Complaint Review: Klatke Construction - Lakewood Colorado

Mark, This rip off report and the BBB report will probably cost you more than the $1200 that you owe AV-1.  You could have avoided it by paying the bills that you owe. A smart business owner would understand that they always pay their subs and take care of their customers because you will never even know who reads this and chooses to do business with someone else because of a bad rip off report or bad BBB report, but I do not want to see or know that anyone else has to go through  what you have put this client and the subs on this job through. It is really easy to be a good and ethical business person and it is much easier than going through all this drama over $1200 that you owe someone that completed a job.  Eventually it will catch up to you, hopefully before your next client.

Mark changes his story every time.  Avoid doing business with him or for him.  His BBB profile has another business that he failed to pay as well from several years ago.  His Project Manager hired us with the understanding that I did not have insusrance because I had just had Shoulder Surgery, was taking time off (7-9 Months)because of it, but because they were in a time crunch (maybe bad time management) and because I had done business with the Project Manager at a different company (that always paid their subs upfront), I agreed I would have one of my subs complete the job. I was told that it was a 3-4% charge and now he says 15%. (And yes Mark, That is in writing)

I submitted the original invoice with discounted pricing. Klatke Construction obviously does not pay their subs and it appears to be a pattern. 

I set up an appointment to come by and pick up a check at Mark's office. When I got there Mark was not there.  His employee called him and Mark told me that he thought he was talking to another company that he had not paid.  Never any hostile words, (Yes Mark there are witnesses that were standing right there besides your employee)

The home owner on this project also stated that Mark had not paid several other subs even though they had paid him and his company and the home owners checks had cleared even though Mark initially said he was waiting to pay us because the checks had not cleared.  The home owners said they had to hire an attorney to make sure Mark pays his subs.  We still have not been paid.

In Colorado, the home owner or business owner is ultimately responsible for paying anyone or any company that works on that project even if they pay the General Contractor, if that General Contractor fails to pay.  If you pay him and he does not pay then you could be liable for paying the sub even though you paid the contractor.

I do beleive in letting people know the truth.  I would advise against it, but If you decide to do business with Klatke Construction or Mark Klatke either pay the subs directly so that you will not get liens or double billed on your home or do not pay him until there is proof that he has paid all the subs.  There are a lot of great, honest, ethical General Contractors in Colorado, Do your due diligence because instances like this is how Contractors got  a bad name.  It is NOT all General Contractors, just a few that are bad players.

Most ethical contractors pay the subs and provide lien waivers to the owners before they get paid.  They have money to pay the sub contractors before the owners have to pay the general contractor or provide a way to prove the subs have been paid once the owners pay them.

Usually when General Contractors fail to pay their subs it is because they are having financial difficulty or they mis-manage their business. 

Just protect yourself from shady General Contractors. 

AV-1 was hired by one of our superintendents and was infomred imeddiately to turn in their insurance certificates and W9 documents.  they informed us they were uninsured.  We immediately informed them that our insurance would be charged form them to be covered and it will cost 15% of the billed amount.  AV-1 never submitted a correct invoice to pay against.  Their total cost was about $4200, so the insurance cost would be $630.  Their owner was beligerent with our staff and very uncooperative.  As an owner, I do not cuddle to hostile behavior.  Most of his statements in his report are false.  We did not suggest he lien the project.  We told him to correct his invoice or he would not get paid.  Simple solution that the owner failed to provide.  We make mistakes and trust people we should not at times.  We are continuing to learn from our lessons, so we can deliver the best products possible to our customers.  Companies that do not do the basic requirements for business, such as paying for state mandated insurance are typically a source of trouble and should be avoided.  Always ask your contractor for proof of insurance prior to letting them set foot on a project.  We spend over $5000 per month to protect our clients from undue risks.