Issues with Pool Builder

If you have to take them to court, be sure to consult with a lawyer first. In NJ, a code violation is consumer fraud. If PB's conduct violated California consumer fraud laws, you could get punitive damages, attorneys' fees, and more.

The question is can you collect on any court award? Most small business like that are judgement proof unless they carry liability insurance. The company likely has no assests to collect. They will go bankrupt, leave you with nothing , and open under a new name.
 
If you want to collect in court for work performed by another contractor, you have to give the original contractor a reasonable amount of time to address the issues, which have been presented to him in writing. I, too, did not want my contractor to finish the job. He’s a hack. I was grateful when he let the deadline pass. But by then I was golden, procedure-wise, so I was free to hire a new guy. My pool work was completed months before my guy finally paid up, so I didn’t have to go without a pool waiting for the resolution. I only had to wait out the performance deadline of two weeks. Don’t forget to include in the demand letter that you will sue if the contractor doesn’t perform.

And while the CA Board can’t do much to make a contractor perform before a lawsuit, they can after. If you present the judgement to the Board, they will suspend the offender’s Contractor’s license until he pays you, in essence putting him out of business. So he can’t just go work under another name, not legally, he couldn’t be licensed. He’d have to suspend all his crews and stop all his ongoing projects, even right in the middle of a build. It’s big-time leverage. So it’s not the same as it would be for other types of small businesses. The OP probably has $10-15K of work to be done, he’s not going to go bankrupt over that amount and lose his license to boot...

Of course, anything can happen. This is all a gamble, and you strategize accordingly: risk vs reward. That’s why it’s important to follow procedure, and do everything possible to stay out of court. The judge is the real wild card...
 
In Ca the contractor has to be bonded and I think for pool contractors its $10k (I am not positive), the steps that Dirk took are absolutely the best way to get the outcome you want. The bond company will pull their bonding if the contractor is shady or proven to be doing shody work, without a bond ca will pull their license, without a license he legally can not build pools anymore, cant build pools anymore he needs to find another way to make a living.... Its a long stressful road but like many others have said make your punch lists and start with the most important first electrical & grounding issues! then move onto the cosmetics, no more money until you are complete, passed final, and most importantly satisfied. Make sure all communications are in writing and if he doesn't want to write things down do the summary follow-up like previously suggested. Once you pay them good luck on getting anything.
 
"Pool lights were 13” and 6” under water like but need to be 18”, there were electrical wires grounded to plastic and to my heater cover, there is rebar sticking out through the gunite in the pool."

If he will fix these, then have him do it. I don't think you could get this done for $6000. You got burned! Cut your losses and learn from the experience. But get the structural issues, code violations and inspection failure items fixed.
 
"Pool lights were 13” and 6” under water like but need to be 18”, there were electrical wires grounded to plastic and to my heater cover, there is rebar sticking out through the gunite in the pool."

If he will fix these, then have him do it. I don't think you could get this done for $6000. You got burned! Cut your losses and learn from the experience. But get the structural issues, code violations and inspection failure items fixed.

If would not be in my nature to "cut my losses." And "learning" anything from doing so would not be an acceptable trade. That's me. The stress of all this does have a price tag, and for that reason alone some people are better off walking away. I can't do that myself. But you do bring up an interesting notion, even if inadvertently, which is to get what you can out of the contractor first, then go after him for the rest.

Part of the strategy can be how to manipulate the situation (and the contractor) in your favor. For example, I did. My contractor paid for the plaster he ruined. But I upgraded to pebble and paid the difference myself. Not unethical (IMO), but I didn't advertise that to the contractor, which would have just inflamed the situation and made him dig in his heals even more than he did. How much of the remaining work do you want him to do? Maybe all of it. Or none of it. Or a portion. Do you want him to do the work, based on his skill level? Or do you want the work done better, by someone else, so that the quality is better? Or maybe you get the contractor to do what he's willing to do, then have someone else do the rest. All the while keeping an eye on the budget. By that I mean: in CA the Small Claims Court limit is 10K. Say you need 15K of work. So maybe you suffer through another 5K of work from the original contractor. Maybe the portion you know he can handle. Then you get the other 10K of work done by another contractor, like the plaster and tile. And then sue the PB in Small Claims for the balance (negating the cost of an attorney). We haven't heard any estimates, but I'm guessing the remaining work is not enough in dollars to warrant a lawyer. They can really chew into a budget, and unless you have a contract that stipulates it, you don't usually get attorney's fees. Point is, do what ya gotta do to get the most for your pool for the least out of pocket.

