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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 23, 2007, 6:20 pm
We do not have a contract, except an oral contract that the accepted
bid would not change unless we made changes, and then only the costs
related to the change would be added to the bid. It was explicitly
state, orally, that market prices would not affect the bid once we
"locked in." The only prices that could change would be for our
subcontractors, and we subcontracted with them directly. There is no
written contract, unless you consider the bid a contract, which is
just a bulleted list of materials and labor with prices and a total.
At the bottom of the list and below the total is a statement that
says, more or less, that changes to the design will cause costs to be
added to the bid, but that otherwise the bid is just that, a bid, a
quoted price to do the job. There is no "performance bond." Nothing
was ever filed with the register of deeds or any other government
agency, except a septic plan and a building permit, neither of which
mention prices, contracts, etc. It was the most unprofessional joke
I've ever seen, but we trusted them, because it's such a small town
that we didn't think they would be stupid enough to commit contractor
suicide and try to screw over a high profile custom like us. We built
in the most affluent neighborhood in town. Well, they can pretty much
assume no one else building out here will ever hire them for
anything. They'll have to go back to $140K hillbilly ranch "spec
homes."

- Unhappy

> If you contract was fixed price, then it may or may not be fixed
> price. If it was "time and materials", then you pay him his time and
> materials.
>
> Just out of curiosity, does he have a performance bond on the project?
>
> Good luck with it, but you need an attorney.



Posted by Kickstart on June 23, 2007, 7:10 pm

> We do not have a contract, except an oral contract > - Unhappy
>
wipe your ass with the oral contract, oh yeah that's right , it ain't on
paper.
Pay him and be dome with it.
$13k is less than a lawyer.
You will never "win" with an oral contract.
Count your loss and be done with it and enjoy your home.
Or , come back in 2 years and $25k later in attorney fees telling me I'm
right.

Kickstart



Posted by Kickstart on June 23, 2007, 7:17 pm
> Or , come back in 2 years and $25k later in attorney fees telling me I'm
> right.
>
> Kickstart
Sorry I forgot something.
Since your dumb as a rock I should also tell you to have a lawyer make the
payment, after he signs a lien waiver and a contractors affidavit stating
that there are no liens and everyone is paid in full.
Good luck


kickstart



Posted by Pat on June 23, 2007, 7:14 pm
On Jun 23, 6:20 pm, HappyHuman...@yahoo.com wrote:
> We do not have a contract, except an oral contract that the accepted
> bid would not change unless we made changes, and then only the costs
> related to the change would be added to the bid. It was explicitly
> state, orally, that market prices would not affect the bid once we
> "locked in." The only prices that could change would be for our
> subcontractors, and we subcontracted with them directly. There is no
> written contract, unless you consider the bid a contract, which is
> just a bulleted list of materials and labor with prices and a total.
> At the bottom of the list and below the total is a statement that
> says, more or less, that changes to the design will cause costs to be
> added to the bid, but that otherwise the bid is just that, a bid, a
> quoted price to do the job. There is no "performance bond." Nothing
> was ever filed with the register of deeds or any other government
> agency, except a septic plan and a building permit, neither of which
> mention prices, contracts, etc. It was the most unprofessional joke
> I've ever seen, but we trusted them, because it's such a small town
> that we didn't think they would be stupid enough to commit contractor
> suicide and try to screw over a high profile custom like us. We built
> in the most affluent neighborhood in town. Well, they can pretty much
> assume no one else building out here will ever hire them for
> anything. They'll have to go back to $140K hillbilly ranch "spec
> homes."
>
> - Unhappy
>
>
> > If you contract was fixed price, then it may or may not be fixed
> > price. If it was "time and materials", then you pay him his time and
> > materials.
>
> > Just out of curiosity, does he have a performance bond on the project?
>
> > Good luck with it, but you need an attorney.


So let me get this straight. You're building a $290,000 house with no
contract, no architect, and no engineer -- and you're calling the
CONTRACTOR bad. This is a problem you're bring on yourself.

I don't have any idea what the law is in your state, but in NYS it is
awfully difficult to enforce a written contract. In fact, it might
even be unenforceable because it's re land.

If you have a quote, and it is accepted, and signed by both parties,
you're in a better situation. You can claim that it is a de facto
contract. That, a lawyer, and a bundle of money might be able to
solve your problem.

Your only option is to try to starve him out. He wants the last
payment and is willing to sue you for additional funds. Well he might
as well sue you for the whole amount. I think your only option is to
not pay him anything, then offer him full payment in return for a
release.

Good luck with it.


Posted by on June 23, 2007, 7:23 pm
I agree, Pat. That's what I was planning on doing. I'm giving him a
spreadsheet that starts with the amount we agreed upon and adds on
certain changes that we agreed to and their respective costs, like
moving a few walls--nothing major. The final number will be
presented. To receive that amount, he has to give me a new final bill
for that amount. And before he even does that, he has to finish the
dozen or so outstanding tasks. I'm giving him 30 days to finish the
outstanding tasks (minor issues that could take one day with a crew of
2 guys). If he does not finish the tasks in 30 days, I will hire
other contractors and subtract their bills from the amount due. And
again, that final amount due has to be agreed on explicitly with a new
final bill. If he doesn't agree, then he doesn't get anything, and
he'll have to sue for the entire $50K-$70K, at which time I will go
after him for all the other shortcomings in quality and workmanship.

This is war. I'm not going to get screwed over by another
contractor. I've had it. They all play this game. The give a price,
and then, as soon as you accept the price, they go to work on finding
reasons to raise it. I have to fight this on principal. I'm also
going to tell everyone who will listen to stay away from these jokers.

Thanks for your advice.

- Unhappy

> Your only option is to try to starve him out. He wants the last
> payment and is willing to sue you for additional funds. Well he might
> as well sue you for the whole amount. I think your only option is to
> not pay him anything, then offer him full payment in return for a
> release.


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