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  1. #1
    Join Date
    Mar 2008

    Default Contractor Extortion

    Have a contractor who has been paid to complete the next installment of our home improvements. The contractor was fined by the County (in Georgia) for building without a permit. He will not return to complete the work unless I, as the homeowner, pay the fine for him. How does this affect the contract that he has signed and agreed to? Do I have a case against him for some kind of extortion as the payment of the fine is being used as a work stoppage threat against me?

  2. #2

    Default Re: Contractor Extortion Issue

    It depends on the terms of your contract. Did the price include the permit or was the permit your responsibility? Usually there is a clause "all taxes, licesnses, permits, etc."

    If you were responsible and did not obtain the permit then you are responsible for the fine. Otherwise see what your contract says about termination and notice.

  3. #3
    Join Date
    Mar 2008

    Default Re: Contractor Extortion Issue

    Thanks for the reply. The permits were part of the contract although there is no specific clause noting that. I did give him a separate check specifically for permits as part of the first payment. He later claimed that he did not need to obtain permits and would work according to State laws. This after finding out that he was going to have issues with pouring the foundation. After months of requesting inspection reports without success I went to the County to validate his claims and found out that permits have to be obtained for my type of home improvement project. The contract does not specify termination criteria but does specify a duration of 6 weeks which has long since passed.

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