ComplaintsforMagnolia Developments, LLC

• Initial Complaint

  02/01/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  **** ****** **** ** **********a is a new house that ****** ***** from magnolia llc built for me in 2023. As a general contractor I was charged cost plus by magnolia llc.. During the construction we noticed that the hvac was not working and there was multiple leaks throughout the pipes in the wall from siding nails that needed $3510 to repair by hvac company. I was recommended by the general contractor that I can pay and get it fix and later try to go through the insurance. Subsequently I found that the general contractor has no responsibility for the damages and I have been referred by ****** ***** to the subcontractor ***** ******** construction that has done the siding job at that time. Over the last 6 months I have tried multiple times to contact the subcontractor and even the general contractor about this issue but I had no answer even returning my calls or emails. Frustrated as a customer I am wondering who is responsible for the damages!

  Business response

  02/08/2024

  It is a shame that the owner is resorting to these tactics! He had a cost-plus fee contract to which he was charged a minor builder fee to help control build cost. Under his contract he is responsible for any and all cost including any defect work that is not paid by the sub-contractors. Prior to starting the home construction, ******* ********* pulled his own builder's risk policy for the home construction to try and save cost instead of allowing the builder to pull the standard builders risk policy which covers builder's risk items such as this. When ******* submitted the insurance claim to his insurance provider for the incident in question, they informed him that they would not pay the claim and essentially, he realized he purchased a horrible insurance policy with very limited coverage. Instead of taking ownership of his to shortcomings, he decided to take the approach of reaching out to BBB. What a shame. The real reason you are getting this message from him now is that I built his house for the low price of $392,000 over a year ago and he listed the house for sale one year ago for $725,000. His greed has caused him to overprice the house so it didn't sell and now that it still hasn't sold due to him over pricing it, he is trying to get any measure of money from anywhere he can.

  Customer response

  02/16/2024

  
  Complaint: ********
  
  I am rejecting this response because:

  First, I want to let you know that I appreciate your intention to try to save me money, however I do not appreciate is being accused of something that is not true. Second, the reason I had contacted BBB regarding this matter was because of your lack of timely response to my text, phone calls, and emails for the last 6 months!
  
  When we initially had found out about the damage that the nails had done to the HVAC pipes you told me that your insurance would not covering it, and that I should contact my insurance company. While contacting them, my insurance company said builders risk insurance doesn’t cover labor related issues and instead that I would need to contact my contractor/subcontractor. You then proceeded to give me your subcontractor's phone number to contact regarding this pressing issue, and yet he is also not nonresponsive! The insurance coverage that I had purchased was exactly what you and the bank had asked me to get.
  
   Even your own contract says this:
  1.7–the builder will maintain general liability and workman’s compensation insurance as part of contract budget.
  1.8– the foundation survey and builders risk insurance will be the responsibility of the owner as part of budgeted general conditions.
  
  I honestly find it a little comical that after the last few years working together and me paying you everything that you asked for, you are now saying that I am trying to make money out of you, or that you don’t have any responsibility as the builder and general contractor. I was hoping to have a fruitful relationship with you and work on subsequent projects, but it seems as if that may not be entirely possible if you truly believe what you are sending me. 
  
  

  
  Sincerely,
  
  ******* *********

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