Schroeder Builders

I would like to thank you for the time you spent to help resolve my contract issue.At this time, I have reached a satisfactory resolution with Schroeder Builders LLC on all theissues mentioned in my complaintPlease consider the matter closed and document your fileaccordingly.I can be reached at ###-###-#### for any questions.Sincerely, [redacted]

Revdex.com: I have reviewed the response made by the business in reference to complaint ID [redacted] , and have determined that this does not resolve my complaint For your reference, details of the offer I reviewed appear below.In reviewing the company response, they do not offer any solutions I have spoken to their Company attorney, and although he agrees that the undisputed amounts should be paid to the contractors, they are only willing to do so if the Company receives additional funds, which is the basis for this complaint I contend that the method as to how a fee is earned/calculated is not defined in the terms of contract Furthermore, although I was given the Addendum "A" at signing, I was not given a cost breakdown of each line item Finally, the contract has lien rights language, which states the Company agrees to cooperate with the Buyer to see that all potential lien claimants are duly paid The attorney has stated they will file a lien against me for the balance of the amount due the contract I have declined their suggestion as a method of resolution I offer the following suggestions for a resolution: 1) the company submits the 2nd draw with the undisputed amount and then terminates the contract; 2) terminate the contract with a lien waiver and no additional fee being paid 3) proceed to arbitration-per the terms of the contract Regards, [redacted]

The customer has made several allegations within his complaint We will attempt to identify and isolate the issues so as to respond in an organized fashion and ease of understandingIssue - Initial Deposit + General Contractors Fee: Prior to executing the contract, the customer was provided copies of the Construction Contract, inclusive of Addendum A and the Specifications The customer also received the schedule of costs, which included designation of payments to me and all other contractors and material suppliers, prior to executing the contractThe Contract clearly states that a nonrefundable deposit in the amount designated is due at the time of executing the contract At no time, in writing or verbally, did I state or infer that any portion of this deposit was to be used for subcontractors or material suppliers of the projectA significant portion of a general contractors work [ex: soliciting bids, reviewing plans, preparing a proposed timetable, etc] in a project is actually completed prior to breaking ground The initial deposit recognizes the general contractor’s effort to that pointIssue – General Contractors Services:In the initial stages of the relationship buyer did state that he had contacts in the industry and wanted to involve them in the project We didn’t have a problem with that as long as the subcontractors were fully licensed and insured Collectively the buyer and I looked over the bids solicited by myself and customer and selected the approved contractors At no time was there oral discussion or written modification to the Contract changing my duties or compensation as stated within the contract Per the Contract Schroeder Builders, LLC was to supervise the project and otherwise provide services of a general contractor for the project Schroeder Builders, LLC was to be compensated at the designated rate over all material and labor As the project progressed the customer began to interject in relationships with subcontractors by hiring contractors himself, coordinating and scheduling various aspects of the project, etcThe customer’s actions have breached the Contract under Addendum A “Work Supervision” by independently bringing other subcontractors on to the job, and interfering with my ability to supervise, control, inspect, warrant the work and otherwise perform the job of general contractor Issue – Draw 2:I submitted to the customer a request for approval of draw number two Inclusive in this request was a schedule breaking down the payment by subcontractor or material provider As part of the draw I solicited payment for a portion of my general contractor’s fee We have repeatedly told the customer that upon approval of the total amount due or other resolution of this matter we will approve the draw.Issue – Windows and Patio Door:Regarding the windows, as stated by us to the owner, if there are any issues regarding operation and quality of the product we will proudly honor our warranty to rectify any current or future situation during the warranty period Regarding the patio door, the owner was invited to meet the sales representative at the showroom, came and approved the window and door order Respectfully submitted, [redacted] Schroeder Builders, LLC

The customer has made several allegations within his complaint.  We will attempt to identify and isolate the issues so as to respond in an organized fashion and ease of understanding. Issue 1 - Initial Deposit + General Contractors Fee: Prior to executing the contract, the customer...

