Steve Payne
"Greedy scumbag thieves and incompetent financial disasters"
Canadian Contractor Financial risk"Sub trades involved in the project should be paid directly by the financial entity."
Another reply to Koci’s column on placing his first lien. From I.C. Clearly Now. (Nice screen name, btw.)
“Sub-contractors get used abused every day, and they get stiffed. They compete to be the cheapest bid only to end up in a high risk, high stress situation. Developers fall into two categories. Greedy scumbag thieves, and incompetent financial disasters. The solution is simple and easy. All projects should have to be submitted for review before financing or permits are given. The sub trades named in the project should be paid directly by the financial entity. The project should be overseen by an engineering firm who signs off on the sub trades. The developer only gets paid from what is left over and is last in line. This would stop projects going ahead that have no funding, or that are not capable of reaching conclusion. It would stop developers using sub trades as money lenders and unwilling financiers. I remember my first encounter with a sleazebag developer. He funneled money from one project to start another. He stiffed tradesmen on the first two projects and was 1/2 into his third project. Liens were placed. Every asset the developer had was in his wife’s name. The tradesmen got nothing but court costs and a ruling that said the developer was to pay them. The developer declared bankruptcy on his company and laughed in the faces of the tradesmen. He started a new company (under a third party’s name) and was working the next week ready to play the game again. The solution is easy. What is the government doing to solve the problem? Nothing. Time for some cowboy justice.”
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guys the one mentioned above are plentiful, and what they do under any other circumstances is considered a crime and is punishable by jail, but if you look at their knees,,, the bigger ones,, they are dirty from blowing the politicians to keep them from changing the laws.
the laws must change and lets start with nothing less than a 1 year jail term per count (accumulative) and a full payment order which means seizure of all properties that the work has occurred on no matter who owns them, yes even from a new home owner this will make people leary of who they hire to build, and keep a close eye on what id happening with the money they are spending.
after the second conviction a lifetime nation wide ban from employment or association in this field.
oh yes and confiscation of wealth and garnishment of future pay untill all debts are settled, with no bankruptcy protection
Very well said IC. This still happens all the time. The Developers/GC’s still work off the little guys money while the job is in progress and find all the reasons why the can keep or delay payment. I have gone away from bidding new construction to anyone but small trusted GC’s. If enough of us do it the large firms will be left with each other and their costs will rise through the roof on most projects. Then they and their unions can cry about why projects do not go ahead!
I would hope that there are more than the two categories of developer you outline. I have been in construction since 1993 and have paid all of my subcontractors for their work. I could tell you horror stories of subcontractors either not completing the work, or doing a horrible job, then liening our projects, forcing us to settle and pay legal fees. Then pay to get the work completed, or redone. There are bad developers/building companies, and bad subtrades too. I would hate to have the banks involved, as you would be getting individuals who have no clue about construction making payment decisions. They have a role, but it is not paying subtrades. Just be careful who you work for. There are great builders out there who are honest.
Dwight you mention just be careful who you work for
that is impossible-you NEVER know who is going to get you
its home owners,generals,other subs
just treat every one fair and do your job
after 22 years we have been burnt-and likely will again
but most people are 100%
I’ve only lean 1 job and that just cost me more paper work and more money out of my pocket-I should have taken that extra time and money and gone out for a nice meal or 2 with my family