When it comes to contractor delays and surpluses, there is a fine line. A 10-20% delay or project cost overrun is normal even with “good” contractors, but a 50-100 per cent delay or cost overrun is not. The demand for contractors is much higher than the current supply, so the ones that are still available are not always the most professional or punctual. This doesn't mean that they have no responsibility for arriving late, though.
Most construction contracts do not address the issue of late completion damages, in which case common law will generally apply. This would allow the customer to recover their foreseeable expenses and loss of profits as a result of space deprivation. Types of damage that a typical customer may suffer include rent withheld in the old space, or short-term rent with a much higher rental rate; charges for storing furniture; cancellation fees or non-refundable expenses associated with moving; and additional expenses for architect, engineer and owner representation expenses. If the work has been delayed so far that the original deadline is impossible to meet, there is no point in trying to force your contractor to meet that milestone. It's better to move the goals to give your contractor room to breathe and modify the original contract to ensure that you still have maximum options in case things go wrong. You may suspect you have a problem when the subcontractors that appear do not reflect the quality of the contractor you hired.
If the team being presented is not properly equipped or seems to be struggling with work in one way or another, then it's time to stop and hold a meeting with the contractor to get back on track. Redoing a bad job is more expensive than doing it right the first time. If you suspect that your work is pawning on a lower quality subcontractor, that's an immediate warning sign. Other warning signs of a bad contractor include too many workers rushing to meet a deadline or simply giving up, and contractors putting too much effort into working. If you contact a contractor by phone or in person, it is recommended that you write down a brief overview of the conversation immediately afterwards. If your contractor doesn't show up when they're supposed to or causes unnecessary delays, it's best for you to defer the remaining payments until you make an effort to speed up the project.
Ask people doing practical work how things are going, and if you find out that they are not being paid or that they are extremely unhappy, it's a warning sign that your contractor is having problems with cash flow. The structure of pay points will affect how your contractor thinks about your work, just as you probably think about the amount of money you want to set aside for various life milestones. It's important to work with a good and credible contractor to ensure the success of your real estate project. Even making mistakes and learning each lesson the hard way takes less time than chasing and waiting for contractors. If your contractor remains unpaid, the application of the lien will result in foreclosure of the property and the proceeds of the sale will be used to repay the debt.
