Adair Homes Inc

Please accept this email as an official notification that claim #[redacted] with Adair Homes is resolved and no further or future action is required.

We have come to a positive resolution with Mr. [redacted] in regards to his complaint.

This is a response to the most recent information submitted by the [redacted].  We are currently interacting with the customer outside of the Revdex.com with the hope that there is a resolution that is suitable to both parties.  I would hope that this complaint can be resolved as closed and the customer can re-open if they still have a Revdex.com warranted complaint at the end of the process.

As stated in the previous response, even if we had provided the additional time beyond the 60 day period that we estimate for drawings to be complete, the homeowner would still not have met the price protection period. From a contractual perspective, I have have attached the Joint House Building Agreement signed by the homeowner, which does not guarantee a specific drafting timeline.  Our 120 day price protection period is industry leading, and Drafting turn times fluctuate during the year, as demand increases and decreases. It is highly unfortunate that the cost to construct homes are increasing industry wide and the homeowner had to partially (discounted) share in this cost increase, however we stand by our contract and the decision.

Complaint: [redacted]I am rejecting this response because:
I see the redacted copy of the email between alliance financial and John B[redacted] that you provided that the appraisal came in 95k short. 
I also have have a very limited email conversation with Kelly M**, because on the phone we were told to provide a copy of the rescission agreement to her to receive our down payment back, WE would have never know to do this, if we were not told this
Lastly, I have a copy of the contract cancellation agreement " In the event [redacted] and [redacted] and ADAIR homes, Inc. enter into a contract for the construction of a residence within the next 24 months (24) from todays date, Adair WILL reinstate the $1,700.00 Processing fee paid by [redacted] and [redacted] ON July 09, 2015, and credit those funds to [redacted] and [redacted]" 
We knew you would probably keep our down payment because of the silence from Adair, I get it, no paper trail, but I would have never gone to another contractor and just given up $1,700.00 if you would have just returned 1 phone call. We are not a big corp. and this is a huge hit to us financially. So this would have been in OUR best interest to work with Adair, I just wish you would have worked with us, and FYI, I also didn't see where Adair offered to try something else, like a smaller home, just silence!
Sincerely,[redacted]

Customer Information:
Buyers: [redacted] & [redacted]
Address: [redacted]
  [redacted]
Branch Office: Kennewick, Job# - [redacted]
Order Accepted: June 5th, 2013
Released into Construction: February 19th, 2014
Final Walk: July 25th,...

2014
Plan: 2080 Traditions - Garage Right
Enclosures:
Closing Letter - Dated 7/25/2014
Completion Statement: Dated 7/25/2014
Project Inspection Report and Agreement: Dated 7/25/2014
Important Notice to Homeowner and All Occupants Packet: Dated 7/25/2014
Certificate of Occupancy: Confederated Tribes of Umatilla - Issued on July 7th, 2014
2-10 Home Buyers Warranty: Dated 7/29/2014
Adair Homes is a company that stands behind the homes we build and acts responsibly per the conditions of the warranty provided at the point of sale and has been doing so for the past 47 years.
Adair acknowledges there was an unforeseen and accidental water event which took place during the construction of the [redacted]’s home. Adair personnel, and the plumber associated with the construction of the home, acted quickly and responsibly to mitigate any related damages caused by the unforeseen water event. Affected and/or damaged materials, such as the door jams, baseboard, drywall and flooring materials were subsequently all removed so the substrate could dry appropriately. Once the areas were properly dried, new materials were sourced, and the home was completed in a proper workmanship fashion.
Adair presented the home in its completed state on July 25th, 2014. (See Attached Closing Letter, Completion Statement and Project Inspection Report)
Should there have been any moisture damage relating to the past water intrusion event, there would have been visible signs of product damage discovered and documented for repair prior to the closing of the property. No mention of damaged was documented during the final inspection of the home or subsequent closing process. The [redacted]’s met with Adair Representatives, inspected the property thoroughly and accepted their home as complete on July 25th, 2014. (See Attached Project Inspection Report and Agreement)
Approximately twenty plus months later, the [redacted]’s reported the presence of a flooring problem to Adair. Adair responded to the Customer Service request and made note of damaged flooring areas which appeared to be related to topical moisture damage and discovered two laminate flooring boards that were incorrectly cut short and should not have been installed. Adair Homes had an independant third party inspect the floor who also concluded the laminate flooring was most likely damaged through topical moisture.
Adair agreed to take corrective action relating to the incorrectly short cut flooring materials. A flooring contractor was sent to make corrections to the two boards identified as incorrectly cut but the repair technician was turned away by the [redacted]’s unless the entire floor was to be repaired, including the topically damaged areas.
Adair has repeatedly informed the [redacted]s there would be no warrantable or corrective actions taking place relating to the topical moisture damages.
In an act of good customer service, Adair is still willing to proceed with addressing the miscut short boards but will not be taking any warrantable corrective action relating to the “post close” topical flooring damages.

