Complaints

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• Initial Complaint

  Date:21/01/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  -date of transaction: Paid total of 2022/October started paying Ferruzo contractor
  
  -The amount I paid to ferruzo: $670,000
  
  -Ferruzo was supposed to finish renovating my restaurant unit so I can open the restaurant business, I paid all $667,458.95 up to date and now they want more. It started with $400,000, they increased to $500,000, now they asked $667,458.95. I paid them up to $667,458.95 up to date. and now they want another $135,000 more. They want more and more and more, it doesn't end and never completed the renovation for 3 years. I had to borrow alot of money from private loan, and I am paying alot of interest to private loan right now still.
  
  -what the business committed to provide you: Feruzzno contractor should have finished this project with $400,000 and should have done project 3 years ago. I am stuck with private loan interest and paying them. Ferruzno asked for $667,458.95 which I paid them and they want another $130,000 more. **** ** **** ** ****.
  
  -What the nature of dispute is: Ferruzo has to finish project asap and never ask for more money
  
  -Ferruzo contractor never solved problem, and asking more more money from me(hardworking myself to make money)
  
  Please help me solve this problem, I need to open restaurant quick and pay off my private loan interest. Ferruzo asked $400,000 at start, and then $550,000 and now $667,458.95 which I paid all 667,458.95. and they want more $130,000 now. this is no good.

  

  Business Response

  Date: 12/02/2025

  RESPONSE TO BETTER BUSINESS BUREAU COMPLAINT
  FERRUZZO CONSTRUCTION AND DEVELOPMENT INC.
  
  Ferruzzo Construction and Development Inc. (“Ferruzzo”) has reviewed the Better Business
  Bureau complaint filed by ***** ****, and provides the following response. Fundamentally, the
  dispute between Ferruzzo and Mr. **** is a legal dispute that does not engage the Better
  Business Bureau. Ferruzzo has provided a high quality of service to Mr. ****, and has diligently
  tried to return to complete the construction project, despite Mr. ****’s consistent failure to make
  payments to Ferruzzo. A complete narrative is set out below.
  

  Ferruzzo entered into a construction contract with *********** ****** Inc. (“025”) a
  corporation owned by Mr. ****, on October 6, 2022, related to a renovation and fit-out of a
  restaurant that Mr. **** was opening (the “Contract”).
  

  Pursuant to the Contract, 025 agreed to pay Ferruzzo a design fee of $20,000.00 plus HST, and a
  construction fee of $564,100.00 plus HST. During the design phase, the parties agreed to an
  extra $10,000.00 on account of the design fee, due to multiple revisions requested by 025, and
  unanticipated municipal requirements.
  

  Pursuant to the Contract, payments for the construction work were to be made at the following
  milestones:
  a) $100,000.00 plus HST due upon completion of the drawings package;
  b) $185,640.00 plus HST due upon completion of framing, mechanical rough-ins, and
  speciality equipment ordering;
  c) $139,230.00 plus HST due upon completion of the drywall, flooring, and trim work;
  d) $92,820.00 plus HST due upon completion of painting, millwork, mechanical and
  electrical finishes; and
  e) $37,710.00 plus HST due upon completion of construction.
  
  Throughout the course of construction, 025 was delayed in its payments.

  On February 1, 2024, Ferruzzo rendered an invoice for milestone number 3, completion of
  drywall, flooring and trim work. 025 failed to make payment of the invoice. Initially, despite
  025’s failure to make payment of the invoice, Ferruzzo continued to progress the work on the
  project, and nearly reached completion of milestone number 4, painting, millwork, mechanical
  and electrical.
  

  On February 27, after the invoice for milestone number 3 had gone unpaid for a full month,
  Ferruzzo suspended its work on the project in accordance with its express rights under the
  Contract.
  
  Despite repeated assurances by 025 that payment was forthcoming, 025 failed to make payment
  to Ferruzzo of its invoice for milestone number 3, and on April 25, 2024, Ferruzzo registered a
  lien against the premises.

  On April 29, 2024, 3 months after Ferruzzo’s issuance of the invoice, and 2 months after
  Ferruzzo had suspended work on the project, 025 finally made payment to Ferruzzo of its invoice
  for milestone number 3. 025 also made payment for milestone number 4, as the work for that
  milestone was nearly complete.
  

