Abandoned Pool Horror Story: When Contractors Go Bankrupt and Disappear

The Fallout of Abandoned Pool Projects

When deciding to build a pool, most people are not thinking about the possibility that their contractor might leave them with an abandoned pool project after paying them thousands of dollars. Unfortunately for many homeowners in Texas, contractor abandonment is more than just a horror story – it is reality. From dream to disaster, an incomplete pool build is the last thing any Texas homeowner thinks will happen to them when investing in their dream backyard. At Gary Pools, we personally have swooped in on an abandoned pool project left behind by other contractors and finished the construction work.

The abrupt departure of a pool contractor can result in substantial financial distress, particularly for homeowners who have secured loans or allocated significant savings for their project. Without a clear resolution, homeowners may find themselves obligated to make payments on an incomplete pool build or nonfunctional structure.

A Contract Does Not Guarantee Financial Security

It is a common misconception that signing a contract will protect you as a consumer from the possibility of contractor abandonment. No contract can protect a homeowner from the devastating consequences of their contractor declaring bankruptcy. Oftentimes, when we come across a contract that becomes an abandoned pool project; it originates from startup pool companies and companies with all subcontracted labor.

It is no easy feat to build a pool construction company from scratch and the temptation for many start up contractors is to rob Peter to pay Paul. When facing mounting bills, the only solution to making payments on time is to use the money from that next project in queue to pay for the work done on the first project. Getting far enough along in this cycle without ever stockpiling reserves will lead to bankruptcy the moment their next sale is nowhere on the horizon.

Figures 1 and 2 picture a project Gary Pools inherited from a pool company that went out of business prior to completion leaving them with an incomplete pool build. The homeowner had an extremely tough time locating another pool builder to complete the project, until they called Gary Pools. While we left the homeowners with a beautiful pool, it was unfortunately on the coattails of them losing thousands of dollars to their first pool contractor.

Selecting a Trusted Pool Builder: Key Considerations

To mitigate the risk of project and contractor abandonment, thorough vetting of prospective pool builders is essential. Texas homeowners should prioritize the following factors when selecting a contractor:

1. Licensing & Insurance

While Texas does not mandate a statewide pool construction license, many reputable builders hold certifications from organizations such as the Pool & Hot Tub Alliance (PHTA). Additionally, a trusted pool builder should carry general liability insurance and workers' compensation coverage to protect against accidents and property damage.

2. Experience & Reputation

Reputation can’t be understated. Seek out established companies with a verifiable track record of success. Online reviews on platforms such as Google and Yelp provide valuable insight into a builder’s reliability. Gary Pools is proud to be one of the highest-ranked pool companies in South Texas, reflecting our commitment to our customers’ happiness.

3. Warranty & Post-Construction Services

A lifetime pool warranty on structural components is a hallmark of a reputable builder. Gary Pools, for instance, distinguishes itself by offering a transferable lifetime structural warranty, which is a valuable asset when selling a home. Homeowners should also ask about warranties for plaster, tile, pumps, filters, and heaters, and maintenance and service plans.

4. Payment Structure & Financing

A professional pool company will implement a milestone-based payment structure, ensuring financial security for the homeowner. A comprehensive contract should explicitly outline the total cost, an itemized breakdown of expenses, the payment schedule (avoiding upfront payments in full), the construction timeline, warranty details, and protocols for unforeseen costs.

5. Avoid Significantly Lower Bids

Everyone loves the thrill of a deal. When it comes to thrifting clothes, buy one get one sale, or grocery store coupons, it is win-win for both the shopper and the retailer. However, when investing in a permanent structure, consider the consequences of going with the cheapest bid. A cheaper bid may imply that corners are going to be cut. A pool may still look pretty from the outside but could be severely lacking in steel, proper prep work, or concrete thickness – all which are pertinent to the pool’s longevity.

Identifying Red Flags

Be on the lookout for the following warning signs that are indicative of an unreliable builder:

• High-pressure sales tactics
• Significantly lower bids compared to competitors
• Low online ratings from previous customers
• Absence of a physical office or showroom
• Lack of verifiable references of portfolio
• Poor communication and frequent project delays
• Friends of family members trying to start up a new business

Choosing the right pool builder is one of the most important decisions a homeowner can make when investing in their backyard. The heartbreak of an abandoned pool project is an experience no one should have to endure, yet it happens all too often. By taking the time to research and select a reputable contractor with a proven track record, Texas homeowners can protect themselves from financial loss and construction headaches. At Gary Pools, we understand the significance of this investment and are committed to delivering not only a stunning pool but also peace of mind. Don’t let your dream backyard turn into a costly nightmare—choose a builder you can trust from the start.