ComplaintsforKurtts Construction, Inc.

• Initial Complaint

  08/12/2024

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  We entered into a contract with Kurtts after receiving financing with a different contractor who walked away from the job. Our bank was concerned that they didn't have a line of credit to float costs and would not approve the cost-plus contract they wanted to use. Kurtts ended up offering a fixed cost contract with the understanding that our financing was less than their contract, because their price was higher than the first. They also agreed and signed the bank's draw schedule. ******* initiated contact with the bank and a few months later, the loan officer called to tell me ******* yelled at him because the amount they were being paid based on the draw schedule was less than they paid for certain items. ******* also discovered his secretary hadn't marked a $35K invoice as paid, so it appeared they had not been compensated that amount. He then delayed the job for months stating the painter he hired did not have adequate insurance and refused to hire another. He attributed other significant delays to gastrointestinal issues and an injury his ex-wife suffered, leaving him responsible for his children. We found out later from the ***************************** had told him we were not paying him and that was why he couldn't work. They made the decision that they were no longer agreeable to the unconventional financing or the draw schedule, and did not produce a final *** we owed to exit the contract for a month. They also charged $5K because they said we were terminating out of convenience. They also wanted us to pay their **** $500 to draft a termination letter. Once they provided the final amount owed we realized they charged their 18.5% fee on the permit that was transferred as well as items we paid for out of pocket and the plumbing my husband did himself. ******* and ****** screamed at me telling me it was all my fault. The contract was terminated approx 20 days before their contract expired. We were left with an unfinished house we had to complete ourselves.

  Business response

  08/16/2024

  We entered into a contract with our clients, NOT their Bank.Their loan amount or how the bank disburses draws is truly irrelevant.  We promised to build the house for X dollars and they promised to pay that amount by signing.  The first 3 monthly pay requests werent paid in full. The bank paid their percentage based on the draw schedule and the homeowners are to pay the rest. Since the homeowner(he),  was our plumber for our other projects, we cash-flowed the unpaid balances as a courtesy, until the amount became too large and risky to do so. Their banker said, in which things got heated, that funds were being dispersed based on the previous builders costs, not ours. The signed draw schedule included OUR contract price.
   Rough plumbing by the homeowner, took nearly 12 weeks to finish because he was behind on jobs with his customers. Our jobs included. This delayed the inspection process, and moving forward overall. Medical or personal matters with our staff had nothing to do with delays. Our communication with the homeowner(he) occurred almost daily. He was not informing his wife on progress or the short payments. Voices were escalated in a conference call, when she insulted our project manager, and the owner of the company, which are father and son.
  Our painter began working on the outside only. The homeowner changed colors a few times without our knowledge, delaying his schedule. By contract, the homeowner is not allowed to direct our subs. This happened many times. The painter left the project temporarily for family reasons, but got into some legal trouble and was locked up. NO delays were caused by the painter. The inside wasnt even ready for drywall. Note the reason of the plumbing mentioned above. Drywall finally commenced, but the Contract Termination soon followed.  Only 2 paint draws were submitted and we paid promptly. We heard the painter returned to finish and requested money he was owed directly from them now, since he went *** on us.
  We have no record of submitting a specific invoice for $35k, so not sure where that came from. We could not continue working because they could not or would not guarantee full payments going forward. Therefore, after consulting their attorney, the homeowner(he), told us they were Terminating for Convenience. The contract stipulates a $5k termination fee and payment of legal fees. We finalized matters with subcontractors, suppliers, and our attorney as quickly as possible before producing a final bill. We have record that no fee was added to the permit amount, nor were they charged for the permit.
  Kurtts Construction has been building custom homes for ******************************************** ******************************************* and more. We are a reputable award winning, GBAHB Hall of Fame Builder. We keep extensive records of all projects to verify our claims. We use fully insured subs and we carry a full General Liability/Workers Comp policy to insure our subs are covered. We do not appreciate our staff being mentioned by name and we reject all of our former clients distorted and false claims. This review should be removed from our profile!

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