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Can general contractor raise price after house is finished?

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Can general contractor raise price after house is finished? HappyHumanist 06-23-2007
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Posted by on June 27, 2007, 7:11 pm
Dear Happy Human,

I have not read all the responses here as there are so many, so my
comments may be redundant.

I'm also suprised there is no written contract!!!

He can probably put a lien on your house:
http://www.traditionsoftware.com/constlienbystate.php
Be sure to verify on your own state website that the laws they cite
here are up to date.

Yes he can sue you. With an oral contract his proof of what was
agreed upon is no better or worse than YOURS.

A fair judge who saw thru this common BS ploy to get more money at the
end after deliberately or stupidly underbidding a job would tell the
builder he was out of luck. But you may not get a fair judge, and you
may get a judge that thinks anyone who doesn't get a written contract
on a HOUSE deserves to be taught a lesson. The judge might think it's
you who needs the lesson. Or the judge might split the difference.
Who knows. I think you'll have a hard time finding a lawyer for such
a relatively small amount of money (in lawyers' eyes). But builders
know these games and play them well. Good luck and next time do not
hire any contractors without a good contract and a lawyer on your
side.


On Jun 23, 3:14 pm, HappyHuman...@yahoo.com wrote:
> Our house (in Wisconsin) is finished. According to the bid we
> accepted, we owe one final payment of $60,000 ($53,000 plus $7,000 to
> account for change requests during the construction process) to our
> general contractor. Now, right at the end, he suddenly says we owe
> him $73,000. He says if we don't pay it, he's going to sue us. Can
> he doe this to us? Here are his reasons:
>
> 1. His estimates were inaccurate, and some of his sources for
> material and labor ended up charging him more than he expected.
>
> 2. We bothered him with a lot of changes and supervision.
>
> 3. Our house is worth a lot more than we're paying him.
>
> 4. The house too him longer to build than he expected, and so he had
> to pay a lot more for labor than he expected.
>
> Here are my answers to him on each of the four issues:
>
> 1. Regarding his costs exceeding his estimates... We had an oral
> agreement in the beginning that once we agreed on a project and
> accepted his bid that the bid would not change--up or down. If we
> made changes (we did make minor changes), we would be responsible for
> our changes. If market prices on materials were to fall, we agreed
> that he would enjoy the savings, but if prices went up, he would
> suffer the extra charges. He called this "locking in," and that is
> one of the main reasons we went with this contractor. On the detailed
> written bid he provided us, and which we subsequently accepted, he
> even wrote his "lock in" promise at the bottom--a few sentences.
> Other than these written documents and or oral contract, we have no
> official contract with him.
>
> 2. Regarding his claim that we bothered him with changes and
> supervision... He never once discouraged this or said that there
> would be extra charges, other than the cost of the actual changes,
> which we are agreeing to pay--$7,000 for specific changes bringing the
> total due up to $60,000. But he wants $73,000! As for his claim that
> we bothered him with a lot of supervision and faxed notes... He never
> discouraged this, and the only reason for the close supervision and
> notes was because his crew made a *LOT* of mistakes that had to be
> corrected. The work was very substandard. All of this is
> documented. I think our supervision and notes actually helped them
> get through the job and finish it the way we intended it to be
> finished. They were very unprofessional.
>
> 3. Regarding his claim that our house is worth a lot so we should pay
> a lot... Why should we be penalized because we came up with a great
> design and made wise choices for materials and features? He offered
> us a bid in the beginning, and we accepted. Now, because the house is
> very attractive (mostly because of the land and neighborhood), why
> should he be entitled to more money? His complaint is that he didn't
> charge enough initially, and now he's going to lose at least $30,0000,
> and that we should have to pay for his losses because our house only
> cost us $290,000 and it's worth about $450,000. First of all, I think
> it's worth $350,000 at the most, and even if it was worth $450,000,
> that would be like a mechanic complaining because he sold us an engine
> for $5,000 and we put it in a car we bought for $7,000, and now that
> car is now worth $20,000--too bad, right?
>
> 4. Regarding his claim that the house took longer to build than
> expected... Isn't that his fault? The reason it took longer is
> because his crew are slow, lazy, and inept. They made a lot of
> mistakes that they had to fix. Likewise, everything based on time
> cost about double--the dumpster, the crane, etc. In fact, this
> actually cost us money, because we paid four months longer than
> expected on our construction loan without being able to live in the
> house--shouldn't we be entitled for some compensation for that?
>
> This is all causing us a lot of stress, and it sounds like it's going
> to cost us a lot of legal fees now, too. I feel violated. What can
> we do? Please advise. Any helpful information would be greatly
> appreciated.
>
> Thanks,
> Unhappy



Posted by Tony on June 27, 2007, 7:18 pm
you CRACKER

I bet you can't screw in a light bulb

Im sorry. I have terretts! don't pay me no mind.

