How to protect yourself from bad contractors
If you have been following this blog for the past few months, you probably read or noticed that our house project slowed down before Christmas and then came to a complete stop. There was virtually no construction for the first four months of 2006 until we found a new contractor. We are happy with our new contractor and the project has started to show signs of life again. I have avoided talking about the situation in detail as I was really hoping that things could be addressed and settled. As the situation has become worse and we are now dealing with liens and things, I have decided the right and honourable thing to do is to warn others about what can go wrong when dealing with general contractors. We would like to share some of what we learned in our interactions with Marcello Spoletini (info@urbantechhomes.com) and his contracting and construction companies: Urban Tech Homes Ltd. and Green Tech Construction.
Our house project has a simple final goal, to build a small house just outside the downtown core for two newlyweds to start a family in. We carefully based our designs on the Ramsay Community design guidelines to build a house that fit into the historic community instead of an ultra-modern in-fill. We also wanted to try and build the house in a manner that might lessen the impact the environment, both in construction and after the house was built.
Liens and things – How we found our contractor
When we were visiting my wife’s parents in Canmore, Alberta, we saw a house being
built next door that was using Logix Insulated Concrete Forms (ICF). The house project was just getting started and we happened to catch the home owner on-site. The home owner introduced us to his builder, Urban Tech Homes Ltd., which is a Calgary based construction contracting company run by Marcello Spoletini. Marcello Spoletini came across as an interesting, warm and confident builder and Urban Tech Homes Inc., appeared to share our interest in ecology, environmentalism and energy efficiency. After our meeting, we contacted our Architect and made plans to switch from a stick-frame construction to Logix ICF concrete blocks by Marcello Spoletini and to have Urban Tech Homes Ltd. be our contractor for our home in Ramsay, Calgary.
Marcello Spoletini and Urban Tech Homes Ltd., contracts the demolition of our home on August 14, 2005
Liens and things – Our house is gone!
Our initial relationship with Marcello Spoletini went well. We knew that he was building at least two simultaneous homes, one in Canmore and our house in Calgary and that there was an incredible housing boom in Calgary. On August 14, 2006 Marcello Spoletini and Urban Tech Homes Ltd. arranged for an excavation company to demolish our little old house and officially begin our home project – and we became nomads living with friends and family while our house was being built. Our original contract with Marcello Spoletini and Urban Tech Homes Ltd., had a move-in date of December 31, 2006 and we made arrangements to find places to stay for the next six months. We were beyond excited to start our project and I began putting together the pieces that would be this website during the fall.
The Logix ICF foam blocks for the basement walls arrived in September and things seemed to be moving along. My wife and I found out some great news, our first child was on the way! On the house project, we received invoices from Marcello Spoletini (via Urban Tech Homes Ltd. for contracting and Green Tech Construction for labor) for the major pieces of our home like the excavation, the trusses, the ICF blocks, steel for the concrete, etc. Marcello Spoletini told us that things would be moving fast for Urban Tech Homes Ltd. and that he wanted us to pre-purchase materials and store them at Macello Spoletini”s father-in-laws warehouse in Calgary. This talk about the project about to move quickly and our new basement walls made us excited and very happy to have our dream house being built by Urban Tech Homes Ltd., in the perfect neighborhood to raise our new family member in.
Our house on October 1, 2005
In November, we met the Architect on site and noticed that nothing had happened in the past couple of months. We couldn’t figure it out as Marcello Spoletini, Urban Tech Homes Ltd., or Green Tech Construction hadn’t told our Architect or us that there were problems. Marcello Spoletini, Urban Tech Homes Ltd., and Green Tech Construction were always hard to reach via telephone or cellphone but when we did contact Marcello Spoletini he always assured us that minor delays (which were out of his control, such as concrete powder being unavailable to him) were delaying the house but that things would be back on track shortly.
Our house in November of 2005
In December, my wife and I stopped by the house to take pictures of the project before our Christmas vacation. We would be gone for two weeks and wanted to see how the house coming along before we left. We were saddened to see that again, nothing had happened since September. Marcello Spoletini told us that some slow downs had happened. The sole truck for Urban Tech Homes Ltd., and Green Tech Construction had broken down and the Canmore project was behind schedule. Marcello Spoletini told again that within days, the pace of Urban Tech Homes Ltd., would pick up over the Christmas break and things would really start moving. When we got back home from our break we stopped by the house again to find lots of snow on the site, but sadly no one had been on-site during the Christmas break. It was clear we were not going to be moving-in anytime soon and that our original contract with Marcello Spoletini and Urban Tech Homes Ltd. had incorrect milestone dates and completion dates.
Celtic Contractors begin to install the trusses and Warmboard even though the basement walls are still not filled completely with concrete.