  By this point, Ferruzzo had incurred numerous costs associated with its demobilization and the
  delay to the project occasioned by 025’s failure to make payment. Ferruzzo had also quantified
  the costs that it would incur to remobilize after the lengthy suspension of work. Ferruzzo was
  concerned about returning to the project without assurance that it would be paid its final draw,
  along with the additional costs already incurred and to be incurred.
  

  On May 23, 2024, Ferruzzo instructed its lawyer, ***** ******** to write to 025 to make a
  proposal for Ferruzzo’s return to site, which would require 025 to pay the full amount owing to
  Ferruzzo into its lawyer’s trust account, with a schedule stipulated for the release of the funds to
  Ferruzzo.
  

  On June 1, 2024, ****** **** wrote to Ms. ******* to advise that he had been retained by 025,
  and would be responding to Ferruzzo’s proposal shortly.
  

  Ms. ******* regularly followed up with Mr. **** for a response to Ferruzzo’s proposal, and
  consistently implored Mr. **** to expedite a response as Ferruzzo was keeping its team and its
  trades on standby in order to complete the project. Nevertheless, Mr. **** did not provide a
  formal response to Ferruzzo’s proposal for more than 6 months.
  

  On November 21, Ferruzzo reached out to 025 in good faith to try to negotiate a resolution
  without lawyers. The parties spoke on November 27 th , but were unable to arrive at a resolution.
  Left with no other option, Ferruzzo advised 025 that if the parties could not come to an
  agreement by December 5, they would need to terminate the Contract.
  

  On December 5, 2024, Mr. **** wrote to Ms. ******* “formally” demanding that Ferruzzo
  return to site and complete the project. 025 refused to acknowledge the delays or additional costs
  incurred as a result of its failure to make payment to Ferruzzo.
  

  After correspondence between Ms. ******* and Mr. **** made clear that 025 was unwilling to
  recognize the costs incurred by Ferruzzo, Ferruzzo advised 025 that it was terminating the
  construction contract. Ferruzzo has incurred losses, costs and expenses of approximately
  $200,000.00 as a result of this project, not to mention a loss of goodwill among its trades, who
  remained ready, willing, and able to complete the project throughout the 8 month suspension.
  

  Ferruzzo has had an impeccable record with the Better Business Bureau for since it joined in
  February 2022. ******** **** **** *** ****** ******** ****** ****** **** ********* **** ***
  *******
  **********************

  Customer Answer

  Date: 27/02/2025

  
  
  Complaint: ********
  
  
  
  I am rejecting this response because:

  Ferruzo ***** *** saying I, ***** **** paid late. They were
  supposed to finish the whole project in 6months or less. But they have not
  completed the project for 2 years and 5months, and saying nonsense like they
  couldn’t get permit and blamed on the government. They wanted the big amount of
  money from me ahead, before each deadlines meets and they didn’t even process anything
  and kept asking for more money and more money. In the contract, when certain
  things are done, I am supposed to give money, some amount, but even when things
  are not even done, they asked for money. It took them 3 years now and the
  project is not even finished. I paid them and even ahead of what they asked for
  and they are asking me to pay another $140,000. I gave them the amounts ahead
  since I didn’t want more delay of construction. And now they are asking for
  another $140,000. Since project has been delayed and delayed my bank loan
  expired. So I had to borrow from private loan and paid them the money ahead of
  scheduled payments. 1st they said $400,000 all in to finish the
  project and the delay went over 16 months and they increased total fee to
  $500,000all in to finish project and now $600,000 to finish the project and now
  they want another $140,000. And they are saying it is my fault. This is
  nonsense. Ferruzo also said if I don’t pay them more money than what is said in
  contract, they said they will cancel all permits from government. I hired
  lawyer and lawyer is saying go to court but I have not decided yet, so I am
  contacting Better business bureau for help please.
  **** ** ********** ** ******** wanting more money and more
  money than they said and I did pay them ahead since they delayed the project
  for way longer. I didn’t want any longer delays so I paid them ahead. It has
  been 2years and 5months and still didn’t finish the project and they want
  another $140,000 when everything is paid. They won’t stop asking for more money
  and more and more and project will never finish. It was supposed to be done,
  whole project less than 6months and still not done and they want more money
  than what we all agreed. It is almost double than they 1st asked for
  the money for the project to be finished.

  
  Sincerely,
  
  
  
  ***** **** C/o ***** ***

  

  Business Response

  Date: 28/03/2025

  ***** has altered the file name of the document, so I’ve ******** the original versions for reference. This document was a budgeting worksheet for Ferruzzo Construction, similar to others we prepared. Specifically, it was a preliminary estimate of construction costs created before any drawings were even started. Below, I’ll provide further context.
  
