I have calmed down slightly but want to make sure that there is no one else is taken advantage of like I have been since November. There is a guy named "Heath" Martinez (Anthony Heath Martinez) with Platinum GC or Platinum General Contractors/Contracting and he is a horrible contractor. We hired him in November 2013. We chose him as there were multiple trades and facets to an insurance claim from the storms in August of 2013. I did not want to take on the management of multiple trades as I have my own business and am busy enough. We were not smart enough to verify GL insurance upon the start of the project, but when we noticed that the insurance certificate expired Dec. 22 2013, my wife called in January to see if the policy had been renewed. During this call the insurance broker told my wife that the policy had not been renewed, but if the project had started during the valid dates it would be covered. As the progress deteriorated we again checked a few weeks ago and were told a different story. The broker told my wife that it appeared that he had taken out the policy in Dec 2012 and only paid the first installment and that the carrier cancelled the policy in February 2013 due to non-payment. The broker gave us 2 reasons why this information did not come up when we called in January 2014 to confirm the policy. #1. The carrier didn’t update the broker of non-payment and cancellation or #2. The broker didn’t update their computer records when they received the update from the carrier. I called back to get clarification and they will now not confirm or deny in writing or verbally that the coverage was good or not good for the time frame I am requesting unless my attorney writes a letter requesting the information.

Long story as short as I can, Here we go:

The project has been going on since November of 2013 and the deadline for him to contact my attorney was 5/8/2014 with an answer on 5/10/2014. He has our insurance money and left us with a shoddy roof decking replacement and tiger paw felt only. I called for inspection on the decking last week and the inspector noted it can’t be inspected with felt on the decking and looked in the attic and explained that it was very bad workmanship and would not pass and might have to replace the new or at least remove all of the decking and reset it properly and fix valleys and hips. We have not had shingles on our roof since March 2014. He eventually erected the fence and retaining wall which is decent in its overall appearance, but still has issues (all gate hardware is not completed and the retaining wall still has imperfections that were not corrected). He never installed the retractable gate with motor that was agreed to in our contract. He never installed the gutters obviously as they will go on after the roof. He contacted and hired a sheet rock sub and then when it came time to pay him, decided it was too high and basically told the guy to sue him and he wouldn't see a dime. No one with Platinum was present during the 3 days after the project began to manage them or do the math that it was over budget. This sheet rock sub is now pursuing a theft of services charge against Heath and using his option to lean my property for sheet rock repair. Platinum almost reached this point with another sub for the irrigation changes made in the back yard for the sprinklers. I had to get involved and make sure a resolution was reached as he physically threatened the guy over text message. I have yet to get any of the electrical conduit replaced on the fence or any of the lighting that was to be installed as I previously had lighting along the fence. There is now sheet rock damage throughout my house as I have not had shingles in over 2 months and the Garland area received several rain storms during this time period.

He has been paid over $57,000 to date for a concrete retaining wall, sprinkler modification, 8' BOB fence partially completed, fascia replacement twice with an extremely poor roof decking replacement with felt. He didn't take his time analyzing the fascia job and installed it the first time and didn't wait for the decking to be approved and lost the height of the wooden slats under the original decking for the old wooden shingles and therefore was paid by insurance twice to install fascia.

Here is the golden moment:
Another customer, he gave my address to in March for a reference on a fence, showed up at my door and said Platinum was supposed to show up on the 28th after the customer gave him a check on the 17th as a deposit for the project he hired Platinum for. Platinum didn't show up when scheduled and it gave the customer concern, so he decided to come to my house. I explained what was happening to us and we decided to call the police while he was at my house. The customer called Platinum and left a message that he would be going in a different direction and would like his $5,000 back he had given him. Heath had the audacity to show up at his house without acknowledging the call and began trying to take his fence apart and remove it. Plenty of time has passed and the other home owner has yet to receive his $5K back.

My attorney wrote and supplied a settlement letter to Platinum GC "Heath Martinez" on Tuesday 5/6/2014 for him to come finish the project and “dry the roof in” immediately. Heath/Platinum didn’t respond to any communication with my attorney until 4 days later. He still has not come to my house to temporary and “dry in” the roof on my house.

Here is the weird part.
When my wife went to the bank to deposit the first check she was told that Heath was not on the Platinum bank account. My wife was told by the bank teller that Chris Martinez, Heath’s nephew, is actually the person who has the bank account associated with Platinum. Heath's wife or girlfriend, I’m not sure which, but do know they just had a baby together, also was involved by picking up checks and signing the permit for the decking inspection. This permit was only pulled after Platinum was busted for not pulling one by an inspector across the street during another inspection. They never pulled a permit for the fence changes that we were doing and told me multiple times that they were not required. I have been told by the City of Garland that they are required, since changes were made to the existing fence line.