The new year started off with a notice in the mail that a sub-trade from a previous project was trying to garnish Marcello Spoletini, Urban Tech Homes Ltd. and Green Tech Construction to receive money for unpaid services. We were alarmed and forwarded the information to our Architect and lawyer. I also launched this website and decided that perhaps we could help Marcello Spoletini, Urban Tech Homes Ltd. and the project by generating some great publicity for the project on-line and stopping by everyday and photographing the progress. I would collect links to eco-friendly resources and other green building projects and help others who may be building similar projects or developing similar plans. I hammered out a schedule with Marcello Spoletini and Urban Tech Homes Ltd. to move things forward: I found out who would be supplying gravel for the basement, who the plummer Urban Tech Homes Ltd. was supplying, who the electrician Urban Tech Homes Ltd. was supplying, and who the framers were. Marcello gave dates and times that all his sub-trades from Urban Tech Homes Ltd. would finish key tasks. We set a goal for Urban Tech Homes Ltd. and Marcello Spoletini to have the back-fill in around the house by January 20th so we could begin working on the main floor.
A new year but old story – no workers and no work.
Our contract said the house would be finished on January 1, 2006. This is at the end of January and no work has been done since Christmas.
After the first couple of lunch meetings, I soon noticed a disturbing trend. Marcello Spoletini, Urban Tech Homes Ltd., Green Tech Construction or any sub-trades were never on-site and there were no signs of work. I met the neighbor one day and she said that she rarely saw anyone working on our project. On another day I met an electrician contracted by Urban Tech Homes Ltd., but he hadn’t seen the house plans and wasn’t sure what exactly he was supposed to be doing. When the end of January came, the basement walls were again pretty much the only thing still on-site and another important milestone for Urban Tech Homes Ltd. would clearly not be reached.
Marcello Spoletini gave us confidence in Urban Tech Homes Ltd. when we finally talked to him again. Macello Spoletini said that the housing boom was causing all kinds of problems and that we would have to make plans to work around the boom. Marcello Spoletini said that Urban Tech Homes Ltd. could get framers in to start the floor and that would at least progress things while we waited for other sub-trades. Marcello said that Urban Tech Homes Ltd. could only supply one framing company, Celtic Contractors from Canmore. We didn’t know what to expect from the rag-tag collection of guys that Marcello Spoletini personally drove into Calgary from Canmore each day (Marcello Spoletini lives in Calgary, 90 minutes each way from Canmore) but he said they were great and worked fast. We were also nervous that these would be the ”experts” who would be installing our Warmboard product, a material that Marcello convinced us to use that was very expensive and had massive warning instructions about incorrect installation of the Warmboard product. Clearly, Celtic Contractors had little, if any, professional construction training.
Early February 2006. We brought this supply of wood for Celtic Contractors but it mostly sat exposed to the elements.
Celtic Contractors
Celtic Contractors worked on our house for roughly four days straight and then we didn’t hear from them again. We got a hold of Marcello Spoletini and Urban Tech Homes Ltd. and were informed that the entire crew came down with the flu and hadn’t been able to work for over a week.
At this point, we knew that the relationship simply wasn’t working with Marcello Spoletini, Urban Tech Homes Ltd., or Green Tech Construction. We had to find a new contractor to finish our house. The baby was arriving in a couple of months and we had to reluctantly find an apartment to bring him home to. Incredible for us, this website actually put us in contact with our new contractor and all his references came back glowing. We visited a show-home he was building in Calgary and we were blown away by the quality and craftsmanship of his work. We checked in on the Canmore project that Urban Tech Homes Ltd., had been working on and sadly found an almost identical story as ours. Work was progressing at a snails pace, the owner was project managing the entire process and had even found his own laborers after the Urban Tech Homes Ltd. sub-contracted labor failed to show up. The home owner also had to repair or re-do some of the work done by Celtic Contractors.
The end of the relationship
To end our relationship, we gathered and contacted all the invoices that Marcello Spoletini had billed us for from Urban Tech Homes Ltd., and Green Tech Construction. Our lawyer told us that we should call everyone and make sure that the sub-trades Urban Tech Homes Ltd. had billed us for had actually been paid. We found out that the largest invoices, such as the trusses, the house demoltion and the original excavation had actually never been paid by Urban Tech Homes Ltd even though Marcello Spoletini assured us they were. Each of these companies were desperate to get in touch with Marcello Spoletini.
Dismantling the Ramsay House Project, April 2006
Starting over again
Our new contracter started to work immediately and wasn’t happy with what he had found. The walls had become shifted, concrete pads were in the wrong place and Celtic Contractors had installed the trusses and the Warmboard product completely wrong. In fact, Celtic Contractors didn”t follow the detailed instructions supplied by Warmboard and glued the boards to the
trusses incorrectly. Both the Warmbood products and trusses had to be destroyed to be corrected. The first few months for our new contractor would be to dismantle almost the entire project by Urban Tech Homes Ltd., Green Tech Construction and Celtic Contractors. In May of 2006, our house was again reduced to the basement walls that were first put up in September. Despite repeated promises by Marcello Spoletini to pay the companies that Urban Tech Homes Ltd., had invoiced us for, major debts remain unpaid even though we had paid Marcello Spoletini, Urban Tech Homes Ltd., and Green Contractors promptly whenever we received an invoice for the house project.
In summary, we have learned a lot from this project and hope others do not get victimized by Marcello Spoletini, Urban Tech Homes Ltd., Green Tech Construction or other ethically challenged contractors.
