ComplaintsforBroadleaf Residential

• Initial Complaint

  02/26/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Almost 2 years ago, I contracted with ***** ***** (also recently known now as Broadleaf Residential) to build my home. They verbally told me the house would be built in 12 months. The written contract states that the house would be completed within "510 days following commencement of construction." They are now more than 105 days over this maximum allotted, contractual obligation. This delay continues to cost me thousands of dollars each month in rent, not to mention the intense and undue stress it has cost me personally. I have asked repeatedly throughout the process for a specific plan and an estimated completion date, but my emails have been continuously ignored by the builder. In November of 2023 -- he did finally write to me and said the house would be built by no later than end of December. At the end of November 2023, I requested a meeting and finally had a chance to meet with the builder, **** ******. At that time, he assured me that the house was a priority. He stated during our meeting that the house would be completed soon. It's been another 3 months now since I met with him, the inside of the house is still not completed and I cannot get the builder to provide a final walk through date or a date when the inside of the house will be finished. I have a construction loan. When the house approached 10% completion to finish, the bank also required the builder to finish the job in order to receive the final funds to build the home. Instead of speeding up the build process in order to receive these available funds, the builder called me and demanded I pay the last 10% of the house -- in cash, out of pocket -- or else they would not complete the home. According to my contract with *****, "If the purchaser has a construction loan, all draws will be paid by the Purchaser's lender and any remaining balance will be paid in cash or certified funds at closing.." In other words --- The sooner the house is completed, the sooner ***** will receive payment from the construction loan. It is a standard business practice of the bank to withhold the last payment to the builder until the final 10% of the home is completed. The bank has been extremely flexible throughout the process, but they - too -- want the house finished. The progress on the inside of the home has been fully within ***** ***** control, yet there's so many details still left undone (tile that's halfway installed; no grout, holes in the walls and ceiling due to missing sheetrock, no front steps, garage floors that have chunks of concrete missing, etc.). In addition, I am extremely concerned about the accounting for this build. I was shocked to find out from ****** assistant in December that they had used the majority of the cash funds I had provided to ***** in the beginning of the build (without my knowledge or consent). The use of cash funds was another contractual obligation from ***** that wasn't followed. As it states in the contract: "This deposit will be held until the project is completed." This has been the absolute worst build process, and it seems the only time that the builder or his office reaches out to me is when a payment is due. However, through it all, I have paid ***** within 48 hours of every request -- until the bank said that their practice was to hold the remaining, final payment until the final 10% of the house is completed. I believe it is unfair, unethical and contractually wrong for ***** ***** (now also known as Broadleaf Residential) to bring the house build to a halt, and demand cash payment. It is yet another excuse not to finish the home. I hope by writing to you that this issue can be escalated for resolution, and that this doesn't happen to anyone else who may want to build with ***** *****/Broadleaf Residential. Thank you in advance for your help.

  Customer response

  03/12/2024

  Based on your email today (3.11.14), I understand the company has not responded to you and appreciate you continuing to obtain a response. The company has not responded to me either.  
  
  Have you heard from the company?   No
  
  Are you satisfied with the company's efforts to resolve this matter?   No
  
  If not, please explain.
  
  The builder of ***** *****, **** ****** (now also known as Broadleaf Residential Homes) continues to ignore my emails and has not made any effort to help address my questions and requests for additional information (as listed within my original compliant). It appears he has abandoned the house with the remaining 10% left --- and continues to be in breach of his contractual obligations. This builder's lack of communication has been an issue throughout the entire project and he will not give me any idea of a completion date of the house -- despite multiple attempts. 
  
  Your Signature: ******* ********* Date 3.11.24

  Business response

  03/18/2024

  This project has a septic system issue that is preventing it from being completed. The septic permit we received at the beginning of the project is no longer valid. Upon installation of the septic system under the initial permit, inadequate soil conditions were discovered, and the State of Tennessee prevented us from proceeding. There is no adequate soil for a system anywhere on the customer’s lot. The State and the developer of the community have provided an alternative solution, and it is pending approval. As contractor, we cannot continue working on the septic system until we have permission. A certificate of occupancy cannot be issued until the septic system is installed. It is literally impossible for the project to be completed at this time.
  