  Our first meeting with ***** and his realtors took place on-site in mid to late August 2022. At that time, the entire condo building was still under heavy construction, and *****’s unit was an open shell connected to the other 4–5 commercial units, making it difficult to fully assess the space and what the landlord was giving them.
  
  Later, we sat down with ***** and his realtors to discuss his design requirements in order to create a preliminary budget tailored to his needs. We were provided a standard realtors 2D floor plan of the unit, but *****’s requirements were vague—he essentially asked us to estimate what we thought was necessary. As a result, we did not include any custom elements such as a bar, feature walls, or detailed millwork in this early estimate.
  
  One of the key components we stressed to ***** was the importance of specifying his kitchen equipment, as this would impact overall costs, and the size of the commercial hood range required. We repeatedly emphasized that the hood range would be one of the most expensive elements of the project. ***** initially provided a list and a few images of equipment from his existing location, but these were not comparable to the final specifications and layout he ultimately approved and were engineered.
  
  Given the limited information available at the time—including finishes, equipment specifications, updated code compliance requirements, and city zoning regulation. As best as possible, we prepared a preliminary estimate to provide ***** with a starting budget based on basic design requirements and using historical numbers from previous projects. In industry terms, this would be considered a Class 5 estimate, intended to give an early cost projection and assess alignment with *****’s budget. The key components accounted for in this preliminary estimate included:
  
  (1) Barrier-free and universal washroom.
  (1) Dividing wall between the kitchen and dining area.
  Drop ceilings in the kitchen and bathroom area (dining area ceiling left open).
  Allowances for basic finishes, including flooring, baseboards, painting, millwork (tables, chairs, booths, and reception desk), metal doors, and minor concrete work for plumbing.
  Mechanical work allowances.
  Additional budgetary allocations:
  $20K for drawings.
  $5K for customer signage.
  $80K hood allowance (standard 8–10 ft hood).
  $50K kitchen equipment allowance.
  $40K contractor fees.
  
  Once we finalized these preliminary budget numbers, we met with ***** and his realtors (who sold him the unit and acted as his translators throughout the entire project - ***** ***) to review them. At this meeting, we provided a summary document titled ***** PRELIM. BUDGET BREAKDOWN, which outlined the major cost items. They wanted a sense of how we got to our numbers shown in the ***** PRELIM. BUDGET BREAKDOWN document so we pulled up our 1A document and reviewed each line item and how we got to those numbers.
  
  After discussing the numbers, ***** indicated that he wanted the construction to be completed within a $200K–$300K range. We advised him that this was not realistic and that a more accurate starting point for construction at the time would be a $400K–$500K range.
  
  We also clearly stated—both in person and via email—that these were preliminary budget numbers and that once we finalize *****’s design requirements and the city approves the engineered drawings, we would issue tenders and finalize the scope of work and contract pricing, which would then be documented in Schedule "B" and "C" of the contract. After explaining all of this and the projected construction costs, we drafted our standard design build contract for *****’s review. The contract was sent to ***** on October 6th,2022 and he signed it on October 12, 2022 - giving us the green light to begin in the design phase. *** **** ********** * **** ******** *********** ** ***** ***************
  
  Lastly, we want to emphasize that the preliminary budget document made in Sept/Oct of 2022, does not compare to *****’s approved final design signed off by the City ** *********. Side note, ***** and his team keep comparing his build to his neighbours Sushi restaurant which only have a couple of freezers, microwave and a rice cooker. The amount of engineering work required for his kitchen hood alone to the new city regulations regarding the condo's directly above, took us an extra two-three months and hundreds of engineering supporting documents -and these regulations just changed while we were designing *****'s unit. Additionally, we found out when we tendered the drawings, ***** was required to use the landlord’s approved mechanical trades, which would have increased his final contract price by approximately an additional $100K–$150K. However, on *****’s behalf, we secured competitive quotes and negotiated with the landlord to allow us to use our professional trades, resulting in significant cost savings for *****.
  