I am writing in response to the concerns reported by Mr. [redacted] in his message to your office. I would like to provide some contextual background:Founded in 1969, Adair Homes is exclusively a builder of semi-custom and custom homes on property selected and owned by our customers. Adair does...

not engage in traditional land development or subdivision-based home construction.Adair Homes and our customers enter into a Joint House Building Agreement  (Contract), which details the responsibilities and commitments of both Parties.Per the Contract, the customer is responsible for certain aspects of the construction, most notably site preparation, grading, permitting and foundation excavation.The location of the customer-selected property or lot is often the sole factor in certain costs associated with construction. These may include costs of land development, jurisdictional requirements and neighborhood Covenants and Restrictions.In his complaint, Mr. [redacted] did not include a  number of key facts.Mr. [redacted]'s chosen property includes an estimated 30 feet elevation change within the proposed build area, which would require a massive excavation and removal of excavated soils/boulders/debris.The property is located in a subdivision requiring a high-cost masonry exterior, and within a municipality that requires an expensive home fire-suppression system.Adair Homes' staff devoted hundreds of combined man-hours in investigation, design, estimating and supervisory time in an effort to accommodate Mr. [redacted] and the requirements of his property, including:3 site evaluation meetings2 design meetings3 drafted preliminary designs or revisions2 sets of calculations from outside engineering firmsAfter this significant investment of time and expenditure, it was Mr. [redacted] who chose to cancel the Parties' agreement, citing the expense involved in development of his land and associated costs.Per the terms of our Contract, Adair Homes is entitled to receive 10% of the contracted price of the canceled home order- in this case approximately $24,000.Instead, Adair's management chose to retain only Mr. [redacted]'s contractually non-refundable Administrative Fee of $2900- a sum that does not begin to cover our Company's losses in this canceled transaction.I would also like to express our resentment at Mr. [redacted]'s liberal use of inflammatory terms such as "Bait & Switch" in reference to our 48 year-old Washington-based company. Having constructed nearly 20,000 single family homes, we pride ourselves on transparency and fairness as we pursue our Mission to bring quality, affordable custom construction to our customers.   In summary, Adair Homes believes we have responded appropriately to Mr. [redacted]'s decision to cancel our transaction- even making accommodations that result in significant financial loss to our company. We believe Mr. [redacted] has been treated fairly and reasonably, yet he persists in claiming otherwise despite the facts presented here. If Mr. [redacted] truly believes he has been wronged, he has the opportunity to prove it through the Dispute Resolution process called for in our contract.Thank you for your inquiry. If any further information is required from Adair in this matter, please do not hesitate to contact me.

Complaint: [redacted]
I am rejecting this response because: We understood that there could be a price increase. We weren't expecting one that high. We were told numerous times by their representative that the price increase could be mitigated because of the extra money that we had to pay to PSE for the electrical permit. We were also told by that same representative that the prices may even be dropped to next-to-nothing, because of their delay in getting us our paperwork to apply for permits. We received the paperwork to apply for our permits on August 10th, 2017. We tried to submit the paperwork, but it ended up being wrong and was missing information. We went back to the Adair office so they could fix it. They had to overnight the correct documents, which we didn't receive until the following week. So we didn't end up actually being able to apply for our permits until August 17th, 2017. The end of our 120 day price guarantee was September 12th, 2017. We didn't get our permits until September 22nd 2017. This pushed us out to the rainy season and couldn't do any work for a whole week. We were finally lot ready on October 26th, 2017. Also, there was never any discussion as to an adjusted date to be site ready. We were told that we were still three days late and would have to pay the price increase. We were told just to get site ready and then we could talk about our options. There were no options, just them telling us we were late and that we had to pay. On top of that, one of their employees had told us that this was the highest price increase he had ever seen, that's including the discount. We had a hard time accepting the price increase and we asked for an itemized breakdown of what the money was going towards. We had thought this was a legitimate request, but Adair Homes replied to us saying that they didn't have to give us that information. Essentially we were just supposed to fork over an extra $7600 without any proof, because the prices for lumber increased. In the end we decided to pay the money, because it would be cheaper than starting over.At this point we just wanted to put all of this behind us and get our house going. Adair is trying to terminate our business relationship and get us to back out of the contract. We told them we didn't want that, but they refuse to submit our house in to vertical construction. They are essentially blackmailing us in to backing out of this deal. That's not what we would call ethical or business professional.
Sincerely,
[redacted]

As detailed in my prior response, we followed up with he customer and were able to resolve the complaint.

