My question involves a consumer law issue in the State of: Colorado
I am in the process of preparing a Demand Letter (by any other name) and would appreciate expert advice.
Background/context: I am the project manager for new construction on a custom residence. The work of the plumber subcontractor doing the heating system has been generally unsatisfactory but for complicated reasons he was not sent away earlier. A few months ago his work resulted in heating system water leaks that added up to about $25,000 in damages (estimate of labor and materials) in a custom residence.
The plumber's insurance adjuster came to the scene and took notes. Since I was out of the territory my chief carpenter made a quick non-binding draft repair estimate with some of the likely damage points, and provided that to the adjuster. The adjuster and the insurance company were made aware that the carpenter's estimate was not the project manager's position on the matter.
The insurance company prepared a lowball offer to settle but everyone here spat coffee out their noses from the absurdity of that lowball offer. As project manager I notified the plumber's insurance company that (1) their offer was based on speculation and was incomplete and unacceptable, that (2) revised estimates would be made once the damaged areas were opened up to assess the depth of impacts, and (3) we would perform the repairs and retain detailed accounting of materials and labor to do so. The plumber's insurer did not object in writing (or any other way) to us to indicate that an actual-cost approach would be unacceptable. We took this failure-to-object as their tacit approval of our going ahead with reimburse-the-actual-cost after the work was completed.
It is important to note that the plumber at first tried to blame everyone else, but ultimately confessed via email. He then promised to effect the repairs, and apologized. His insurer recognized his culpability and did not blame anyone else, and in preparing their estimate for settlement, effective conceded uncontested blame on the part of the plumber. The plumber changed the improper (failed) heating system connectors throughout the system.
The plumber's insurance company made additional email comments concerning their offer, and they were reminded in writing that their estimate in the absence of actual detailed damage assessment was unacceptable, and that repair work would be done according to actual costs and subsequent billing. Again, no objection by the insurance company. Tacit approval to proceed. The plumber's insurance company even sent their adjuster to the site once again to observe the work in progress, and to authorize additional opening of walls to inspect for mold and water damage. Again, the plumber's insurance company and specifically their adjuster were very much aware of the process: discover extent of damage, inform insurance of actions being taken, conduct repairs, retain records showing actual-cost. No stated objections to this by the plumber's insurer.
Most of the rest is predictable.
Nearing completion of repairs, the plumber's insurer was given a "ballpark" figure showing repair costs to date, and which known items could not be economically repaired. As of this time the repair work had taken 2 months. That is two months that the owner could not use the house. There are costs when such a delay is involved. The insurer was informed that the repair estimate did not include compensation for the two month delay caused by the plumber's errors.
Naturally, after the work was completed, the insurer said essentially, hell no, we're not going to compensate you for what you have paid to effect the repairs. Well, maybe a little bit of it.
It gets worse: the plumber was obligated (and paid) to remain on the job until the regional building authority signed off on the final heating inspection. The plumber lied to us and said that he had achieved that final inspection signoff but a quick check with the authority revealed that he was lying. Plumber subsequently stopped communicating and moved to another job. But we know where he and his half-million in assets are now located. The failure of the plumber to achieve final heating inspection has also cost us and the project cannot be completed until we hire someone to finish the job properly. The plumber's insurer was informed of their client's lying about the successful completion of the heating inspection.
Enough background. Now the questions.
I'm preparing the usual documentation for the state licensing agency, saying nothing that I can't absolutely back up with unambiguous evidence.
I'm preparing a Demand Letter, to send to the plumber via certifiable means (jump in on this item, anytime). It is my understanding that a properly executed Demand Letter should precede an attempted civil recovery.
In the Demand Letter I expect to describe every performance failure since this plumber started the job. He left a lot of minor stuff not completed, and some of what he did is expected to cause additional damage in the near future. I'll give the miscreant 7 working days to reply in writing, and inform him that unspecified adverse events, such as the equivalent of flying monkeys, may come his way if he fails to adequately address those items, including completing the work for which he was paid. And that he is liable for the $25K or so in completed repairs. And that he may be liable for unsatisfactory performance items that will require rework to prevent additional near-term damage. And that he may be liable for the cost impacts of the delays involved in (1) the repairs and (2) the time lost due to his failure to get approval at the final heating inspection. And for some legal costs if the demands in this letter are not satisfied. And pay for a portion of my blood-pressure medication.
I expect the plumber will ignore the letter. We are not dealing with a skilled, rational, or sentient being.
Does it make any sense to send a copy of the Demand Letter to his insurer? Any obligation to do so?
Looking for your wisdom, criticisms, and advice that doesn't involve arming the flying monkeys.
Thank you in advance !