I just want to share with everyone and hopefully if you see anything from this guy move forward with EXTREME CAUTION..

If you see the number (214) 536-7098, watch out. Platinum’s main form of marketing is the Val-pack mail outs.

Please pray for me and the family as it has been hard to be scammed for so much money and figure out how to pay for the repairs before my home becomes a major issue and liability.

Gig 'Em

Jason


[This message has been edited by jcurtis2979 (edited 5/12/2014 10:29p).]

Bump for my buddy!

http://www.spike.com/shows/catch-a-contractor

Seriously though - sorry that happened to you guys. I am terrified about the first time I have to have major work done because it seems like these stories are way too common.

I see this more and more in my line of work. Very sad!

good luck getting it all fixed

Your attorney should look into a claim against the insurance company. You relied on a statement that turned out to be a misrepresentation. This may get into issues like 3rd party beneficiary, so he'll have to go to the library, but it would be worth a few hours of his time in my opinion. The point here is that the insurance company HAS money you can collect.

quote:

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Your attorney should look into a claim against the insurance company.

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I'm not a lawyer but this is exactly what I've been thinking as soon as I read your line about what they told your wife.

Thanks everyone for the ideas!

My attorney and I are still working through it and I am paying out of pocket next week to have the roof decking repaired and the roof completed by another company as I don't know how many more North Texas rainstorms my house can handle before I have catastrophic issues beyond the damage I have already incurred.

Tips for working with contractors (from someone who works for a contractor):

1. Always hold retainage. Retainage is a specified percentage that is withheld from a contractor until the job is turned over and the owner is satisfied. If he does crappy work or doesn't finish, he doesn't get paid in full. It is usually anywhere from 5-10%, but for something like this you may go with 20%. Retainage is perfectly legal as long as it is in the original contract (and usually expected).

2. Get him to give you a schedule of values. Think of this as an itemized bill for everything he is doing for you. Every aspect of the job should have an associated value (Framing-$500, Drywall-$450, Tape/Float-$300, etc). It should ideally be broken down into materials and labor. This will give you a very good idea of what he should and should not be billing for. If something done really early, like demo or framing seems really high, question it because it probably is. It's called front loading and one way contractors get money early in a job so they don't front their own for the entire job. It's very common in commercial construction and more easily hidden, but on a smaller job like a home renovation or repair, it might be the difference between a guy finishing and deciding to run off while he's got more than he's owed.

3. Never pay in full at the beginning of a job. Never make large down payments either. Fronting money and having to manage cash flow is just part of being in construction. Any contractor who wants payment before work or a large down payment is not worth your time, no matter how low their bid/estimate is. Tell him he can bill for purchase orders as he buys materials AND THEY ARRIVE AT YOUR HOUSE, or he can find another house to work on. Pay monthly based on purchase orders and how much work has been done. Whatever his contract is for, pay based on that and the schedule of values. If he has a contract for $1000 with $500 in labor and $500 in materials, looks 50% done on labor, and has submitted a PO for $250 in materials that you have verified are at your house or installed (never, under any circumstances, let him take materials off site that you have paid for), you should pay him $450 after 10% retainage. When the job is finished, you're happy, and everything is good, then he gets his retainage money.

4. Always verify insurance and bonding. Always. Also, demand that their insurance/bonding company sends you a certificate of insurance/bonding stating the terms of the insurance and the bond. Never accept one from the contractor themselves, only from the insurance company. That is them committing to you that they are backing this person and they have paid. Don't take them directly from the GC because many of these certificates are fake or out of date.

5. Have a liquidated damages clause in your contract. Have an end date and hold them to it. Use the words, "Time is of the essence," and specify an amount that the contractor will be charged for each day (specify weekday or calendar day) they are late.

[This message has been edited by ABATTBQ11 (edited 5/12/2014 3:07p).]

Always avoid paying up front. Control the money to get results.

File a complaint with the BBB too.

quote:

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2. Get him to give you a schedule of values. Think of this as an itemized bill for everything he is doing for you. Every aspect of the job should have an associated value (Framing-$500, Drywall-$450, Tape/Float-$300, etc). It should ideally be broken down into materials and labor. This will give you a very good idea of what he should and should not be billing for. If something done really early, like demo or framing seems really high, question it because it probably is. It's called front loading and one way contractors get money early in a job so they don't front their own for the entire job. It's very common in commercial construction and more easily hidden, but on a smaller job like a home renovation or repair, it might be the difference between a guy finishing and deciding to run off while he's got more than he's owed.