  The customer signed a cost-plus contract and did not have enough funds remaining in her loan to complete the project and is responsible for the difference. She refused to make payment on the outstanding balance and gave no indication that she intended to pay it. We suspended construction until the outstanding balance was paid, or at a minimum, she provided assurances that she would pay the difference at closing, including providing documentation of the source of funds.
  
  Today, March 18, 2024, she stated in writing, in an email, that she has the money and committed to pay what is owed after the construction loan is paid. So, we have resumed work on the project. Completion of the project is still dependent on final septic approval.

  Customer response

  03/25/2024

  
  Complaint: ********
  
  While I am glad that the builder is resuming construction, I am rejecting this response because the job is not finished and I don't have confidence yet that the house is a priority. However, I do believe though If the builder would provide a coordinated plan to finish the home, dedicate a work crew to do so and communicate openly, then the house could possibly be finished within the next few weeks.

  Here's why I can't in good faith close this case yet: 

  1. My request was for the builder to finish the job and to provide a plan for how he is going to do so. It's been 8 days since the builder said he would resume construction, but I haven't seen a plan or any real progress. The only thing I've seen since his commitment to resume the house is three glass shower doors installed. And these were installed over unfinished grout in the shower -- so still no, coordinated plan. This is yet another week that has gone by without significant progress and will also require rework due to the lack of proper project management. In my last letter to the builder, I also asked to be advised within 12 hours of any work on the house so I could provide supervision in the absence of a project manager being on site. That has not happened either.

  2. On April 20, 2022, I entered into a contract with ***** ***** (now also Broadleaf Residential). I have made consistent and timely payments (within 48 hours of invoice receipt) for the entire building process and according to the contract and according to the bank's construction loan process. However, when we approached the last 10% of the work, the bank said they would withhold any additional funds from the construction loan (according to contract and as their standard best practice process) until the builder completed the final 10% of the house. Yet --- After more than two years (well beyond their contractual timeline to finish the home), the inside of this basic, 3,500 square foot is still not completed. The list of unfinished interior elements include missing tile, absent grout, incomplete front steps, missing sheetrock in the ceilings and walls, basement water leaks, unstained interior steps, uninstalled appliances, incomplete cabinets, missing stonework, concrete issues in the garage among many others. The builder says the unfinished interior is due to a delay in septic approval, but there's absolutely no reason that the interior of the house should not be completed by now. The inside of the home completion is fully within this builder's control and it has absolutely no dependency whatsoever on septic situation outside the home. The septic situation was also further complicated due to the builder not digging for septic until the 15th month of this build. Most builders begin digging for septic within the first 2-3 months. 

  3. The septic permit is expected any day now. I'm told by the State that all signatures have been obtained so it is just a matter of the State mailing it to him. Again, if the builder would complete everything inside the home right now, he would be well positioned to complete the outside of the home sooner and ultimately finish the job sooner. 

  
  Sincerely,
  
  ******* *********

  Customer response

  04/02/2024

  The builder received the revised septic permit from the State of Tennessee about a week ago so there should be absolutely no reason now that the house is stagnant. What’s the next step as it has been 3 weeks since the builder said in his response that he would resume construction, but they won’t provide a plan for finishing or an estimated completion date. The only thing they have done since their last note is to install 3 glass shower doors (on top of showers that are still missing tile and grout). 
  Thank you again for any guidance. This builder, **** ******, has been extremely difficult. 
  Thank you,
  ******* ********* 
  Sent from my iPhone

  Business response

  04/18/2024

  As explained earlier, when the owner failed to address the outstanding balance due for work already completed, we were forced to suspend construction. When that happened, the project lost its place in the schedules of subcontractors and suppliers. When work on the project resumed, everything had to be rescheduled. In construction, these schedules are set many days, and sometimes weeks in advance. The work was already rescheduled at the time of the owner’s additional complaint and is being completed. The owner was warned at the time that failure to address the outstanding balance could result in significant delays.
  
  The delays with this project are the result of two reasons and two reasons only - the poor financial planning of the owner and the failure to address this issue in a timely manner, and the soil conditions of the owner’s property that required a septic permit revision and approval that were beyond our control. Any other reasons given by the owner are uniformed and manufactured. None of these issues are due to the poor performance of my company and the complaints of the owner are illegitimate. 

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