09-26-2008, 11:22 AM
Join Date: Sep 2007
Bixby - Emil and June Relat documents
These were private Documents made available to PDD for viewing in an action that homeowners Relat took against Bixby with the California State contractors board for Job Abandonment
Mr. Mark Bixby
Contractor License No. 571821
MJB Bixby Construction Inc.
5852 88th St
Sacramento, California 95828
Subject: Demand for Reimbursement of Costs Incurred Due to Fault of MJB
Bixby Construction Inc.
This letter is to demand reimbursement from you and MJB Bixby Construction Inc
of costs we incurred due to your inability or refusal to complete items required by
the contract with us or because of faulty workmanship that required us to have
the work redone by another contractor. On May 24, 2004, we entered into a
contract with MJB Bixby Construction Inc and you for constructing a replacement
guest house on our property at 1020 San Ramon Way. We have paid all but
$4,225 of the total contract amount of $75,985.
From about January to June, 2005, we noticed work was not being completed
and that there were problems with construction. You were unresponsive to our
requests to correct and complete the work. In May 2005, your employee
removed his tools and left the work site. These actions constituted abandonment
and constructive termination of the job. On June 6, we notified you of the
termination so that we could hire another contractor to complete and correct
deficiencies in the work. In November 2005, the guest house construction was
completed and we have now been able to calculate costs that should have been
completed by you as required by the contract. We now demand that you
reimburse us for such costs in the amount of $38,980.00 minus the $4,225. A list
of structural defects and incomplete work with the basis and cost of
reimbursement is attached to this letter (See Attachment).
Please submit $34,755.00 by January 15, 2006, to Emil and June Relat to the
address shown below. Upon receipt of payment, we will withdraw our claim
against MJB Bixby Construction Inc filed at the State Contractor License Board
(File No. NA 2004 17831).
If you have any questions in this matter, contact our daughter Cathy Crothers, or our son Ken Relat. We
have delegated authority to them to act as our agents and manage this claim on
and June Relat
1020 San Ramon WaySacramento, CA 95864
Please find enclosed the documentation you requested to verify costs incurred by
Mr. And Mrs. Emil and June Relat due to abandonment of the construction work
that was to be completed under contract with MJB Bixby Construction (Bixby or
Mr. Bixby). Included is an itemized accounting of the payments made by Mr. and
Mrs. Relat to Bixby and other contractors to complete the work that Bixby should
have done under the contract and to correct faulty workmanship by Bixby. Some
of the values on the itemized accounting differ slightly from the values provided in
the 12-1-05 demand letter because of more extensive review of the documents.
During the negotiations and work that extended from May 2004 to May 2005, Mr.
Bixby continued to adjust the costs under the contract without obtaining signed
agreement from the Relats. It is difficult to determine what Mr. Bixby intended as
a final contract amount, but it appears from the proposed contract dated 6-9-04
and the revised contract dated 10-14-04 that $75,985 is probably a good
estimate of such amount.
As indicated on the itemized accounting, Mr. and Mrs. Relat incurred added costs
of approximately $33,960 (this is less than the $34,755 demanded in the letter of
12-1-05). This is a conservative estimate which Mr. and Mrs. Relat are willing to
accept to resolve the claim.
Mr. and Mrs. Relat have not included added costs of vinyl siding that Mr. Bixby
should have installed based on the 10-14-04 revised contract item number 13
(either T-11 or vinyl siding installed to owner's preference). The construction
plans filed with the State Building Permit Office signed by Mrs. Relat do not show
that T-11 would be used on the building. Mrs. Relat verbally made the request
based on the written contract. The plans at the construction site were altered
from the filed plans and the reference to T-11 was added after Mrs. Relat signed
the plans. She never requested T-11 and it appears Mr. Bixby added this
reference after the fact.
Enclosed are the MRH Construction contract, Fair Oaks Iron invoice, May 14,
2005 letter from Relats identifying paid items, Bixby contract, and Proof of Claim
Form sent to HCC Surety Group, American Contractors Indemnity Company. I
have not included all of the correspondence with Bixby. I also have not included