Contractor bids low and increases price without approval from homeowner
My wife and I hired a contractor to do the upfitting for a business in a strip mall. After looking at his bid we decided to go with him since he had been involved in building other restaurants such as ours. We were to pay him 25k per a stipulated sum agreement and then pay the subs directly. Our first problem started when he misread what the landlord will provide and left out a 40k HVAC unit and duct work on his bid. There was no change order signed and we had to get an increase on our SBA loan. All in All the job cost us 80k more then his bid with NO change orders signed or alterations in the contract. He has already admitted to stealing from another business owner due to double billing. We have found out the he is President of this company and it is licensed however he was overseeing the project and he is not a qualifying party to oversee the project considering he has not passed nor taking the state exam to oversee a project. in the mean time he states that we still owe him money even though we paid 80k more with no change orders. The SBA and us did ask for a breakdown of all invoices which he impolitely refused. He has placed a lien for another 42k and we do have an attorney. Our problem is he NEVER provided any labor or materials. Is there a something that protects the consumer from a contractor the bids low and then increases the price without approval and then invoices you and says you don’t question just pay? We have paid ALL the subs and know the Electrician who is the HVAC as well sub and plumber are into his scheme.
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