Complaint: [redacted]
I am rejecting this response because: Adair verbally agreed to solve the issue with me. But no further action taken yet. Waiting for more details from Adair. 
Sincerely,
[redacted]

I have finally received the check.

Revdex.com:I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. Sincerely, [redacted]

We reviewed the customers response, and as we detailed in our last response, Adair Homes is willing to replace any boards that were cut too short and wrongfully installed at the point of original flooring install. Additionally, Adair Homes is willing to have the current floor evaluated by an independent manufacturer's authorized flooring inspector. 
 
Should the independent inspector find evidence the flooring damage is related to the original water intrusion event, Adair will take corrective action.  Adair Homes will not be taking any post close warranty action in regards to replacing flooring damaged by topical moisture.

Complaint: [redacted]
I am rejecting this response because:1. The lot condition isn't a secret to Adair Homes. As a matter of fact, the first thing that we did before the two sides signed the contract was that Adair Home sent some employees to evaluate the lot. I met the Adair Home employees at the site. They did measurement,  draw pictures, and check the dirt of the lot, etc. Then they gave us the recommendations and the additional cost that we had to pay because of the condition of the lot. We signed agreement only after both sides have evaluated the lot and agreed on the price.2. Their trick was that they just didn't do anything after they received my deposit and signed the contract. I had to push them to move forward. And that's when they told me that they increase the prices for building the house, which was within the price frozen time period, 120 days after we signed the contract. 3. Adair advised me to sell my existing house first. We mistakenly trusted them and did as they advised. When we finalized the contract with them, we sold our house and moved to a temporary house to get the fund ready for Adair. Since my families had no place to go when they raised the price, we originally intended to pay the ransom. But, they kept raising the price again and again. I only had to withdraw after we ran out of options with them. 4. Adair home used bait and switch trick to trap people first. Then they raised the price after we gave them the deposit. For them, the contract means nothing since they can raise the price within the price frozen time period specified in the contract.5. They can keep doing this kind of scam because of the contract. It's their prerequisite that we had to agree not to hire an attorney to file a lawsuit in court against Adair Homes if there are any dispute. We trusted them since we thought the company had been there for a while.I didn't expect that they use this to milk clients.6. Only after we were trapped, we started doing research online. We found that I wasn't the only one who got trapped by Adair homes tricks. There are a lot of families who were their scam victims. There are a lot of bad reviews about them on their Facebook page. Ironically, I noticed that they took off their facebook review section recently. Now nobody can see the reviews. There will be more families to be trapped by their scam unfortunately.Thanks,
Sincerely,
[redacted]

I have read the customers complaint and would like to address the points made in her complaint.As it relates to her having items on her home that require warranty/post close follow up, I have requested that our construction reach out to the customer to address any outstanding issues.  She will...

receive a phone call from a construction representative within 72 hours, and her scenario has been assigned to our Customer Care Manager, Brenda, who will ensure that these issues are addressed.Specific to the 63 day past completion:  Adair does not guarantee build times nor do we specify a build time in our contractual documentation.  Build times vary by season, location, customers execution of their responsibilities and many other factors.  We completed this home within the range of time that estimate, which is 5-7 months.  Ultimately, the customer had different expectations and we apologize for this not being as clear as it needed to be.In regards to the comments about the price increase. Adair Homes offers a 120 day price protection, which is an industry leading timeframe.  Which means our customers home price is locked from the time of Order Ratification, and as long as the customers site is ready within 120 days, their homes price stays locked all the way through construction.  If a customer does not meet the 120 period, and within that period of time Adair has increased prices on all of our homes, the customer is subject to the new pricing.  It is important to be clear that we do not increase the prices for individual customers, we raise prices across all plans and markets at the same time.  The Myers delivered their lot ready to build in 227 days, which is 107 days the 120 pride lock period. As the customer mentioned, there was a price increase on their home which was required to be captured of $5,395, which was a portion of the actual cost increases that the industry is experiencing. As an example, the current price of the same home the customer built is over $20,000 more than what the [redacted]s paid.  Despite the fact that customer had to pay a price increase, they still earned a tremendous value.In the current housing market, the cost to build homes is increasing in 15% per year range. This includes the cost of materials to build homes (lumber..etc and the labor to build homes (plumber..).  As these industry costs increase Adair is forced to raise our prices accordingly.  I have included an article below that highlights the challenges that the building industry is dealing as it relates to price increases. https://www.realestateconsulting.com/cost-increases-top-2017-housing-market-surp...⇄ are going to work with the customer to resolve the outstanding construction related items, and apologize the customer has these strong feelings about their experience.  I recognize that this response does not resolve the customers complaint entirely, although hopefully it adds perspective.