OOooooo usenet is in trouble now.10gb worth
i intend to get my monies worth

> Dear Happy Human,
>
> I have not read all the responses here as there are so many, so my
> comments may be redundant.
>
> I'm also suprised there is no written contract!!!
>
> He can probably put a lien on your house:
http://www.traditionsoftware.com/constlienbystate.php
> Be sure to verify on your own state website that the laws they cite
> here are up to date.
>
> Yes he can sue you. With an oral contract his proof of what was
> agreed upon is no better or worse than YOURS.
>
> A fair judge who saw thru this common BS ploy to get more money at the
> end after deliberately or stupidly underbidding a job would tell the
> builder he was out of luck. But you may not get a fair judge, and you
> may get a judge that thinks anyone who doesn't get a written contract
> on a HOUSE deserves to be taught a lesson. The judge might think it's
> you who needs the lesson. Or the judge might split the difference.
> Who knows. I think you'll have a hard time finding a lawyer for such
> a relatively small amount of money (in lawyers' eyes). But builders
> know these games and play them well. Good luck and next time do not
> hire any contractors without a good contract and a lawyer on your
> side.
>
>
> On Jun 23, 3:14 pm, HappyHuman...@yahoo.com wrote:
> > Our house (in Wisconsin) is finished. According to the bid we
> > accepted, we owe one final payment of $60,000 ($53,000 plus $7,000 to
> > account for change requests during the construction process) to our
> > general contractor. Now, right at the end, he suddenly says we owe
> > him $73,000. He says if we don't pay it, he's going to sue us. Can
> > he doe this to us? Here are his reasons:
> >
> > 1. His estimates were inaccurate, and some of his sources for
> > material and labor ended up charging him more than he expected.
> >
> > 2. We bothered him with a lot of changes and supervision.
> >
> > 3. Our house is worth a lot more than we're paying him.
> >
> > 4. The house too him longer to build than he expected, and so he had
> > to pay a lot more for labor than he expected.
> >
> > Here are my answers to him on each of the four issues:
> >
> > 1. Regarding his costs exceeding his estimates... We had an oral
> > agreement in the beginning that once we agreed on a project and
> > accepted his bid that the bid would not change--up or down. If we
> > made changes (we did make minor changes), we would be responsible for
> > our changes. If market prices on materials were to fall, we agreed
> > that he would enjoy the savings, but if prices went up, he would
> > suffer the extra charges. He called this "locking in," and that is
> > one of the main reasons we went with this contractor. On the detailed
> > written bid he provided us, and which we subsequently accepted, he
> > even wrote his "lock in" promise at the bottom--a few sentences.
> > Other than these written documents and or oral contract, we have no
> > official contract with him.
> >
> > 2. Regarding his claim that we bothered him with changes and
> > supervision... He never once discouraged this or said that there
> > would be extra charges, other than the cost of the actual changes,
> > which we are agreeing to pay--$7,000 for specific changes bringing the
> > total due up to $60,000. But he wants $73,000! As for his claim that
> > we bothered him with a lot of supervision and faxed notes... He never
> > discouraged this, and the only reason for the close supervision and
> > notes was because his crew made a *LOT* of mistakes that had to be
> > corrected. The work was very substandard. All of this is
> > documented. I think our supervision and notes actually helped them
> > get through the job and finish it the way we intended it to be
> > finished. They were very unprofessional.
> >
> > 3. Regarding his claim that our house is worth a lot so we should pay
> > a lot... Why should we be penalized because we came up with a great
> > design and made wise choices for materials and features? He offered
> > us a bid in the beginning, and we accepted. Now, because the house is
> > very attractive (mostly because of the land and neighborhood), why
> > should he be entitled to more money? His complaint is that he didn't
> > charge enough initially, and now he's going to lose at least $30,0000,
> > and that we should have to pay for his losses because our house only
> > cost us $290,000 and it's worth about $450,000. First of all, I think
> > it's worth $350,000 at the most, and even if it was worth $450,000,
> > that would be like a mechanic complaining because he sold us an engine
> > for $5,000 and we put it in a car we bought for $7,000, and now that
> > car is now worth $20,000--too bad, right?
> >
> > 4. Regarding his claim that the house took longer to build than
> > expected... Isn't that his fault? The reason it took longer is
> > because his crew are slow, lazy, and inept. They made a lot of
> > mistakes that they had to fix. Likewise, everything based on time
> > cost about double--the dumpster, the crane, etc. In fact, this
> > actually cost us money, because we paid four months longer than
> > expected on our construction loan without being able to live in the
> > house--shouldn't we be entitled for some compensation for that?
> >
> > This is all causing us a lot of stress, and it sounds like it's going
> > to cost us a lot of legal fees now, too. I feel violated. What can
> > we do? Please advise. Any helpful information would be greatly
> > appreciated.
> >
> > Thanks,
> > Unhappy
>
>



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