How can you protect yourself from bad contractors?
1. Get as many references as you can before you even consider a contractor. Not only phone those references but check on the projects yourself. All construction projects fall behind schedule but find out the reasons why things were delayed in past projects.
2. Marcello Spoletini told us that Urban Tech Homes Ltd. would supply three sub-trades for each task and we could choose the one we liked. We thought that was great customer service and was a big seller when we decided to go with Urban Tech Homes Ltd. When we needed a trade on-site, Urban Tech Homes Ltd. usually only had one option and there were no options available
in Calgary on such short notice.
3. Keep tabs on suppliers and sub-trades that you are billed by your contractor for. Check that large bills have been paid.
4. Watch for multiple company names and requests to write checks to new business names. Our lawyers have told us that Marcello Spoletini’s multiple company names such as Urban Tech Homes Ltd. and Green Tech Construction were used to further reduce liability to Marcello Spoletini when he doesn”t pay his bills.
5. We learned the painful lesson that it is virtually impossible to take small contractors to court effectively, especially when they use multiple company names. After the pain, distress and possible rulings not in your
favor, the chances of getting any money out of the contractor are almost zero.
6. We learned that there are people who are willing to look you in the face and gladly take tens of thousands of dollars away from young couples with a new baby.
[tags]Liens,Contractors,Lawyers,Attorney,suit,claims,buliding,construction[/tags]
What's happening at www.ramsayhome.com 
Jo said
Great website with some really useful information, unfortunately I can’t afford to make a donation as we are drawing to the end of build now. We had a baby too right in the middle of it all so I really do know how you feel! I think we’re just coming out the other side now 🙂 Best of wishes to you all, it will be ok in the end. Just keep swimming xxx
Shooflyshoo said
It is amazing how many bad contractors there are out there. I bought my place last year and have been looking for a RELIABLE contractor ever since. Frankly, all of the best ones have projects lined up for months. It’s only the companies that just started or the one’s of dubious character that are available to start my project now. While I like the idea of helping a new/small business get its start, being a small business owner myself, I am nervous about making my own home the guninea pig. As for the other contractors your blog certainly shows what I have to be afraid of.
I’ve seen some other “good” depictions of terrible contractors. Take a look at http://mybadhouse.blogspot.com. Seems like this lady in Oregon got taken twice. First, by her contractor who did an awful job building her new house and refused to fix it after they had already been paid. Second, by her county building inspectors. Apparently they signed off on all of the contractors work at first. Then they came back and told her that the work actually FAILED inspection. Too late! She had already paid the builder just like you did. And the county won’t force the contractor to go back and fix things. Aren’t these guys bonded for a reason?!
It’s enough to make me want to pick up my own hammer and give it a try. At least then the screw-ups would be mine own. Just kidding, there’s no way I’d try to do major construction on my own. Thanks for sharing your story. That’s one more bad contractor who I know to stay away from. Good luck with your house and your new family!
Leslie Miley said
I am very very saddened to hear about the issues with your contractor. It does seem to be a problem that knows no borders as I have a similar story regarding missed dates, sub contractors not paid, and work that needed to be redone. You can read some of it at http://pasostrawbale.blogspot.com
I do wich I could help you but take solace in the realization that the internet is leveling the playing field and driving people like your bad contractor and mine to the margins of construction.
Good luck, and if you are ever in California and want to stop by, send email.
Leslie
faith said
He seems like such a nice man when you first meet him, quiet, reserved, and somewhat intellingent, not bad looking for an Italian, interested in what you have to say……we were all fooled by him. Some of us believed in him a little longer than others but we all soon came to the same page, LIAR, THIEF, CON ARTIST and SOCIOPATH and these are mild descriptions of this so called man. It is painful for me to now read what this man has done to your own young family, absolutely no regard or remorse for what he has done to you or his extended family. I so want to believe in Poetic Justice and what goes around comes around. May Marcello Spoletini get exactly what he deserves.
Sharon said
Why doesn’t anyone seem to know about the Fair Trading Act handled by Government Services. The contractor is investigated and charged for not conmplying to the law. Stiff fines and jail terms are issued. From there you have a court order from federal court to sue the greep which stands stronger than just suing. Yes, the chances are we will never get our money back, but if you all look deeper into the bad contractors habits you will find many ways of having him charged. Where there is fraud and bad business in one place there will be fraud and bad business in another. For instance: my case involved a contractor who received 20 000 bucks for a bad job. I found out he did not have a licence, was not bonded nor did he have a prepaid license. He was also taking money by cash and that is considered laudering. From there he will be investigated and charged and taken to Queens Bence. From there I checked further and discovered he did not have a GST nor was he even registered with Revenue Canada. Nor does he have a Canadian Citizenship. Cheeez, is this guy in trouble. Makes me feel good now even if I have to fix all that he destroyed but you know, I think that I will go and visit him in jail and asked him how it feels to be held hostage. Can’t wait. There is alot that we all can do to at least punish these guys. Do it! It takes a bit of your time but it is worth seeing them sweat a bit or sweat alot in a jail cell. Sharon