Home reno co. bankruptcy ripoffs Calgarians including Brendan Morrison

[Locke]

Originally Posted by Azure

Well that is not industry standard at all.

Major renos with off the shelf components might equal paying nothing in advance, but if you go for any kind of custom work, chances are you have to pay half in advance.

It was all custom work. Nothing off the shelf.

[SportsJunky]

Originally Posted by Locke

Really? I've only had renos done once but they were fairly major and I didnt pay a dime in advance.

Must have been your trustworthy appearance.

[Locke]

Originally Posted by SportsJunky

Must have been your trustworthy appearance.

We all know thats not true.

[calgarywinning]

Paying a 50% deposit is just that. You are giving half your price up front with nothing in return. Never do this.

If a custom order requires a deposit and it's through a material provide, then have a contract in place, see the invoice and make sure you are the owner of the goods in question. Only then consider a deposit, but it's just at heavy risk money.

I also agree with Realtor1 on the shabby developers.

[Azure]

Obviously a contract will be signed between us and the client. We don't get much haggling around over the 50% deposit. Problem is usually get the remaining money within 30 days of the job being completed.

A smart customer will initiate payment terms after the original agreement. Most companies hate haggling around over money, so if you offer them progress payments as the work gets done, that gives them the incentive of finishing the work and they see some cash flow to help pay bills.

Of course, that depends on if your contractor isn't out to rip you off.

[DownhillGoat]

Originally Posted by Locke

Really? I've only had renos done once but they were fairly major and I didnt pay a dime in advance.

Same here. Had my basement done a few years ago and it was invoiced in installments. First was fairly soon in, but there was no initial deposit.

[I-Hate-Hulse]

Surety Bonding is something to look for if you're doing a major project. Reputable Contractors should have no problem having their surety agent post a bond in their name. If it goes sideways, and you have a contract in place - you should be able to collect from the surety agent.

[rotten42]

I've done two renos. I've never given more than a 15% deposit upfront. I've then sat down with the contractor and set out a schedule for the release of more funds with the expectation of what work is completed before the next stage. If they want their money they have to show progress.

[Bill Bumface]

Our guys give us the actual invoices they have received for labor, materials and sub-trades.

I actually really like their system for billing. Most places seemed to try hide what they were actually paying for subs. These guys gave us copies of every single quote, and in some cases where the quote looked high, they quoted again with a different sub to try get the price down. Everything is an 18% management fee.

When the invoice comes in, they show where on the estimate it was, and what the actual amount is. It's very easy for us to see as we go how we are doing versus our estimate.

Cash flow wise, they do fine. As they buy materials, they are getting payment from us within a day or two of their invoice.

[squiggs96]

Originally Posted by Azure

Except the company requires some kind of payment to fund the project on their end. I realize if you have good cash flow that shouldn't be an issue, but that isn't always the case.

I do like the idea though, and we have done it at times with good success.

It shouldn't be the customer's problem that the company needs the money in order to fund the project. As a customer I'd like to deal with a company that has been successful long enough that they have a few months of cash built up that they can start the project. If they don't, then I think there is a higher probability of problems arising. If you are a company that needs my money just to start my job, I'm guessing you are behind on other bills, and this will continue to be a downward spiral.

I'm in the process of having my house built. There is zero chance I'd put 50% down before seeing any work. 10% I'm fine with, and then I'll pay upon milestones being achieved.

[flamefan74]

Originally Posted by calgarygeologist

As a customer I would probably prefer to have the funds kept in an independent trust account so that if there are issues with the company I could get my money back easily and also the company doesn't have to worry about payment at the end of the project.

I was thinking the same thing. Why not just put the money in an escrow account and money gets paid out as the project gets completed. I would think this would cover both party's, no?

[Nufy]

I had a bathroom shower built this past summer.

The contractor wanted 50% up front as well. Remainder on completion.

In contrast I have a window guy who has done all the windows /doors in my last two houses and doesn't require a deposit at all.

[Locke]

Originally Posted by Nufy

I had a bathroom shower built this past summer.

The contractor wanted 50% up front as well. Remainder on completion.

In contrast I have a window guy who has done all the windows /doors in my last two houses and doesn't require a deposit at all.

See, something like that I can understand. They're doing one job thats fairly straightforward.

I had a fairly huge reno done and I paid in installments as work progressed. Not a dime in advance but as work was completed I paid for it.

[Flamenspiel]

Would the CC company not protect you in case the work has not been done or completed? Just looking at a window project right now and all the D&W shops take credit cards. I gather if its a total fraud there would be no recourse but in case of services not rendered you could probably do a charge back.

[Bill Bumface]

For major renos you are up past 6 figures and they will not take cards, as that would hit their bottom line by several percent.

[calgarywinning]

I just also wanted to remind people that you must withhold 10% of the total invoice for 30 days in order to protect yourself, the homeowner, under the building liens act.

You can be at risk if you do not do this, even if you have paid the invoice in full.

[chemgear]

http://calgaryherald.com/news/local-...aud-conviction

Consumer protection authorities have launched a formal investigation against bankrupt Calgary contractor Bruce Hopkins, who was convicted of fraud 10 years ago in connection with an unfinished home renovation.
More than 20 homeowners have complained to Service Alberta since H

Hopkins put his company, The Remodelers, into bankruptcy in October, alleging he collected a total of $3 million from them for unfinished renovations or projects that were never started.

Since learning of Hopkins’ criminal conviction during a recent creditors’ meeting, the Mravunacs and other homeowners in the group want to know how he was able to obtain a special prepaid contractor licence in light of the prior fraud.

Reached Friday, Hopkins said he was addicted to drugs in the late 1990s until entering treatment in 2000 — and that his drug use was behind his conviction for fraud over $5,000.

The conviction stems from a renovation a Calgary couple hired Hopkins to do on their Ranchlands home sometime in late 1999 or early 2000, according to court documents obtained by the Herald.

Hopkins never finished the job and never returned a car that the couple had given him as a deposit on the job, instead selling the vehicle for drug money.

[Hack&Lube]

Rise from your grave!

http://calgaryherald.com/news/local-...ir-trading-act

[AcGold]

My girlfriends parents used these guys on a year long reno that was supposed to be 4 months, absolute ####ing nightmare. Put a strain on her parents relationship and ours. Overcharged by %300, wonder if their court case will still happen now that they filed bankruptcy.

[PaperBagger'14]

My payment structure has always been 10% up front, 65% upon rough in completion and 25% for final delivery. People have always seemed to take pretty well to it and that 10% is usually enough to cover my costs for rough in. 50% up front is asinine.