Looking For A Custom Home Builder in Moore County, N.C.?
This Website Intends To Chonicle Our Extrordinarily Miserable Forest Creek, Pinehurst Building Experience With Lally Construction & Design
This website should always be considered “under construction”. It will stay up until the final item in this miserable saga is complete, so feel free to check back often
To insure there is no confusion with the possibility there is another N.C Building Contractor with the same personal or business name, this website is only about our nightmare home building experience with Mark Emmett Lally, the owner of Lally Construction and Design LLC in Carthage, N.C. whose office is located at 302 Gilliam McConnell Rd, Carthage, NC 28327 and whose website can be found HERE
Our contract with Mr. Lally required that any disputes unresolved between the parties be settled through AAA arbitration. As we begin building this website, we have already completed one arbitration (December 2025). In the written findings, the arbiter found that “several items of work were defective, incomplete, or improperly performed prior to move‑in, and that additional warranty issues arose after move‑in”. in addition, we received a financial award
At the time of Arbitration #1, the $48,000+ overcharge had not yet been discovered as such, it was not addressed. In addition, many additional warranty defects were not included in the case #1 judgment due to a procedural error on my part while representing myself — I had not properly notified Lally Construction of all defects . That error has since been corrected. Lally Construction has now been properly notified of all previously known and newly identified warranty items requiring remediation.
To date, Lally Construction has sent one subcontractor one time to address the defective and incomplete new warranty items and previously improperly notified defects. On that visit, he was paid by Lally Construction to only fix 4 items. 3 were fixed, one was not repaired (he could not fix it) but instead, damaged further. I ultimately hired a locksmith to fix both the underlying problem and the additional damage caused during the attempted repair. This is the entirety of Lally Construction’s effort to date.
What remains baffling is that no representative from Lally Constuction has ever once requested to visit the property to inspect or discuss any of the identifed warranty defects identified over the past 14 months. His absence and lack of engagement suggest either indifference or intentional avoidance. Regardless of interpretation, he had a clear legal obligation to correct defective workmanship under both the contract and North Carolina law (depending on the item). Even setting the legal obligations aside, I have always believed that as business owners it is best to always put the customer first and do what is morally and ethically right, even when it isn’t required or comes at personal cost. if Lally Construction only held those same beliefs and business ethics/standards we would not be where we are today.
We paid Lally Construction nearly $170,000 in management and design fees—an amount that rises to almost $220,000 when including the overcharge plus interest. His fee was supposed to cover his “expertise,” “skill,” management of subcontractors and ….. based upon his website …. an “extraordinary building experience”. Looking back, perhaps we did receive an extraordinary experience—just not the kind we hoped for.
Roof Runoff Water Drainage Defects
Back yard drainage video from roof downspout taken 7-6-25, a very large rainstorm that hit Pinehurst. Note the pooling of water directly against house. If graded correctly, and the drainage pipe failed, this would not occur, nor would it violate building code like it did. Under North Carolina Residential Code, all surface and roof water runoff must be diverted away from foundation walls to prevent structural damage and flooding. The code requires specific grading and drainage standards: [Chapter 4 - Foundations]. Does the video to the left meet those standards?
Front yard drainage video from roof downspout closet to front porch taken during the same 7-6-25 heavy rainstorm mentioned above above. After thousands of dollars of personal expense later and a very lengthy investigation, this defect turned out to be an installation failure of the downspout to cistern drainage pipe. A detailed video inspection and excavation the owner made to find the root cause of the problem, showed all materials used in this system turned out to not be the cause but rather an improperly installed pipe that not only terminated in the wrong place filling the pipe up with sand and creating a huge back pressure restricting water flow but also not properly leveled.
Another frontyard rainstorm video, this time a very small, intermittant thunderstorm that quickly passed through Pinehurst on 5-24-26 and had less than .1” that fell in our localized area. Does anyone think a .1” rainstorm would backup a properly installed drainage pipe?
Another backyard rainstorm video, this time a very small, intermittant thunderstorm one that occurred 3-16-25 and produced between .02” to .4” during the 24 hour period. The house was not finished but we were asked by Lally Construction to show up for a meeting that day. We shot the video while waiting for Mr Lally. Upon showing up, we showed him what occurred (by the time he showed the rain had stopped) and he said it was caused due to the pinestraw. A very strange response considering there was was no pinestraw to be seen either at the top and bottom of the downspout or the entrance to the drainage pipe. Pinestraw could not have been the cause regardless as the installed Gutter Gaurds prevents pinestraw entering the gutter, downspout and remaining drainpipe system.