I am in the process of preparing a Demand Letter (by any other name) and would appreciate expert advice.
Background/context: I am the project manager for new construction on a custom residence. The work of the plumber subcontractor doing the heating system has been generally unsatisfactory but for complicated reasons he was not sent away earlier. A few months ago his work resulted in heating system water leaks that added up to about $25,000 in damages (estimate of labor and materials) in a custom residence.
The plumber's insurance adjuster came to the scene and took notes. Since I was out of the territory my chief carpenter made a quick non-binding draft repair estimate with some of the likely damage points, and provided that to the adjuster. The adjuster and the insurance company were made aware that the carpenter's estimate was not the project manager's position on the matter.
The insurance company prepared a lowball offer to settle but everyone here spat coffee out their noses from the absurdity of that lowball offer. As project manager I notified the plumber's insurance company that (1) their offer was based on speculation and was incomplete and unacceptable, that (2) revised estimates would be made once the damaged areas were opened up to assess the depth of impacts, and (3) we would perform the repairs and retain detailed accounting of materials and labor to do so. The plumber's insurer did not object in writing (or any other way) to us to indicate that an actual-cost approach would be unacceptable. We took this failure-to-object as their tacit approval of our going ahead with reimburse-the-actual-cost after the work was completed.
It is important to note that the plumber at first tried to blame everyone else, but ultimately confessed via email. He then promised to effect the repairs, and apologized. His insurer recognized his culpability and did not blame anyone else, and in preparing their estimate for settlement, effective conceded uncontested blame on the part of the plumber. The plumber changed the improper (failed) heating system connectors throughout the system.
The plumber's insurance company made additional email comments concerning their offer, and they were reminded in writing that their estimate in the absence of actual detailed damage assessment was unacceptable, and that repair work would be done according to actual costs and subsequent billing. Again, no objection by the insurance company. Tacit approval to proceed. The plumber's insurance company even sent their adjuster to the site once again to observe the work in progress, and to authorize additional opening of walls to inspect for mold and water damage. Again, the plumber's insurance company and specifically their adjuster were very much aware of the process: discover extent of damage, inform insurance of actions being taken, conduct repairs, retain records showing actual-cost. No stated objections to this by the plumber's insurer.
Most of the rest is predictable.
Nearing completion of repairs, the plumber's insurer was given a "ballpark" figure showing repair costs to date, and which known items could not be economically repaired. As of this time the repair work had taken 2 months. That is two months that the owner could not use the house. There are costs when such a delay is involved. The insurer was informed that the repair estimate did not include compensation for the two month delay caused by the plumber's errors.
Naturally, after the work was completed, the insurer said essentially, hell no, we're not going to compensate you for what you have paid to effect the repairs. Well, maybe a little bit of it.
It gets worse: the plumber was obligated (and paid) to remain on the job until the regional building authority signed off on the final heating inspection. The plumber lied to us and said that he had achieved that final inspection signoff but a quick check with the authority revealed that he was lying. Plumber subsequently stopped communicating and moved to another job. But we know where he and his half-million in assets are now located. The failure of the plumber to achieve final heating inspection has also cost us and the project cannot be completed until we hire someone to finish the job properly. The plumber's insurer was informed of their client's lying about the successful completion of the heating inspection.
Enough background. Now the questions.
I'm preparing the usual documentation for the state licensing agency, saying nothing that I can't absolutely back up with unambiguous evidence.
I'm preparing a Demand Letter, to send to the plumber via certifiable means (jump in on this item, anytime). It is my understanding that a properly executed Demand Letter should precede an attempted civil recovery.
In the Demand Letter I expect to describe every performance failure since this plumber started the job. He left a lot of minor stuff not completed, and some of what he did is expected to cause additional damage in the near future. I'll give the miscreant 7 working days to reply in writing, and inform him that unspecified adverse events, such as the equivalent of flying monkeys, may come his way if he fails to adequately address those items, including completing the work for which he was paid. And that he is liable for the $25K or so in completed repairs. And that he may be liable for unsatisfactory performance items that will require rework to prevent additional near-term damage. And that he may be liable for the cost impacts of the delays involved in (1) the repairs and (2) the time lost due to his failure to get approval at the final heating inspection. And for some legal costs if the demands in this letter are not satisfied. And pay for a portion of my blood-pressure medication.
I expect the plumber will ignore the letter. We are not dealing with a skilled, rational, or sentient being.
Does it make any sense to send a copy of the Demand Letter to his insurer? Any obligation to do so?
Looking for your wisdom, criticisms, and advice that doesn't involve arming the flying monkeys.
Thank you in advance !
Non-Performance and Breach: Subcontractor- Plumber from Hell
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