More homeowners are coming forward after construction company files bankruptcy
ARLINGTON, Texas (CBSDFW.COM) – More North Texas homeowners are coming forward with stories of lost deposits and unfinished work, after CBS 11 reported about a construction company unexpectedly shutting down last week.
RJ Construction blames an ongoing legal dispute with the Arlington Independent School District for the bankruptcy filing, but former clients say they're the real victims.
"The best-case scenario when I started trying to get something done was to get my money back, but now that's not really important from all the stories I've heard," said Arlington resident Josh Usry. "The best-case scenario is the community coming together to cast this out. This is not okay. This is Arlington. We shouldn't put up with this type of fraud."
Usry says he and his wife signed a contract with RJ Construction in January to make renovations to their home and put $30,000 down.
"Work started in May, but only continued for about two days," he said. "After two days of demo – after the ripped our entire kitchen apart – they found a lot of issues."
Something felt off, and Usry was worried either the company wasn't up for the job or he was being scammed. He tried to halt the project and get some of their deposit back.
According to Usry, he eventually had to retain an attorney, who sent a demand letter to RJ Construction.
The next day, the company filed for bankruptcy.
"We lost tens of thousands of dollars, and the stress of the upheaval has just completely upended our lives, for nothing," Usry said. "We were in Airbnbs since May, thinking they were going to do a good job. We're still in Airbnbs."
Dozens of other clients have since come forward as well, saying they're also out thousands for unfinished work.
"If you have a story and you're a victim of this, please speak up," he said.
At the time he hired RJ Construction, based on a friend's referral, Usry's research didn't turn up any red flags. He and other clients are sharing their experiences in the hopes of preventing the company from doing business again.
"We were really hurt by all this," he said.
The Better Business Bureau says doing research and talking to references is key to finding a trustworthy contractor.
"One of the things that we would recommend when you're doing that research is to get three different bids," said Amy Rasor, the Fort Worth regional director for BBB. "By getting three bids, you can find out are they kind of in line with each other."
Other recommendations from the BBB:
- Get it in writing. Always get estimates in writing and never let any work begin without a written and signed contract. Do not be pressured into signing an agreement before you are ready and make sure you read and understand everything before signing.
- Verify license and insurance. Always be sure that the company you decide to work with has the necessary licenses and insurance to work in your region.
- Confirm building permits. Your contractor must have the correct permits before starting your project.
- Inquire about a lien waiver. A lien waiver, in the United States, is a statement from your contractor that says all suppliers and subcontractors have been paid for their work.
- Think about future service issues. Make sure you are aware of your warranty coverage and how to deal with service issues.
- Arrange a payment schedule. Never pay in full up front. Stagger your payments so your final payment is not due until the work is complete and you have fully inspected it. Do not pay cash; make sure your check is written to a company, not an individual, or that you use a credit card. Paying with a credit card will provide some recourse should the job not be completed as stated in the contract.
- Get a receipt. Request a receipt marked "Paid in Full" when the job is completed and your final payment made.
- Keep your contract. Hold on to your contract for future reference or if any questions arise after the work is complete.
The owner of RJ Construction, Robert Jordan, said he was forced to file bankruptcy because of a continued legal dispute with the Arlington Independent School District over payment for work to Sam Houston High School. The company was hired after the campus' pipes burst during the February 2021 winter storm.
Attorney Michael Hammond, who represents Jordan, says he understands why clients feel frustrated, but that Jordan had no fraudulent or criminal intent.
"Robert Jordan is a good man who has tried everything possible to avoid being in this position," Hammond said. "He is committed to doing everything in his power to make this right."
According to Hammond, Jordan had been working to sell the company and thought the jobs would be completed by the next owner. The decision to file for bankruptcy was last minute.
"He is going to continue to pursue the lawsuit against Arlington ISD, which was the domino that created this problem," said Hammond.
In a three-page fact sheet released by AISD, the district refuted many of his claims and said an insurance adjustor valued the work RJ Construction did at just under $180,000.
In that statement, the district said, "Arlington ISD has never had any desire or motivation to bankrupt RJ Construction. At the same time, Arlington ISD has a duty to ensure that taxpayer money is spent only on actually performed and documented services."