Lally Construction’s New Home Welcoming “Gifts”
One For The Neighbors Lot Another For The Owners Crawl Space
Is It Reasonable To Expect A Builder To Honor His Word & Comittments?
If So, Be Very Careful Of Who You Select
If Not, You May End Up In Court Or Arbitration & Lose A Lot Of Money
In an email from Lally Construction dated 5/5/25, Mark Lally wrote
“Items on your punch list that will be addressed after payment is made are:
(1) Window frames will be repaired and repainted where they are needed, even though the last time I was at your house you said you wanted to do it yourself.
(2) Shower grab bars will be installed. (One attempt at this was already made) (3) Carolina room threshold on door will be repaired and stained.
(4) Shutters will be removed and replaced.
(5) Door handles will be cleaned.
(6) I will call Blarney Stone and tell them to come polish and repair your Quartz countertops where needed and tell them to fill the divot on the underside of your island countertop.”
Lally Construction deposited our final payment on 5/29/26 which was sent 24 hours via USPS mail after Lally Construction provided a corrected and accurate final billing/accounting statement.
More than one year later, Lally Construction has completed only one of the items above, #4. To their credit, that repair was efficiently and properly completed and without the normal drama we have become accustomed to.
Pictures & Video That Need No Explanation
Is It Reasonable To Expect A Builder To Properly & Carefully Install Internal Door Handles?
If So, Be Very Careful Of Who You Select
If Not, Damage Could OccurAnd Cost You A Lot Of Time And Money To Repair Or Replace
More Coming Soon Check Back Often
Is It Reasonable To Expect A Builder To Cover, Protect & Not Use Countertops As Storage During Construction?
If So, Be Very Careful Of Who You Select
If Not, Damage Could OccurAnd Cost You A Lot Of Time And Money To Repair Or Replace
Is It Reasonable To Expect A Builder To Install Your Outdoor Paver Hardscape Correctly?
If So, Be Very Careful Of Who You Select
If Not, It May Create Sinking, Shifting Pavers & Erosion Costing An Extensive Amount Of Time And Money To Repair / Replace
Interested in Building In Forest Creek?
If you are contemplating using Lally Construction within Forest Creek as his website offers, I do not believe Lally Construction currently has access to the gated community. Due to the number of threats that Lally Construction made to me personally and the resultant concerns for our safety, I requested Forest Creek revoke his access. It was either that or file a civil, no-contact restraining order against him. See my written request to the committee issuing builder access and the concerns we have.
Is It Reasonable To Expect A N.C. Builder To Correctly Caulk Every Window As Required Per NC Code R402.4.2?
If So, Be Very Careful Of Who You Select
If Not, Pests & Rainwater May Have A Way In Leading to Damage And Cost An Extensive Amount Of Time & Money To Repair/Replace
Is It Reasonable To Expect A Builder To Apply Approved Accounting Practices & Not Manipulate Them To Inflate Customer Charges?
If So, Be Very Careful Of Who You Select
If Not, You Could Be Overcharged By An Unprincipled, Unethical Or Financially Ignorant Builder
Talk Is Cheap
Words are inexpensive. Their value comes only when they are supported by consistent, verifiable action. When evaluating performance—or holding someone accountable—it is necessary to look beyond assurances and examine the actual results.
Below are six statements taken directly from the Lally Construction & Design website. These same representations were made to us during our initial meetings before signing our contract. They described a process and level of service that any custom‑home client would reasonably hope to receive. However, based on our experience, many of these assurances did not align with the outcomes we ultimately observed.
Statements from Lally Construction & Design
“Our ethos is defined by the unyielding pursuit of excellence.”
“This hands-on approach guarantees that every detail is crafted to your satisfaction.”
“We stand by complete cost transparency… reinforcing our commitment to honesty and trust.”
“High-End Custom Homes Without the Premium Price.”
“Cost-effective strategies without compromising impeccable quality and detailed craftsmanship.”
“Undivided attention to quality and detail.”
Our Observations Compared to These Statements
While the company’s stated pursuit of excellence may reflect its intended philosophy, the results in our case appeared to fall short of those expectations. When reviewing the documented issues rather than the promotional language, it is difficult to reconcile the two.
Satisfaction
A reasonable question is whether an average homeowner would be satisfied with the condition of the finished product we received. If the answer is yes, then Lally Construction & Design may be a suitable fit for them. Our experience, however, differed significantly from what we understood was being promised versus what we received.