Complaint: [redacted]I am rejecting this response because:
In order to get my refund Adair agreed to I had to submit a claim at small claims court.  The company is dishonest and I do not support or recommend them.  We still came out with a loss of 1200$ from the company lies.Sincerely,[redacted]

Subject: Complaint ID: [redacted]
Hello -I would like to close and resolve this complaint, but am not able to find a way to do so online.

Adair Homes is highly vested in doing everything we can to make every project successful.  Unfortunately, there are times when there are factors completely outside of our control that do not allow a project to work for a customer. For this reason, Adair Homes has a very specific and detailed...

contract (“Joint House Building Agreement or “JHBA”) that explains how these situations are handled (attached).
The JHBA clearly states that the Processing Fee that is paid to Adair Homes of $1,700 is non-refundable.  Adair performs many tasks on each project that this fee contributes towards, including a construction manager site visit, the drafting of a full set of construction drawings that include 3rd party structural engineering costs, truss and floor joist engineering among other expenses.  
In regards to the comments related to the customer wanting to move forward with Adair on a smaller home plan, we have no knowledge or record of these requests.   We are would have been highly motivated to work with the customer to build a smaller home.
Additionally, the documented timeline does not support the customer’s claim  that Adair was not responsive.  The customer made the choice to cancel within 10 days of the appraisal being completed.
Adair Homes  and the customer were informed that the appraisal was completed on 8/4/2015. (notification attached)
Adair Homes was notified in writing from the customer on 8/14/2015 that the customer wanted to cancel. (see attached)
Adair Homes also communicated with the customer and their lender during the 10 day period as well.
 
Adair Homes wants to build homes for every customer and provide a positive experience each time, and there is no benefit to either parties when a project does not move forward.  We have the JHBA in place to govern these situations, and we are following the parameters detailed within. We are grateful the customer was was able to ultimately build their home and wish them the best.

In the customers statement, they claim the purchase date of their home was 6/1/2014. This is not a true statement. In fact, the purchase date of the customer's home is August 9th, 2012. (See attached Joint House Building Agreement/Purchase Contract).Adair Completed construction activities and...

presented the home as complete on March 3rd, 2013. The home was accepted as complete and satisfactorily built by the customer at that time. (See attached Project Inspection and Agreement Report)At the time of the home's purchase, Adair included a One Year "Fit and Finish" warranty, and Two Year "Plumbing Heating and Mechanical Performance" warranty and a Ten Year "Major Structural" performance warranty. (See attached 2-10 Warranty information)In February of 2015, the buyers complained to Adair about the condition of their carpet. Adair in turn relayed this information to the Carpet Manufacturer and the Manufacturer's local distributor. On March 16th of 2015, the carpet manufacturer and the local distributor dispatched a certified independent 3rd party inspector to investigate the claims made by the customer. It was determined by the inspector that the latex in the backing of the carpet was sparse, hard and even brittle. In fact, the soft-back appeared nearly transparent in several randomly inspected areas and was leading to poor texture retention in the carpet. This report was issued and shared with the carpet manufacturer, the distributor and with Adair Homes.The manufacturer has issued a statement that they will honor the provisions of their warranty and will pay out 60% of the original value of the carpet due to the defects found by the independent inspector. (See attached carpet manufacturer's warranty). The value of this warranty settlement comes to $801.39 and will be paid upon the execution of a release of future claims relating to the defective carpet settlement. (See Attached cash settlement/release of future claims)Adair is not in possession of monies owed to the buyer nor are we "holding" a check from the manufacturer issued to the claimant/homeowner.  Adair is simply trying to act as the conduit between the homeowner and the manufacturer. Once the release of future claims is executed by the buyer, Adair will issue a check to the buyer on behalf of the manufacturer and then the manufacturer will reimburse Adair for executing their warranty settlement. Adair personnel have attempted to parley with the buyers on behalf of the manufacturer, in an attempt to expedite the satisfaction of the warranty, only to find the buyers not accepting of the provisions of the manufacture's warranty terms and cash settlement.
[redacted]SUPPORTING DOCUMENTS REDACTED BY Revdex.com[redacted]

Complaint: [redacted]
I am rejecting this response because:we would not have ran out of time in meeting the 120 day site ready if Adair hadn't ordered the home before we even owned the land. Legally we had no right to develop the land or become site ready within this timeline. They knew by ordering the home we were locked into their contact and invested. Adair took advantage of our lack of knowledge of the industry and knowledge of how long the process takes, they assured us we would have enough time to become ready. That was false and misleading. 
Sincerely,
[redacted]