A small remodel was just finished on my home. The original contract was for 30K with a 10% fudge factor; no problem. I did initiate several changes, and change orders were given to me to sign which I did; no problem. All change orders had the cost of the change clearly stated on the order so no blank checks. The final statement arrives and is 14K above the original contract plus all signed CO’s. I have paid the contractor the amount on the original contract and for all CO’s but I do not feel that the additional 14K is justified as I didn’t sign for it. What is the general accepted policy on a situation like this? Do I have a heart to heart with my contractor or call a lawyer.
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Seeing as that I haven't hear his side of the story it is hard to say what to do but I would think sitting down with him over coffee to find out where the $14k you weren't expecting came from would be more efficient than getting the lawyers involved.
Bring in the lawyers and even the side that wins may have nothing to show for it. Too often I have seen the winner later wish they had negotiated the best deal they could and settled. Most time it is cheaper. It is almost always a lot less stressful and time consuming. Good lawyers will often tell you that.
Perhaps you have overlooked a reasonable and necessary cost. Perhaps he missed one of more of your payments. Find out how he sees it. Go over the books a line at a time if need be. Keep it on an even keel even if you don't agree.
As long as both sides are seen to be operating in good faith, assume he is until it has been absolutely proven otherwise, and everyone remains rational you can likely come to an understanding or negotiate a deal a lot cheaper than the lawyers fees.
If you get a chance post his side of the story. Perhaps you could turn him on to this forum. Most builders would fit in. Then he could represent his own position. We have lots of fair minded people here and a few lawyer types as well. We even have a guy with a gavel. An online thrashing of the issues would be a welcome addition.
Thank You. I am planning to have a talk with him and I do agree that it is best to keep the lawyers out of the deal.
More info needed.
What accounts for the add'l $14K?
Was the original contract an estimate?
Were there changes in material costs that were agreed to be your cost?
Was a portion of the $14K in any of the progress payments?
Frankie
Thank You. I am going over his statements to check for duplicate items, but the statements are computerized and the line items are very general IE, frameing work, electrical work, concrete work so it is not clear where to apply the item to the job. He also changed his computer billing system while working on my job and I think that may be a part of the problem. We will see. Thank you
way too short on info. but as 4lorn says, bringing in the lawyers is the last resort. first talk and try to understand each other. not saying that anyone should give up ground, but it's a lot easier to get angry with a piece of paper than it is with a reasonable person. come back with more info and maybe you'll get a better response.
SHG
For every complex problem, there is a solution that is clear, simple, and wrong.
-H.L. Mencken
Thank You. The common thread so far is not enough info, so I can see that it is not as clear cut as I thought. I tried to be concise and brief. The job went sideways from the beginning and the contractor was supposed to fix his subs mistakes on his dollar, not mine. That was the agreement, but I am suspicious. Thanks
I don't understand what you mean by a 'fudge factor'. Was the $30K a fixed price for a fixed scope of work? Or, was it an estimate for a time and materials job, and the 10% fudge factor is the contractor giving himself some slack?
In either case, a $14K overrun on $30K--over and above the approved changes--is ridiculous. If there were concealed conditions and unforeseen difficulties that were legitimate extras, then the contractor would have / should have issued change orders right away.
My guess is that he badly underbid the job and is trying to recover.
Thank You, I am dealing with a design/ build firm that has contractors perform the work. They specialize is big buck remodels in up scale areas. There work there is first class. Good fit and finish. My project is a very small one for them and I feel that I got the "B" team (or C D team) for my job. Metal support posts installed backwards, and way out of plumb. Their fix is to "box them in". The rafters were cut carelessy and the eaves looked like a roller coaster track. They tried to shim up the rafters to even up the eaves and that looked like ####. Their final solution was to "box it in" and hide the poor work. These boxing in projects were to be done on the contractors dime as it was his crew that screwed up. These guys are great at putting lipstick on a pig. Their "fixes" only made the project worse. Thanks for letting me vent.