PHILADELPHIA RESIDENTIAL DEVELOPMENT CORP

We made a mistake from the beginning by renting a house from our builder, which gave him little incentive to finish the house on time. As a result, we settled 2 months after the initial promise date. Our builder was smooth, assuring us of his reputation and attention to detail. In retrospect, he said many things to us that simply turned out to be untrue. We conceded many things in our negotiation process, the most costly of which was not putting money into escrow for unfinished work. This was a big mistake. Even though the house was delivered late, there was a mad rush to finish which I believe led to a lack of attention to detail seen throughout the house. Overall, I think the house is well built. However, there are houses in our neighborhood that cost $200K less that have better finish work. (ie ceiling finish, trim, tilework, bathroom detail, floors, stairs). After talking to local real estate agents, builders, and contractors, I've learned that David has a reputation for negotiating rock bottom prices on labor and materials. This shows in the finish of the house. So now we are trying to get him to finish our "punchlist" items, or the things left undone. This has proven to be a full time job. I've come to the conclusion that completing this punchlist is a sort of game for David to see how little money he can spend. He refuses to clean up sloppy tile work in the bathroom. He installed a pedestal sink with plumbing from the floor that is bent like crazy. There are gaps between the kitchen countertop and wall that are over 1/2". The stairs creak. A large window well that is at least 6" deep was left uncovered. Our biggest problem has been the hardwood floors (a $6k upcharge). There are gaps and loose boards throughout. We had an independent contractor evaluate the floors and the estimate for repair was over $10K. David has given us no reason to believe that he is going to try to remedy the situation, so we were forced to file a lawsuit against him. We are very disappointed in this outcome. I will modify this report with any changes.