But remember, the original contractor has to refuse to do the work before you get somebody else involved. He has to be notified of what there is to do, given time to do it, and he has to walk away from that. You may be in a Good Faith Dispute, but you are still obligated to honor the contract and allow the contractor to complete the work. You can only use someone else after you've satisfied the due process. Well, that's if you want to get paid! You can hire someone to do the tile, for instance, and not ask the contractor to pay for it. You eat some dough, but you get the quality you want that the PB has not been able to deliver. You can't necessarily sue someone for not providing a level of quality to your liking. It can be a grey area. There are standards, but they can be open to interpretation. And judges don't like to get into that.

Lots of ways to end up satisfied. Just a matter of coming to terms with what you're willing to do to get that satisfaction, or live with it if you don't...
 
The question is can you collect on any court award? Most small business like that are judgement proof unless they carry liability insurance. The company likely has no assests to collect. They will go bankrupt, leave you with nothing , and open under a new name.

In NJ -- and I assume CA as well -- for a contractor to be licensed they have to carry a certain amount of insurance. So there should be money available. I just handled a similar case this spring. PB built pool out-of-spec, 18" too high in spots, without disclosing to my clients or getting their consent. Clients had to spend ~$20k more to raise the deck to be even with the pool, build steps for access, etc. We sued under the NJ consumer fraud statute (which allows for treble damages and fees/costs) and PB settled quickly, getting all their $ back plus my attorney fees. NJ v. CA, but you get the idea.
 
CA contractors are required to be bonded. Which is a type of insurance. But they are not required to maintain liability insurance. The bond might help the OP, but it might not be enough. I think it's $12,500 for a pool contractor. And my guy caved before I went after his bond, so I'm not sure how well that process works, or what exactly it covers.

My biggest mistake, (well, one of) was not inquiring about, and insisting on, my contractor having liability insurance. I assumed he carried it. What kind of moron would allow his employees to pour acid on $50-150K+ swimming pools without carrying liability insurance? Uh, mine!! Not asking for proof of insurance was a serious oversight on my part...
 
Sorry to hear this I'm going through the same thing with my PB. I contacted the state licensing board here in California and filed a complaint it is free of charge and they will mediate with you and the PB for free and try to resolve the problem. PS document everything incase you have to escalate things if need be.
 
I'd like to think that filing the complaint with the Board was a public service! It got me a resolution, which was great, but it also put a notation in this guy's file with the Board. If others did the same, and the Board was forced to do more than slap his wrist (like fining him, suspending him, etc), then he'd either straighten up his act or be out of business, which might save others from having my experience with him. I think the Board does virtually nothing for the first incident, maybe for the first few. But if they see a pattern and multiple complaints, then they step it up.

Here's a crazy part of my story I can now share, now that I have my dough. I was using the Post Office to send my certified letters. When I was handing the last one to the postal clerk, he said "Hmmm, we're seeing a lot of these for this guy." I was stunned. I asked, "You mean you remember the ones I've been sending, and his replies?" He said "No, I see way too many letters a day for your two or three to register, there would have to have been many more for me to remember them like this." Double-barrel stunned. One, that this postal worker would reveal something like that, and two, that my contractor was that bad that he's got multiple people after him! And that was a bit of an inspiration to get going on my case, and the point of this story: don't assume you have forever to settle with a contractor. He may have others after him too, and when it comes to a guy going under, it's first come first served. Once he runs out of dough, it doesn't matter if you win or lose. If he goes out of business, then the Board's sanctions and/or collection agencies, etc, are useless...

Don't wait as long as I did to get the Board invoked. Keep the timeline for this process as short as possible. Get his money before someone else does!!
 

Enjoying this content?

Support TFP with a donation.

Give Support
Thread Status
Hello , This thread has been inactive for over 60 days. New postings here are unlikely to be seen or responded to by other members. For better visibility, consider Starting A New Thread.