The purpose of this review is to tell our bad experience with this contractor and for others to avoid such experience in the future.
Home Renovation Contractor: HSA
586 Third Line, Oakville, ON L6L 4A7
Tel. (905)827-4088
Owner: Phil
Manager: Lou
Summary of Our Negative Experience:
1- HSA requesting 20% additional budget on the work, even though all the work was within the original scope of work quoted. When we outlined our position to them, they simply abandoned the job site and have not returned in 7 weeks.
2- Refusal of HSA to allow us to hold back 10% of the contract amount, in line with the Construction Lien Act, and requesting all payments prior to job completion, and abandoning the job site since we advised them that we would exercise our "legal right" to hold 10% back. They abandoned the job site 24 hours after a progress payment was made to them for work they had not completed.
3- Verbal and abusive aggression by the manager of the company Lou.
4- Unfair business practices under the Business Practices Act (details provided)
5- Deposits given, work not done / service not performed
6- Failing to complete contract deliverables
7- Lack of adequate response from the company
Details:
In December, 08, we requested a quote from HSA to renovate our new home. After 3 meetings, we agreed upon the scope of work for the project and entered into a contract with HSA to renovate our home. On the third week of the project, we began receiving emails indicating price adjustments (increases) for items that were clearly within the scope of work. In consolidating all of their adjustments, they were valued at 20% of the project budget. In efforts to work through this issue, we showed good faith and provided a progress check and requested a conference call with the owner of HSA (Phil) to review the scope of work and why the increases requested were not justified. The resolution was that he would need to discuss the issue with his office staff. Following this, within 24 hours, we were advised that HSA staff / subcontractors were abandoning the job site. There was no effort on HSA's part to negotiate with us, or an intent to find a resolution. They abandoned the job site 24 hours after receiving a $10,000 progress payment for work that had not been completed.
Following that, we only received status updates when we requested them, and we felt like they were using time as ransom for accepting their price adjustments with the 20% increase. On the fourth week, we met with the manager of HSA, Lou, who unfortunately did not have the authority to negotiate beyond $1,000 with us. The owner, Phil, who entered into the contract with us, was on vacation for 6 weeks and was only available by phone- and any further negotiations would need to be done by him. Thus buying them more time, and creating frustration on our end, we agreed to a conference call to finalize our position and resolve the situation.
At this time we advised Phil, owner of HSA of the following:
- Verbal aggression of his staff towards my partner (intimidation factor)
- The lack of cooperation of his office staff including manager to resolve the issue
- 4 week delay in work to date
We were willing to meet them half way, and agreed to half the amount they were asking for, even though it was unjustified as all work on the project was within the original scope of work. We made this offer just to proceed with the project.
The offer was rejected and we were advised that we would receive an invoice. We in fact did receive an invoice, and a note that indicated that since we no longer wanted to work with the manager (based on the aggression listed above) that any further communication would need to wait until the owner's return in a few weeks.
We are now in the 6th week of no work. We have overpaid the contractor based on a good faith progress payment. Furthermore, our materials are being held in the warehouse and they would like an additional $12,000 to turn them over.
Our new home and renovation was supposed to be an exciting experience, and we trusted HSA in providing us with an accurate quote for quality work. We have a contract with them and which they are refusing to uphold. As a consumer, I feel victimized where the only recourse that I could take would require an even greater investment in legal fees to help re-coup a portion of the costs incurred throughout this process. In the meantime, we are carrying 2 mortgages, and have a house, sitting empty and incomplete, with our funds tied up with a company that is not ethical in their practices.
We have 164 pages of documentation documenting all correspondence to date. We have tried to be as clear as possible with HSA throughout the process, initiating most of the discussions and following up.
Since no work has been done in 6 weeks, we have since asked them to return the key to the house, as well as issue a cheque for $21,000 covering the amount overpaid to them based on the percentage of work complete, and the progress check that was paid 24 hours prior to them abandoning the job site.
We cannot afford to start over or to take this kind of loss on materials and time delays, yet it seems that this contractor is happy to leave things until the owner returns in late March which is unacceptable for a starting couple trying to move into their new house.
We would like the contractor, HSA, to honour their written agreement with us (details can be provided as requested), and/or return the key to us and a cheque for the amount overpaid by us out of good faith. Alternatively, the contractor can deliver our materials (kitchen and bathroom vanity) free of charge as a settlement for the amount owing to us.
Further Details:
For anyone who is interested, we have 164 pages of correspondence on our problem.
Regards,
Philip in Beaches
- Approximate cost of services:
- $105,000.00
- What could this company do to improve their services?
- Return the amount of money overpaid to them before they abandoned the job site. OR Deliver our materials free of charge.
- Any advice to offer fellow homeowners facing a similar project?
- Do not use this contractor, as they simply do not honour their contractual obligations (signed agreements / written commitments), and request unjustificable additional funds and abandon the job site unilaterally if additional funds are not approved.