  The issue we have been dealing with ***** since the start is lack of engagement and respect from his side, which makes everything 10x longer and more difficult. We have waited months for ***** to finalize the design layouts, equipment specs, weeks on approving his neon sign, millwork designs which bushed production in the New Year, and we can go on and provide email correspondence as proof. When these delays were occurring, we brought this to ***** and his realtors attention that we needed the information confirmed as we were adding onto the construction schedule. We have explained all of this to *****, his realtors, and his lawyers’ numeropus times since we walked off the job site in February of last year. As brought to your attention, we have sent emails in Korean and hired our own Korean translators to come into these meetings and get our message out to *****, but ***** and his team never engage in productive dialog, which results in lost of time and recourses. They have agreed to and signed the contract for the amount outlined in Schedule "B" and “C” and the numbers they keep referring to outside of that are irrelevant.
  
  We waited nearly four months to receive payment for the work completed and emailed him weekly for an update on when we could expect payment so the trades and Ferruzzo wouldn't walk off. There is a trust factor that has been lost with *****, and Ferruzzo has made it clear to ***** since February 2024, that late payment and lack of engagement would result in remobilization fees. Ferruzzo has been extremely fair and patient to *****, especially when we received short and late funds during construction, which you can see in the statement we have provided. Ferruzzo has taken a great financial loss on this project and ***** doesn’t seem to understand this.  
  

  Customer Answer

  Date: 30/03/2025

  
  
  Complaint: ********
  
  
  
  I am rejecting this response because:
  

  Ferruzo is saying I paid late with false statement, ferruzo didn't even finish this construction project for 2 years and how do I trust them.

  I don't have experience on contractors, so I paid all the money(over $660,000) they requested, even though we don't have clarification when project will be finished.

  I still paid them all the money($660,000),  In the contract there was timeline when things will be done, but it didn't go as ferruzo promised according to timeline, they kept asking money ahead of time,

  and they didn't even continue to do contruction, and not even finished the contruction. Since I was afraid it would be delayed more than now again, I paid them ahead of time. They said they will finish quick if paid ahead of time, so I did pay them AHEAD of timeline. And they want more and more money now, I never guessed about this, this is awful.

  It is still not done, and they stopped working right now(construction for restaurant) I don't want more delays, I want to open quick, I can pay $50,000 to finish the project so finish the project of construction now. I lost so much money because of delay in this construction.(private loan I had to borrow to pay ferruzo, interest payment, not opening restaurant no income, equipment rent interest in this unit of project, mentally stressed, monthly payment of unit I bought for this project and alot more, countless)

  We will hold $50,000 to our lawyer and once the project is completely finished, we will release the $50,000 to Ferruzo to complete everything.

  We also need signed written copy when everything of construction will be finished by Ferruzo for this project.

   ***** **** C/o ***** ***

  

  Business Response

  Date: 21/04/2025

  Thank you for your patience as we gathered the necessary information to respond appropriately to *****’s recent complaint.
  ******** ** **** ****** *** **** **** ********** ****** ********* ***** **** * *********** ** email correspondence between ***** and Ferruzzo that spans from November 2023 to December 2024. This correspondence outlines the project timeline and highlights key communications, including the following:
  
  *Emails letting ***** know work is going to be completed and to come to site with the bank to review so we can receive payment. 
  *Projections for when invoices were expected to be issued.
  *Progress photo updates provided at the request of *****, *****, and the bank.
  *Emails in which ***** stated he would short-pay Ferruzzo due to bank interest.
  *Communications where ***** claimed payment was contingent upon the satisfaction of both himself and the bank.
  *Emails in which ***** states he'll pay Ferruzzo when more work beyond the due amount is completed.
  *Notices from Ferruzzo warning that a stop work order would be issued if payment was not made within seven (7) days of becoming due.
  *Delays caused by *****’s late approvals on custom orders (e.g., millwork).
  *Repeated requests from Ferruzzo for updates on draw payments.
  *Requests for in-person meetings to review site progress and facilitate payment.
  *Ferruzzo arranging a translator and translating emails into Korean to ensure clear communication.
  *Ferruzzo waiting over three months for the final payment to be made.
  *Emails in which ***** states he'll pay Ferruzzo when the entire project is completed.
  *Notifications regarding remobilization fees if further delays occurred.
  *Warnings and confirmation of lien placement due to non-payment.
  *Ferruzzo Liening property.
  *A formal remobilization fee letter and terms provided to ***** by Ferruzzo’s legal counsel.
  *Ferruzzo personally reaching out to ***** after seven months of legal discussions in an effort to resolve matters and complete the project.
  *Ferruzzo initiating negotiations to move the project forward.
  ******’s failure to respond to the proposed terms.
  *Ferruzzo’s termination of the contract.
  
  Please let me know if you require any additional information or documentation.
  Best regards,