was provided copies of the Construction Contract, inclusive of Addendum A and the Specifications.  The customer also received the schedule of costs, which included designation of payments to me and all other contractors and material suppliers, prior to executing the contract. The Contract clearly states that a nonrefundable deposit in the amount designated is due at the time of executing the contract.  At no time, in writing or verbally, did I state or infer that any portion of this deposit was to be used for subcontractors or material suppliers of the project. A significant portion of a general contractors work [ex: soliciting bids, reviewing plans, preparing a proposed timetable, etc] in a project is actually completed prior to breaking ground.  The initial deposit recognizes the general contractor’s effort to that point. Issue 2 – General Contractors Services:In the initial stages of the relationship buyer did state that he had contacts in the industry and wanted to involve them in the project.  We didn’t have a problem with that as long as the subcontractors were fully licensed and insured.  Collectively the buyer and I looked over the bids solicited by myself and customer and selected the approved contractors.  At no time was there oral discussion or written modification to the Contract changing my duties or compensation as stated within the contract.  Per the Contract Schroeder Builders, LLC was to supervise the project and otherwise provide services of a general contractor for the project.  Schroeder Builders, LLC was to be compensated at the designated rate over all material and labor.  As the project progressed the customer began to interject in relationships with subcontractors by hiring contractors himself, coordinating and scheduling various aspects of the project, etc. The customer’s actions have breached the Contract under Addendum A “Work Supervision” by independently bringing other subcontractors on to the job, and interfering with my ability to supervise, control, inspect, warrant the work and otherwise perform the job of general contractor.   Issue 3 – Draw 2:I submitted to the customer a request for approval of draw number two.  Inclusive in this request was a schedule breaking down the payment by subcontractor or material provider.  As part of the draw I solicited payment for a portion of my general contractor’s fee.  We have repeatedly told the customer that upon approval of the total amount due or other resolution of this matter we will approve the draw.Issue 4 – Windows and Patio Door:Regarding the windows, as stated by us to the owner, if there are any issues regarding operation and quality of the product we will proudly honor our warranty to rectify any current or future situation during the warranty period.  Regarding the patio door, the owner was invited to meet the sales representative at the showroom, came and approved the window and door order.  Respectfully submitted, [redacted] Schroeder Builders, LLC

I would like to thank you for the time you spent to help resolve my contract issue.At this time, I have reached a satisfactory resolution with Schroeder Builders LLC on all theissues mentioned in my complaint. Please consider the matter closed and document your fileaccordingly.I can be reached at ###-###-#### for any questions.Sincerely,[redacted]

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.In reviewing the company response, they do not offer any solutions.  I have spoken to their Company attorney, and although he agrees that the undisputed amounts should be paid to the contractors, they are only willing to do so if the Company receives additional funds, which is the  basis for this complaint.  I contend that the method as to how a fee is earned/calculated is not defined in the terms of contract.  Furthermore, although I was given the Addendum "A" at signing, I was not given a cost breakdown of each line item.  Finally, the contract has lien rights language, which states the Company agrees to cooperate with the Buyer to see that all potential lien claimants are duly paid.  The attorney has stated they will file a lien against me for the balance of the amount due the contract.  I have declined their suggestion as a method of resolution.   I offer the following suggestions for a resolution: 1) the company submits the 2nd draw with the undisputed amount and then terminates the contract; 2) terminate the contract with a lien waiver and no additional fee being paid 3) proceed to arbitration-per the terms of the contract.
Regards,
[redacted]

Review: I signed a contract to build a new home with this builder and paid a deposit which seemed to be outside the normal amount. The [redacted] stated that amount was needed to "get the guys started, with a thousand here and two thousand there." At that time, it seemed like a justified reason. However, at the time of the 1st draw, I then learned the builder did not pay any of the sub-contractors from the deposit. Instead, it was explained to me that the deposit is his "working capital" and it can be spent any way he wants and the funds are not dedicated to my project. This company does not seem to operate in the typical fashion and in essence, I pre-paid him for his service even though the general contractor fee had not been earned.

