We hired a contractor to renovate an office for our business. He didn't pay his subcontractors and they stopped work after we paid the first two payments. Per contract, the last payment is due upon completion. The work isn't done, he's now fighting that he wants more money upfront to continue. He has threatened his subcontractors if they talk to us, and threatens to sue us if we don't pay him more. He recently went on a trip, didn't say where or for how long, and didn't respond to any calls etc. from us. We had to get someone else, after checking with the city, to finish the job as we have only 2 weeks to finish.
Now that work is mostly done, the guy came to our building today, says he never read his emails or texts from us, and is telling us he's going to the city tomorrow and filing something to "Shut down" any further work at that place.
We just have cleanup and some cosmetic stuff basically, but our attorney said we could get someone to finish the job, didn't mention anything about this guy being able to stop work at that site? Can he do this?
In most cases when you have an absent GC that doesn't pay the men and takes the job money for his own personal gain that is called misappropriation of funds if he threatens you to pay more money then whats stated on your contract that is called extortion, both are illegal. If the permits are in his name, he can stop work. If the permits are not in his name, kick him out and tell him he's trespassing if he comes back and you'll have him arrested. The subcontracters agreements are with him not you, he basicly owns them and its his sole responsibility to pay them NOT you. If you terminate his contract you can then hire the subcontractors directly if they are willing to work with you but this is rare being they will lose the connection from their GC for other future work. You need to file with the town for a release of the GC for abandonment, and put the permits in your name, that's the only way to keep things moving. If he pulled the permits...he owns the job. Good Luck!
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