3. Never pay in full at the beginning of a job. Never make large down payments either. Fronting money and having to manage cash flow is just part of being in construction. Any contractor who wants payment before work or a large down payment is not worth your time, no matter how low their bid/estimate is. Tell him he can bill for purchase orders as he buys materials AND THEY ARRIVE AT YOUR HOUSE, or he can find another house to work on. Pay monthly based on purchase orders and how much work has been done. Whatever his contract is for, pay based on that and the schedule of values. If he has a contract for $1000 with $500 in labor and $500 in materials, looks 50% done on labor, and has submitted a PO for $250 in materials that you have verified are at your house or installed (never, under any circumstances, let him take materials off site that you have paid for), you should pay him $450 after 10% retainage. When the job is finished, you're happy, and everything is good, then he gets his retainage money.

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In a dream world, this works. In the real world, good luck finding a contractor to work with you. Even draw schedules for new home builds typically don't work that way.

Parts of what you said are true - never pay all upfront, schedule of values is important as is a fee schedule that sets milestones and progress payments. But for the most part, there aren't too many out there that are going to let you nickle and dime them on every part of a job, nor control money for materials and payment in the way you describe them, no matter how financially secure they are. A contractor fronting money for labor is one thing, fronting money for materials is another. Very few are going to front $10K in cabinets or $5K in appliances that take 4 weeks to deliver.

ALWAYS have a referral from several people you trust.

A good GC isnt going to itemize his entire GD job. Thats ridiculous and usually only results in some asshat price shopping him. You don't need that info. You need the cost for the job or the cost for each major step like paint, drywall, framing, etc. You will get required info like for fixtures or carpet, but to itemize the whole lot....no. Quite frankly, even as a consumer I don't think its any of my business whether he bought a toilet for 100 bucks, or 50 bucks on sale and charged 100....I need to know how much my bathroom is going to cost to finish and if it sounds too high, THEN we can figure out why...maybe the tile is expensive...maybe I don't need a super mega turd pounder 4000 or gold leafed toilet paper holders. I kind of feel like if Im going to price shop a GC and beat him up over his pricing or profit margins, then maybe I ought to do the work myself. You should get a total for the job and a detailed list of what is going to be done.

As for paying up front...of course thats a bad idea. Set up milestones. All of the contracts I have ever used for things like this are set up such that I pay a percent or a portion when certain steps are completed to my satisfaction...framing...drywall...electrical...etc.

As for retainage, its nice, but not always amenable to your GC. If you have a good one, then you have a legal contract with verbiage and warranties such that any issues are covered for X number of days or obvious miscues are corrected.

If you end up with some sort of hand written job on a napkin...well, that's kind of a problem.

The deadline clause is good. On one of my major projects I was not savvy enough to work that in before hand. I think I mentioned it, and there was some push back, so I did not pursue it. The project took longer than expected. Not crazy long...just longer. However, I also under no circumstance ever had a feeling my GC would bail...ever. Part of that was because I was paying in pieces and the work that was completed along the way was complete and right and he was OK with the last major percentage being held until I was pleased with the work.

[This message has been edited by BrazosDog02 (edited 5/13/2014 2:34p).]

[This message has been edited by BrazosDog02 (edited 5/13/2014 2:36p).]

Thanks everybody again!

We are going to move forward with a different roofing company to complete the roof next week. This will resolve a lot of our tensions when our roof is dried in and no longer leaking when it rains.

Here we go!

read this specifically http://law.onecle.com/texas/property/53.255.00.html

retainage is law per the texas property code though there is no enforcement. contractors should have it in their subcontracts. it limits the liability of the owner to the retainage amount withheld but if not withheld you may be liable for all claim amounts http://opper-gambrell.com/blog/?p=51

the property code is very specific about how a lien is perfected. if you haven't already, talk to your attorney about what to expect if you terminate for cause. it should start the clock on the time for a lien to be filed. also discuss what actions might be taken against the contractor. hopefully you have an executed contract of some sort.

not all contractors are bonded but ask to be listed as a certificate holder for their insurance. it won't add you to the policy but the insurance company should notify you if the policy in cancelled.

I'm not an attorney and this is only my interpretation of the texas property code based on some experience. only my $0.02

We had already put him on the clock and he refused to react to my attorney telling him it immediately needed to have temporary solution and FEMA rated tarping completed to stop the leaks into the house as it had gone on for over 2 months.

I have all the proper notification and offer settlement letters sent from my attorney.

He has not responded to anything about bringing this to resolution to my attorney.

Thanks for the info. I have sent it on for review.

For all that live in DFW.

Watch channel 11 tonight at 10 pm for the story to make sure no one else is taken advantage of by this guy.

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ALWAYS have a referral from several people you trust.

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Sounds good in theory but do you really have several people you trust that can give a good evaluation of a home remodeler or GC?

Here is the story from last night on the roofing industry in Texas.

http://dfw.cbslocal.com/2014/06/17/i-team-texans-a-need-license-to-cut-hair-but-not-to-repair-roofs/

Wow, he has been convicted 10 times for fellony fraud??? What a scum bag.