Transparency, Honesty and Trust
Although certain aspects of the process may have been transparent, we did not experience the level of honesty or trust implied by the website’s language. For example, questions remain regarding an almost $50,000 overcharge and incompleted repayment demands of the overcharge. Whether such conduct aligns with “honesty and trust” is ultimately for others to evaluate, but it did not match our expectations based on the company’s representations.
When considering the documented defects and financial discrepancies we experienced, the reassuring tone of the website may not reflect the full range of possible outcomes.
“Without the Premium Price”
“Premium price” is a subjective marketing term—an ideaphone meant to create a positive mental image rather than a measurable standard. Does the positive mental image of “without the premium price” still hold true if you factor in:
~$50,000 in overcharges
Many tens of thousands more dollars to remediate the defects required just to make the home fully inhabitable
Quality and Craftsmanship
The defect evidence we documented raises questions about whether “impeccable quality” or “detailed craftsmanship” were consistently delivered. Our firsthand experience of the company’s “undivided attention to quality and detail” differed materially from the expectations created by the website’s wording and the owner’s promises made to us. Others looking for a custom home may have lesser expectations and find what we experienced acceptable. I can only say it wasnt for us.
The Challenge for Future Clients
For prospective clients, the central issue is uncertainty. Based on our experience, there does not appear to be a reliable way to know in advance which type of experience a client may have, despite the positive assurances and marketing language presented on the company’s website.
Some clients report favorable outcomes and share five‑star reviews. In contrast, we documented significant issues and felt it was important to provide a detailed account of our experience for potential future customers. After doing so, as you see above, we received a cease‑and‑desist letter alleging defamation and referencing potential civil litigation and legal costs. Whether this response we got explains the limited number of negative reviews or whether our situation was simply an anomaly is not something we can determine; it is only a question that arises from our experience.
This variability creates a risk: new clients may not fully understand which experience they will encounter until the contract is signed, work has begun, and the initial honeymoon period has passed — at which point practical options for addressing concerns may be more limited.
Is It Reasonable To Expect A Builder To Insure Installed Cabinets Are Always Protected During Construction?
If So, Be Very Careful Of Who You Select
If Not, Damage Could Occur And Cost An Extensive Amount Of Time And Money To Repair / Replace
Brand New Bathroom & Laundry Countertops Before Move-in & After 2 Professional Cleanings
Owner Paid An Additional $7000 Above The Contracted Price For Countertop Replacement Due To Improper Care During Construction
Welcome To Your New Home
This section offers a concise listing of the items we discovered during and after the completion of our custom home built by Lally Construction. Rather than relying on heavy commentary and emotional responses, I’ve chosen to present a straightforward (but incomplete) list of issues, followed by photos and videos that document some of what we encountered. My goal is transparency: readers can review the information themselves and decide whether this is a builder they would feel comfortable working with.
This website timeline begins at move‑in (April 2025), continues through the end of our one‑year warranty period (April 2026), and extends beyond as we work toward a fair and satisfactory resolution to the below listed items.
A $48,000+ overcharge by Lally Construction was discovered and notification was given. A formal demand for repayment of the overcharge and interest was made. As of the date this website was created, the overcharge & interest total remains unpaid. This issue is one of several warranty‑related problems discovered after move‑in that have been formally brought to Lally Construction’s attention yet remain unresolved.
Our Front Door was incorrectly configured as it would not close/open properly nor could it be locked.
Screen doors would not open or close. This problem was found and eventually repaired by the owners.
A cooktop that was Dead On Arrival. The repair was found and fixed by the owners.
1 of 3 garage doors failed to function and was eventually found and repaired by owners after move-in.
HVAC dehumidifier was installed incorrectly rendering it non-functional. This was discovered and repairs coordinated by the owners.
The tile flooring throughout the entire house was left inadequately cleaned, with piles and streaks of thinset remaining on the surface. This defect required multiple professional cleanings, specialized equipment, and more than a dozen hours of additional remediation by the homeowner at move in.
Ceiling fan whose installation was not completed that was found and repaired by owners.
The master bedroom wall sconce was never properly installed. This defect was completed by the owners.
There was electrical plugs that were not connected to the main house power.
We experienced an Incomplete/non-functional drip irrigation system which eventually lead to more than 3 dozen plants that died. This defect was discovered and all replacements were purchased and installed by the owners
We found sprinkler valves that were installed incorrectly. Some not connected to a distribution pipe (left with an open connection and improperly capped) leaving them unable to prevent erosion.
