New Breed Construction installs no roof but wants to be paidPosted: Updated:
PHOENIX - Richard Campbell is happy with his new roof he had installed in February.
Richard says his home insurance paid a lot of money to install his new roof after it was badly damaged from last year's big hail storm.
"It was a lot of hail and I didn't realize the damage it had done until later," Richard explains.
However, Richard says at first he initially didn't think too much about getting a new roof. That was until a roofing salesman who was roaming the neighborhood offered to inspect Richard's roof for free.
"They said ‘hey, we'll take a look at your roof and have your insurance company pay for it and get it fixed’," Richard tells 3 On Your Side.
The salesman was with a company called New Breed Construction and after discovering some damage, the salesman drew up what Richard calls a generic contract. He then told Richard to sign it and that he would be in touch with him.
"He wrote TBD on every line, to be determined I'm assuming that it means," Richard says of the contract.
The agreement did not have one price, a single dollar sign, or anything at all to indicate how much the new roof would cost.
According to Richard, he contacted New Breed Construction several times, but the business never did get back with him on a final contract.
He says all they would tell him is to not be worried. But he was worried. All he says he had was a piece of paper that said “To Be Determined.”
However, Richard needed a final number so he knew how much he and his insurance company were going to spend on his new roof. After New Breed Construction never got back with him with complete details or even a start date, Richard says he eventually had to move on by hiring another roofing company
That roofing company wound up installing Richard's roof and Richard says he was satisfied.
However, a year later, an attorney representing New Breed Construction sent Richard a demand letter saying Richard cancelled his agreement with the construction company.
As a result, the letter said New Breed Construction was entitled to be paid roughly $6,700 from Richard.
"They're holding me hostage for something they didn't even do," Richard tells us.
3 On Your Side took the agreement to Rhonda LaNue with the Arizona Roofing Contractors Association, an organization that tries to build consumer confidence in the roofing industry.
She says the agreement lacks the basic information that any roofing company should include in a contract.
"You've got to be kidding. This is not, to me, this does not seem like a professional operating business," Rhonda tells 3 On Your Side.
They are not the only agency concerned.
The Arizona Registrar of Contractors, which regulates contractors, wrote 3 On Your Side an email saying the contract violates their statutes in at least a half dozen different ways, including "failing to provide a total dollar amount."
As a result of 3 On Your Side's involvement, the Registrar of Contractors is launching an investigation into New Breed Construction. Richard says that's good news for him other homeowners in the same predicament.
"If they're doing this to other people I really just feel like they should stop. It's not right, it's not ethical and it's not fair. It's not good business practice," Richard tells 3 On Your Side.
New Breed Construction sent 3 On Your Side a statement regarding the issue. In that statement, they claim they did a lot of behind the scenes work with Richard’s insurance company and they deserve to be paid something for their time.
After our involvement and our request for them to consider dropping the case altogether, they responded to 3 On Your Side by agreeing to settle and accepting 50 percent of the amount they were seeking.
Richard says he appreciates 3 On Your Side's involvement, but claims he won't pay New Breed Construction a dime. He plans on exhausting all avenues, including hearing what the Arizona Registrar of Contractors has to say about its investigation. He has also retained a Phoenix attorney.
3 On Your Side will continue to monitor the situation and plans on airing an updated report soon.