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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (57583)	7/12/2006 4:11:19 PM
From: mishedlo	Read Replies (2) \| Respond to of 306849

OTOH Elroy has a good point. We have only heard one side of the story. Why would Lennar be willing to pay the contractors directly? That suggests, as Elroy pointed out, that they think Veemac is severely overcharging them. I can disagree with that. There were some unfinished units in those developments and Lennar agreed to pay another sub multiple times the amount per unit that Lennar was paying Veemac. Here I just found the figures. Veemac's framing charges $24,000 per house. The sub replacing Veemac is getting $64,000 per house. The quality testimonials do not seem to indicate any problems with Veemac, nor does the fact that now Lennar is attempting to pay some of Veemac's workers directly. If the work was not done or not done correctly why would Lennar pay the workers? I did not mention those facts as I thought the article was long enough already. Lennar is paying the next sub far more and according to Veemac's attorney attempting to bill those excessive charges back to Veemac. This is one way to avoid paying Veemac a dime. This almost sounds like a calculated play to bury Veemac. Perhaps Elroy and or others has a different opinion after hearing this. Mish