$100,000 Contractor ripoff that New Avenue would have prevented

A crooked contractor stole over $250,000 from 10 different clients. One young couple lost over $120,000.  All of them would have been protected if they used New Avenue’s bid form and construction agreement. Read this post and use the format provided and this won’t happen to you!

New Avenue partnered with a local general contractor to build a project for one of our client. They had glowing Yelp reviews, they completed projects for high end modern architects that are part of our team, and they have been in business for years. They passed our filters and likely would have passed your filters too!

When working with New Avenue, this contractor and our clients finished the project without a hiccup. As part of our standard process  we received a detailed bid and we paid them as the work was completed on site.  The project turned out so well it even ended up in numerous magazines!

This contractor started building his own business independent of New Avenue and sold over 10 more projects outside of New Avenue.  They even stole a New Avenue client by promising better service (and at a higher price too!) if the client just worked directly with them.

They took deposits on these projects and then mismanaged almost everything.  The contractor went bankrupt and left the clients with nothing.  Now over 10 clients, including the young couple that is out over $120,000 is hoping to recover some money from materials that are sitting in a garage and slated for a bankruptcy auction. They’ll get pennies on the dollar if anything.

The craziest thing, is that contractor is now pitching homes to fire victims in Sonoma following the fire and his business partner is continuing under a new name.  They even called us to talk about working together, as if nothing has happened.

They stole a life changing sum of money from several families and aren’t  even trying to make it right. They just charge ahead, onto their next mark. These are the people giving contractors a bad name.

If those clients had used New Avenue they would paid for work after it is completed and visible on site. They would have been protected. They would not have lost their money.

Every client should have a policy to have a detailed bid, clear construction agreement that states what you are building and pay for work that is done. But as an owner you are probably doing this type of project once, or maybe twice. So there is no reason why you’d know how to do this.

That is why New Avenue provides the best practices in getting bids, construction agreements and paying with an easy transparent process.

If you use this New Avenue Example Budget and this type of New Avenue Construction Agreement

Want to hear a less terrifying but sad story about the other side of this? The bad client? Read here.