Contract suggestions

My dad signed a contract with a construction company several weeks ago to have his roof replaced and some other related repairs. Half the total was paid as deposit. The company folded due to odd circumstances, but the owner is promising to make good on those contracts he'd already accepted money on. He will be doing business under a new company name, and will be working under the license and insurance coverage of another company, so we are told. Can anyone here give any suggestions on wording that should be added to the new contract to protect my dad further. He is going to give this guy another chance, otherwise he'd surely be out $5K, this way he might be out $5K. Can wording be added suggesting a timeline for start and finish that would affect the total cost, like a penalty for delays, or is that a no-no? Anything else? My dad has asked that I be present at the new contract set up and signing, as witness and to ask any questions that might not occur to him. The new contract is to be signed this Monday morning. Thanks for any suggestions.
-- Melissa remove (yourshoes) to reply by email
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Melissa,
If the old company folded and I'm assuming they have no assets that your father could go after, then a new contract is in order. I'd surely investigate this new company and make sure their insurance is in order.
The new contract should state the total price and what deposits will be made and what amount will be withheld. The contract should require proof of insurance and yes, a finish date can certainally be included but take into account mother nature. If your town does not have a code inspecter I would suggest hiring an expert to sign off on the completed job before you pay off the contract. The contract should also include any warranties for the repairs. Please remember that if it isn't in writing, then it can't be enforced by the courts.
Melissa wrote:

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In alt.home.repair on Sun, 27 Feb 2005 04:59:10 GMT "Melissa"

I guess the roofer is willing to sign a new contract in order to assure his getting the other 5K at the end, but I really don't understand why the contract you two already signed isn't good enough for him,**
** and maybe for you. I would be surprised if he binds his new company name or the "another company" beyond the minimum. Maybe he's going to want you to pay more because the "another company" has to get a cut. Indeed, it probably does deserve one, and he may not want to pay it out of his 10K, some or much of which will go to pay for materials and to pay the crew.
OTOH, there are a lot of honest people in this world, and maybe he only wants the new contract to make sure you pay the remaining 5K. The mere fact that I think the first contract is adequate doesn't mean he does or that his lawyer does.
There is a legal group, but the good one is moderated, (misc.legal.moderated), and I don't know if you have time to post a question and get an answer
Meirman -- If emailing, please let me know whether or not you are posting the same letter. Change domain to erols.com, if necessary.
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What new contract? I'd just hope the guy shows up and has material delivered. Right now he has dad's money and you have a piece of paper with useless printing on it. A new piece of paper is not going to be worth anything more.
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I have heard of people like that, he may have no intention of doing the work and never did. 50% down is an amount that leaves me suspicious of his intent. Was he the cheapest and that is why you signed. If you paid by credit card you can dispute the charges, but you probably paid by check and it is to late to stop payment. Go to your local courthouse and see if he has other cases against him, talk to you city lisencing and see if he ever had a lisence and if he has one now. You may be out the 5000 and need to go to court to "try" to collect. Do you know where he lives, see if he owns or rents. You have a contract now but get him to sign another one ane get proof of insurance-call the insurance co your self and see if he is on the policy. Get a completion date.
wwwfreeadvise.com is a legal site that will help.
Your local DA will have free advise for you and on him if he is a crook.
Is his name B Henderson?
If he signs a new contract get a completion date, demand it is started now, see what he says. Get proof of insurance then start checking hm out. And never give 50 % down or any money till the job starts-next time. Maybe he is honest but ive been ripped of by cons so I would be worried.
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Like Edwin said, you have one worthless piece of paper already. Forget about words on paper, let the man show his"good intent" by delivering some material and installing it. Since he's proven he can't be trusted,have him work off what your Dad's already paid then go from there. years ago I was involved with someone who sounds like this guy. In my foolish trusting of him I managed to turn a $1000 loss into $3000. Be careful
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On Sun, 27 Feb 2005 04:59:10 GMT, "Melissa"

I'd suggest that dad move the contract signing to his lawyer's office. Not to say that this is what happened in your case, but fly-by-night contractors often leave a trail of dissolved business entities in their wake to escape liability.
Steve Manes Brooklyn, NY http://www.magpie.com/house/bbs
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Melissa wrote:

Better a non-relative as a witness. Notaries make good witnesses.
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get a lawyer
though you never said he was conducting business through a corporation, some of the other posters in this thread assumed he was conducting usiness as a corporation (even the one smart enough to steer you towards a lawyer), showing how easy mistakes can be created about contract issues
again, get a lawyer

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And make sure that that the contractor actually pays for the materials that get delivered. Otherwise, the roofing materials supplier can put a mechanics lien on your dad's house.
You might find these web sites (and their links)helpful: http://www.cslb.ca.gov/services/guides.asp http://www.oag.state.ny.us/consumer/tips/home_improvement_fact_sheet.html http://www.lawdepot.com/contracts/serviceagree/?&pid=ld-serviceagree_-contractor
Edwin Pawlowski wrote:

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And this time, if he goes belly up, you have a useless piece of paper that was approved by a lawyer. What you need is some materials delivered and paid for by the contractor to make good on the $$$ he already took.
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Thank you to everyone for your replies. The contractor did not show up for the new meeting. This was not a surprise, but still disappointing. My dad is persuing legal means now, while not really expecting any success. I appreciate your taking the time to make suggestions.
-- Melissa Please remove (yourshoes) to reply by email
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