Leaking irrigation lines and improperly configured lawn sprinklers lead to both overwatering and lack of watering. This defect was found and the repairs completed by the owners.
Piles of construction debris—including building materials, paint, and chemicals—were dumped both on the adjacent neighbor’s lot and in our crawlspace. Both were found and cleaned up by the owners
Incomplete paint and finish work throughout home. The owners repainted most of the defects but some still remain as of the date of this website.
Some door locks (both internal and external) that did not work or damaged during their installation.
Several internal doors could not close fully or remain closed due to being installed out of square.
Personal, owner customized items were damaged due to improper care during ongoing construction … including the majority of our counter tops and kitchen cabinets.
Master bathroom sinks that emit dangerous hydrogen sulfide gas. This defect is still open.
Home water pressure that was 1/3 to 1/2 of what is provided by municipality. This was discovered and repaired by owners.
Leaking fixtures and/or drains in most every bathroom. These defects were found and whose repair was completed or funded by the owners.
HVAC bug infestation. When air conditioner was turned on dead bugs came up through the vents. This was eventually found and repaired by owners.
HVAC Floor vents were left filled with building materials. They were NOT cleared out in spite of the builders promises to insure they would be, prior to move-in. While this seems like a small item, it was critical due to my wife’s health condition. This defect was completed by the owners.
There was a complete failure of the rainwater drainage systems for both the front and back porch/patio roofs, resulting in flooding every time it rained. In many places, the pooling water collected directly against the house walls, revealing improper grading. The corrective work required to fix this problem is estimated to cost the owners more than $10,000 and is not yet corrected.
Driveway and sidewalks cracked, a direct result of voids forming beneath the concrete slabs as was evidenced in the Ground Penetrating Radar study paid for by the owners. The study and deeper analysis found the defects were caused by improper engineering and/or installation practices. Specifically, the contractor failed to properly compact the driveway base material, which allowed the underlying soil to settle over time. As the base shifted, the unsupported concrete fractured and deteriorated. Because the structural integrity of the concrete has been compromised, the necessary repairs is estimated to cost ~$8,000.
Cracked sliding glass door frame which, in spite of multiple promises to fix, still remains unrepaired.
Master tub faucet fixture was not installed properly (turning on hot water provided cold water and vice versa). That fixture leaked profusely filling not only the tub, but the floor.
Shower safety bars were not installed and today still remain in their shipping box waiting to be installed (see email below).
The final landscaping pinestraw was never installed. This defect was found and fix funded by owners.
Some Internal window frames were never cleaned of paint drippings and sheet rock joint compound. These were found and corrected by owners.
Known financial overcharges presented to the builder which were promised to be removed from the final bill, but were not.
The tankless hot water heater was improperly programmed and installed, contrary to the manufacturer’s requirements. The result of the improper installation could shorten the lifespan of the unit. As a direct result of the improper programming, multiple showers in the home did not produce water warm enough for use when move in occurred. Despite several attempts by the subcontractor to correct the issue to the owners satisfaction the defect was ultimately resolved after the owners paid a qualified plumbing contractor who addressed the majority of the installation and programming errors.
Floor HVAC registers did not fit due to improper floor insert preparation. Residual construction material, tile thinset overage and misshapen ducting were the cause.
All windows throughout the home were improperly caulked, leaving gaps that allowed both pests and water intrusion. This widespread defect was eventually identified and fully repaired by the owners.
When viewed individually, some of the issues listed above might seem minor or mere inconveniences. But that is not the case for all of them — and, when taken together, they created a situation that left us stunned, overwhelmed, and completely unprepared for what was required just to make our brand‑new custom home habitable. This home was supposed to represent security, reduced risk, and the assurance of guarantees. Instead, every problem was left for us — two owners dealing with compromised health — to diagnose and resolve on our own. This happened not only because the builder di not honor his written commitments or contractual obligations but, just as importantly, show the most basic standards of compassion, decency, or ethical conduct. What makes this experience even more distressing is the financial reality: we paid Lally Construction a fee of more than $160,000 to complete our custom home. When factoring in the overcharge and the amounts spent out of pocket to remediate the above, that amount climbs to over $225,000. In addition the responsibility for fixing the above problems fell on us.
Please note that when it is stated above that items were repaired by the owners this can mean both items we personally repaired or those we hired and paid for a professional to fix
Gotta start with what I believe is Lally Construction’s most egregious act & non-professional behavior
Details of the ~$50,000 overcharge (when including nominal interest owed) and the follow-on cease and desist letter regarding my public reviews of my experience which do not yet, include this website
