Maryland | Construction Law
Legal Question
Customer Won't pay
I have a customer on a LARGE deck & gazebo project that is refusing to pay the final draw ($17,000) because of punchout items. Although the project is complete as per contract; And in the spirit of ''the customer is always right'' and wanting to have a happy client, I still cleaned up a punch list he came up with of over 50 items (piddly things such as ...23rd deck board has two screws that are over tightened.)
Even after that he is still not satisfied. Now he has a new list, which includes replacing a torn screen panel (he is using the deck and has had parties on it and I know that it was not done by us). At what point is enough enough?
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Legal Answer
Re: Customer Won't pay
This claim appears to turn on the definition of substantial completion and final completion. The punchlist (and there should be only one)created after substantial but before final completion should not include warranty items sucha as a torn screen panel.
It may be time for a consult with an experienced construction lawyer to not only pursue this case but to review your contracts to try to ensure that such a situation does not happen again.
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Bromberg, Rosenthal, LLP 401 N.Washington St., Suite 500 Rockville, MD 20850
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Legal Answer
Re: Customer Won't pay
The customer is right applies when in fact they are correct. I'll need to see the contract to determine whether your performance measures up to what was the basis of the bargain.
Punchout items occur based upon several factors such as the complexity of the work, unusual expectation of quality, deficient workmanship, unique specifications, and specific contractual elements.
It appears that the individual is attempting to avoid payment on a contract. Beyond the contract are equitable claims.
It may be that you are at the point to involve counsel to resolve the matter. Timeliness with a forthcoming payment is a business decision and each business has varying needs.
Call me and let's discuss how I can help you with what I do best so you can continue working on what you do best. 410.750.2567
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Law Offices of G. Joseph Holthaus 2255 Daniels Road Ellicott City, MD 21043
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