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#1861 - 05/07/04 11:21 AM Contractor ripoff
stolentrust Offline
Junior Member

Registered: 05/07/04
Posts: 1
Loc: McKinney, TX
We hired Doyle Murley from Van Alstyne Texas to build a garage and add an addition to our home. We paid him a downpayment to start the job. He replaced a fence and hot water heater and then did little else while waiting for our loan to come through. We demanded copies of receipts for the money paid that he said had been spent on supplies and when unable to produce these we cancelled the loan. He admitted that he spent some of the money on himself. We now have an incomplete fence and are owed $10,000 by Doyle Murley. We have tried to negotiate a settlement but with no luck and so we are pursuing legal action. We do not want this to happen to anyone else and so we are posting warnings on all home construction bulletin boards. If Doyle Murley has taken your money we would like to hear from you at stolentrust@hotmail.com

#1862 - 05/08/04 11:29 AM Re: Contractor ripoff
pbjinc03 Offline
Junior Member

Registered: 05/08/04
Posts: 4
Loc: Chandler, AZ USA
I would like to just say you should NEVER EVER give a contractor money upfront. To me as a Licensed contractor this would raise to flags if I was a Home Owner. 1st would be if this guy needs money upfront for material how does he pay his workers. 2nd would be that this guy or company spends all the profit the company makes. A well established company has something we call "working capito" or "charge accounts".
I just want to stress NEVER EVER give someone money upfront.
It is different if you see the material on a job then give a deposit or "progress payment". Also material is usually about 1/3 the cost of a job the other 2/3 is labor and profit. So if they ask for 50% after material delivery only give 33%.

Thank You,
Jeremiah Scott, CEO
Painting By Jeremiah, Inc
Chandler, AZ