I was allowed to bring in my own sub-contractors and the company is seeking a fee based on the project total vs a fee for only the work this company needs to expedite. From the start, there have been delays, miscommunications, and wrong information. For example, I was told my excavator was scheduled for a Monday but learned it was never scheduled and the dig would now be delayed 3 weeks. However, the company could have his own contractor there right away, but I had concerns about that contractor. It is common to have repeat conversations on the same topic and I requested he begin writing things down. The company did not seem to have any urgency to keep project on task and I had concerns about the sub-contractors he was recommending. Given all these issues, I needed to take on more involvement in the project.

At the time of the 2nd draw from the bank, the company requested additional money toward the contractor fee, and I declined because it has not been earned yet. I explained to builder he has over half the fee and I do not even have half a house. Currently, the company is refusing to send through the draw unless I pay him more money. Also, there is a pending issue of the wrong patio door being ordered and the new windows being defective from the manufacturer.Desired Settlement: I am requesting the company reimburse me $10,439.75 of the deposit that has not been earned. Alternatively, I offered the builder to send through the updated draw and this would be waived. Either way, given the nature of how the deposit was obtained, I am requesting the builder terminate the contract.

Business

Response:

The customer has made several allegations within his complaint. We will attempt to identify and isolate the issues so as to respond in an organized fashion and ease of understanding. Issue 1 - Initial Deposit + General Contractors Fee: Prior to executing the contract, the customer was provided copies of the Construction Contract, inclusive of Addendum A and the Specifications. The customer also received the schedule of costs, which included designation of payments to me and all other contractors and material suppliers, prior to executing the contract. The Contract clearly states that a nonrefundable deposit in the amount designated is due at the time of executing the contract. At no time, in writing or verbally, did I state or infer that any portion of this deposit was to be used for subcontractors or material suppliers of the project. A significant portion of a general contractors work [ex: soliciting bids, reviewing plans, preparing a proposed timetable, etc] in a project is actually completed prior to breaking ground. The initial deposit recognizes the general contractor’s effort to that point. Issue 2 – General Contractors Services:In the initial stages of the relationship buyer did state that he had contacts in the industry and wanted to involve them in the project. We didn’t have a problem with that as long as the subcontractors were fully licensed and insured. Collectively the buyer and I looked over the bids solicited by myself and customer and selected the approved contractors. At no time was there oral discussion or written modification to the Contract changing my duties or compensation as stated within the contract. Per the Contract Schroeder Builders, LLC was to supervise the project and otherwise provide services of a general contractor for the project. Schroeder Builders, LLC was to be compensated at the designated rate over all material and labor. As the project progressed the customer began to interject in relationships with subcontractors by hiring contractors himself, coordinating and scheduling various aspects of the project, etc. The customer’s actions have breached the Contract under Addendum A “Work Supervision” by independently bringing other subcontractors on to the job, and interfering with my ability to supervise, control, inspect, warrant the work and otherwise perform the job of general contractor. Issue 3 – Draw 2:I submitted to the customer a request for approval of draw number two. Inclusive in this request was a schedule breaking down the payment by subcontractor or material provider. As part of the draw I solicited payment for a portion of my general contractor’s fee. We have repeatedly told the customer that upon approval of the total amount due or other resolution of this matter we will approve the draw.Issue 4 – Windows and Patio Door:Regarding the windows, as stated by us to the owner, if there are any issues regarding operation and quality of the product we will proudly honor our warranty to rectify any current or future situation during the warranty period. Regarding the patio door, the owner was invited to meet the sales representative at the showroom, came and approved the window and door order. Respectfully submitted, [redacted] Schroeder Builders, LLC

Consumer

Response: