[schun67]

I am getting a feeling that I am in a middle of some kind of a ponce scheme. I signed a contract with what appears to be a large company advertised on line and based on the # of jobs that this company appears to be doing. However, it is very clear that the owner of the company is NOT the one whose license is associated with the company.

What we found out about the company is that they have sales people, about 7 of them, that call themselves project managers. They have what they call foreman, but it turns out that these foreman are licensed contractors who normally would act like a subcontractor, except for the fact that they do only verbal subcontract and gets paid by the company intermittently. This virtual 'subcontractor' proceeds to pull the permit, orders cement, etc. under his name. The company proceeds to do everything they can to be ahead approx. $15-$20,000 from the owners. Potentially, if they take off, the owner is potentially left with cost of cement, portable potty, etc.

The check is written to the company's name and based on what the 'subcontractor' tells us that he can't work anymore because the company is not paying him. The project manager, whom we signed the contract with, keeps telling us, workers will be there tomorrow, tomorrow, etc... but the workers do not show up. But technically, the project manager has no liability if things go wrong... the project manager does not seem to have ordered any windows, or tiles...

I am confused and nervous. Please advise. I am already $15-20K overpaid and feel very stuck and at the mercy of this scheme.

[manhattan42]

Call your attorney and have him review the contract.

Then have him research the company.

Or call your local office of your State Attorney General office and voice your concerns to them. This will cost you nothing and the State AG will go to bat for you at no cost. The State AG also has the legal power to force the company to comply with the law.

Most states now regulate just how much a contractor can receive as a deposit or draw for work, and most state laws require that amount to be no more than 10% of the project cost at any given time.

If you have financed the job through a lender, the lender usually will not release any money until work in excess of the amount requested has been done... putting the contractor behind financially at all points.

Personal attorney, state Attorney General, and your lender are those to talk to immediately.

[speedball1]

Check out the complaints with The Better Business Bureau. Is it too late to stop payment on the check? Divorce yourself from 5this company as soon as possible, Good luck, Tom

[schun67]

Thank you very much to you both. I will definitely follow up on your recommendations.