What is the name of your state? Oklahoma
We built a house "cost-plus" and we signed a contract saying we'd pay for all invoices plus a builder's fee. A couple of days before closing our builder's company sent us an email saying that they'd have all invoices 2 days before closing. They also wrote that they'd build in $10,000 worth of padding into the price and that they'd lower the total cost if there aren't any overages. On the day of closing, we were told (nothing in writing) they would maintain the final cost, but would write us a check for the difference if any of the money is left over. They signed the standard closing documents stating that all subcontractors had been paid in full and there was nothing outstanding.
It is now almost 1 month after closing and we receive notification from the builder's company that additional invoices came in, so the $10,000 of padding weren't sufficient and they went almost $3,000 over (so their final estimate was $13,000 off). They say we are obligated to pay the difference since the house is "cost plus", eventhough they certified on the day of closing that they had received all invoices and everything had been paid or would be paid.
I understand we'll never see the $10,000, but my question is are we obligated to pay for these additional invoices even almost 1 month after closing? We did sign a contract saying we'd pay for all invoices, however they signed a contract stating that all cost had been taken care of. In the grand scheme of things, it isn't a lot of money, but we feel like we got ripped off throughout the entire process and this is a parting shot.
Can they place a lien on our house? If they don't pay their subcontractors, can these subcontractors place a lien on our house?
Thanks for your advice.What is the name of your state?
We built a house "cost-plus" and we signed a contract saying we'd pay for all invoices plus a builder's fee. A couple of days before closing our builder's company sent us an email saying that they'd have all invoices 2 days before closing. They also wrote that they'd build in $10,000 worth of padding into the price and that they'd lower the total cost if there aren't any overages. On the day of closing, we were told (nothing in writing) they would maintain the final cost, but would write us a check for the difference if any of the money is left over. They signed the standard closing documents stating that all subcontractors had been paid in full and there was nothing outstanding.
It is now almost 1 month after closing and we receive notification from the builder's company that additional invoices came in, so the $10,000 of padding weren't sufficient and they went almost $3,000 over (so their final estimate was $13,000 off). They say we are obligated to pay the difference since the house is "cost plus", eventhough they certified on the day of closing that they had received all invoices and everything had been paid or would be paid.
I understand we'll never see the $10,000, but my question is are we obligated to pay for these additional invoices even almost 1 month after closing? We did sign a contract saying we'd pay for all invoices, however they signed a contract stating that all cost had been taken care of. In the grand scheme of things, it isn't a lot of money, but we feel like we got ripped off throughout the entire process and this is a parting shot.
Can they place a lien on our house? If they don't pay their subcontractors, can these subcontractors place a lien on our house?
Thanks for your advice.What is the name of your state?