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Protect Your Rights If A Construction Contractor Cheats Your Business

February 18, 2025

Posted in Uncategorized

If your business needs a physical location, you must lease or buy it. If you own the property, you may have had it built, and you must maintain it. Unless you do this work yourself, you must rely on outside contractors. Not all of them are competent and honest. You may fall victim to a company that takes your money and does substandard work or none at all.

States regulate this industry to varying degrees. Some offer substantial protections to customers, while others may leave them to fend for themselves. Before starting a significant project, contact your attorney and discuss ways to ensure the work gets done as promised and, if not, how you can recoup your losses.

You and your contractor should sign a contract for the work that protects your interests and includes steps to ensure the job is done correctly.

Substandard Work Can Wreak Havoc To A Building And Its Owners

VTDigger tells the story of a construction firm (Vermont Construction Company) with several pending lawsuits and counterclaims against it by customers claiming they didn’t get what they paid for. They also paid additional money to other contractors to fix the problems they caused.

These are all residential properties, but your business could also be the victim of these alleged practices. The allegations against the company include:

  • A family hired the company to install a new structural beam in the basement to hold up their second floor, reframe a second-story addition, and install a bay window replacement. Several months later, they discovered problems with the work. A structural engineer reported the beam was assembled incorrectly and didn’t meet industry standards for strength and stiffness. There was wood decay and deterioration in an exterior wall. The company didn’t warn their customer about it, they just attached new materials to it, so the house’s support system for the new construction is questionable. The engineer found the company performed work that was “poorly executed, sub-standard, and out of sync with normal construction standards in use today.”
  • Other homeowners hired the company to work on their roof. They allege the company made false claims about the work they did and the justification for additional charges, violating state home improvement fraud and consumer protection laws
  • Property owners hired the company to replace a roof and install skylights. The skylights leaked, and the company allegedly didn’t take responsibility. A subsequent contractor found the work defective, shingles improperly installed, and the skylights weren’t installed to the manufacturer’s specifications
  • Another former customer alleges the company violated the state’s consumer fraud act. The original estimate for the work was $53,845. The company eventually billed her $140,341, and she paid $98,427. She accuses the company of misrepresenting the expected cost to entice her to hire them. After starting the work, they added to its scope and increased the costs

When there’s a major construction, renovation, or maintenance project for your building, you must be proactive and engaged. Ask questions, and if something doesn’t seem right, raise objections. If the project is costly enough, you may want to hire an outside engineer to ensure the work is being done correctly. Our Irvine, CA business litigation lawyer is part of your team, ensuring the contractor is living up to its obligations, and you’re not being taken advantage of. Contact us today at Focus Law LA to get the legal guidance you need for your business.