for two weeks, cut through the wall and finish the addition off.

So we bought the house, and started planning the time frame when the contractor said, you know, instead of doing addition, why don't we just build a whole new building and tear down the existing. It doesn't make sense to add on to a 70 year old structure that you will just have maintenance issues with in the future. My wife and I thought about it and decided it made sense.

So he brought in one of his friends who is an engineer/architect to do some drawings for the town planning board. He said it would cost about 2500 dollars to do the drawings, that wouldn't be stamped but they would be enough to get approval with.

We agreed and started talking about what we wanted in the new building, a couple weeks later he brings in a set of plans, by this time I had heard from the plumber and electrician and some changes needed to be made, so I called the engineer and told him. A week later he drops off another set of plans.

By this time I hear back from the fire marshall and since the kitchen was going to be in the basement we needed a full sprinkler system, so I called the engineer back and explained it and a week later he drops off another set of plans and a bill for 3300 dollars. The plans were fine, I had no issue paying the difference, I expected it since we made changes a couple times.

Well the following week I start getting bills in from all the subs and tallying what this new building was going to cost and it came in right over 450,000. To add the addition and wrap the current commercial note and the mortgage for the house we bought was just around 250,000. My wife and I decided to go with our original plan of just doing the addition, I was more comfortable supporting the lesser amount of debt.

So we tear down the house and they start framing out the addition when one day I get a letter from the engineering company, there was an invoice for 3800 dollars in it. I was confused so I called them and inquired if there was an issue with the bill that I had already payed. No they said, this is the balance that is owed.

You ever hear how when someone get's so angry they lose all sense of reality? That's basically what happened, my vision went blank, I lost all sense of hearing. My wife was standing in front of me as I was talking on the phone and she appeared to be covered in fog and I couldn't hear what she was saying.

I walked into my office, grabbed the checkbook and drove to the engineering company. When I walked in the secretary asked if she could help me, I replied I need to pay the balance of my account. She looked at the invoice and looked at me and said sir, you seem upset, let me get someone to talk to you about this.

No, I replied, that would not be a good thing, let me just pay my bill and leave.

When I got back to the store I walked over to the contractor and unloaded on him, he knew it was coming. I told him in no uncertain terms that the next time one of his friends screws me they should at least me give me some lube as a courtesy.

I'm sorry he said, but these things happen.

Bullshit, I screamed, someone should have called me at some point and give me a heads up that the costs were going out of control for these plans and I would have pulled the plug right then and there.

So now I have a 7000 dollar set of plans for a building that I will never build.

Moral of the story, get everything in writing, have a good vision and knowledge of what you want to do before you get started and make sure the lines of communication stay open between you and anyone you hire professionally.

For the record I have never used either of these two again.

The following users say thank you to K for this useful post:

easytapper, icanreachit
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dunc
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31 Oct ’15 - 2:47 pm
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I used to be a general building contractor and I can't tell you the amount of jobs I lost by being extremely thorough in my contracts explaining every payment  and extras that could arise.  Almost all of the jobs I lost, I ended up hearing back from the customers about how my bid would have been less in the long run.

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Gravel Road
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31 Oct ’15 - 3:17 pm
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I hear what you are saying.  Even in small Towns things can be a disaster.  We are fortunate with some key people in our build...the architect and excavator so far...hand shake deals and fair charges. They both came well recommended by people we know.  Sometimes I have been to trusting that a person's word means something and gotten burned.  There still are good people but it is hard to trust too many when your talking prices that end in lot's of zero's.

"The universe is wider than our views of it." -HDT
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K
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1 Nov ’15 - 9:52 am
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Yeah, we are actually in a small town of 2500 people ad the two gentleman were well known to me for a couple of years, the contractor put on a good story, but that was about it. Several months later I got a phonecall from the concrete sub asking me if I knew how to get in contact with the GC, I asked why, what's going on. Well I haven't been paid yet so I am going to put a mechanic's lien on your building.

Like hell you are, he was paid 6 months ago. 

Yeah, but I can't reach him and the work was done on your building.

Don't worry I said, I will see him tonight since he is my daughter's basketball coach and she has a game tonight.

So I confronted the GC about the issue before the game and he apologized and said he would get it resolved. I said it better, you got paid in full so you better pay the subs you hired.

He started giving me a sob story, this was happening 2007-2008 during the crash and he said he got caught with his pants down. Basically he was siphoning money off current projects to pay off the previous ones, when construction dried up he screwed everyone.

It's was finally resolved though.

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