I was poking around the Texas Department of Licensing site earlier today and was shocked to see that GC's still do not require licensing.

When I was in the process of studying and testing for my HVAC contractor's license, they were talking about introducing GC licensing. This was roughly 9 years ago.

But you need a license to cut hair. Ridiculous

Yes it is pretty ridiculous. Please pass on to any family in DFW to protect them. There are plenty out there.

I feel your pain. I got taken for about 10k by a contractor in Tyler, TX, and he was recommended by several people I knew. He took my money to finish some other jobs, and didn't have enough new jobs coming in, or money, to buy any supplies or pay for any workers for my job. I put up with his b.s. and excuses for about 6 months before I had to hire another contractor. I've since sued him in small claims court, and won, but I doubt I will ever see a dime of my money back.

Worst part is that I know this guy is still in business, and still taking other peoples money.

It appears that the person in Rockwall has come to some settlement with Platinum. So this part of the story has changed from the original.

I was unaware of this until today.

[This message has been edited by jcurtis2979 (edited 6/18/2014 4:43p).]

[This message has been edited by TexAgs staff (edited 6/30/2014 6:43p).]

Commercial General Liability policies do not cover a contractor who simply does a bad job or does not finish a job. Their work product is specifically excluded under the policy. For that, the contractor would have to be bonded. For example, CGL polices provide coverage if a contractor breaks a plumbing line and floods your home, basically if they are negligent and cause damage to your home other than what was included in their original scope of work. We get many people who call in not satisfied with the paint color, cabinet quality, etc, or to report that the contractor left with their money and didn't finish the job. Sorry, thats not what the CGL is for. MAKE SURE THEY ARE BONDED.

Thanks for the info! Yes it stinks that it appears that he personally doesn't own anything or have his name tied to anything.

Maybe what the state should do is to begin with a registration for roofers. This would cut out come of the B.S. for people like this if certified or licensed professionals ran the industry like MEP trades.

As a follow up to this never ending story:

My dogs kept running off because my backyard was not enclosed due to the unfinished project. My favorite dog was run over by a some of the sweetest neighbors we know. It was hairy for a week, but he came through and after surgery to replace his hip he is healing.

I have now installed a temporary fence to keep our animals on our property until I can complete the work myself.

As a follow up to this NEVER-ENDING STORY. I feel like Arturo in the 80's. Nothing was ever done about my project completion and the lack of money returned and now Heath Martinez has decided to change the name of the company a few times from Southern GC Corp. to Southern GC Roofing. I only learned of this as I attended the bankruptcy hearing today that I am sure he was not expecting me at.

At what point is enough, Enough??????? I still can't believe that I have to had to live through this situation but fortunately for my family we have made it through together.

If you are hiring a contractor make sure of the following.

#1. Insurance verified before contract signed.
#2. ZERO MONEY UP FRONT
#3. Confirm references for work performed before signing contract
#4. Payment schedule worked out beforehand

http://dfw.cbslocal.com/2014/06/17/i-team-texans-a-need-license-to-cut-hair-but-not-to-repair-roofs/

http://www.ripoffreport.com/r/Platinum-GC/Rowlett-Texas-75088/Platinum-GC-Heath-Martinez-Tony-Martinez-Tabitha-Brown-Kris-Brown-Southern-GC-Anthon-1275922

http://www.bbb.org/dallas/business-reviews/contractors-general/platinum-gc-in-rowlett-tx-90527371/complaints

http://texags.com/forums/61/topics/2476433

http://www.corporationwiki.com/p/2fm586/southern-gc-corp

http://www.corporationwiki.com/p/2fm6fn/tabatha-brown

http://www.complaintslist.com/general-contractors/southern-gc-corp/

http://www.ripoffreport.com/r/Southern-GC/nationwide/Southern-GC-Platinum-GC-Anthony-Heath-Martinez-Roofing-Scam-Dallas-Texas-1279439

Another suggest to do upfront would be to check the GCs tax status. You can do this at the Texas Comptrollers web site. Being in good standing doesn't make him good, but if he's not in good standing, walk away.


http://comptroller.texas.gov/taxinfo/coasintr.html

In this case, have you contacted Dave Lieber of the DMN?
He does the Watchdog column on Friday and loves to go after GCs. He's currently chasing the roofers in Rowlett that are ripping off the tornado victims.

http://www.dallasnews.com/investigations/watchdog/20160128-keeping-track-of-roofing-scammers-the-watchdog-finds-two-more.ece

Thanks for the info. I didn't think about the tax status but most of the scam artist might not even have one as they are running sole proprietorship and might not register as the EIN is not setup. Do you know this answer?

That is good news that the watchdog. I have not heard about him.

So are you posting this on multiple websites because you gave us a link to this thread!

yes sir. A few of the other victims have found this forum even though they are not Ags in the past. Figure if this is another link to help people know the truth then so be it.