Scope of work change on contract

[Jchopper70]

State of California

I will try to start of simply here.

My company had a signed contract with our customer to do a pre determined value of work, will say 10,000 linear feet of wiring.

Half way through the first day of the project the customer said they wanted to decrease the linear footage of the wiring. We verbally explained then and there that it wouldn't change the price of the project because the new layout requested created additional layout labor even though less wire installation was involved. The customer said they understood and told us to proceed anyways.

After the project was completed we tried to collect on the invoice and the customer said he would only pay a partial amount of the contract.

My question is what is my legal footing here? More specifically, have I lost my ability to collect on the signed contract because of the reduced values that were installed?

I hope this makes sense and thank you in advanced.

JPF

 

[justalayman]

what is YOUR legal footing here? That depends on whether you are the owner of the company or simply an employee.


did you get a written change order regarding the scope of work? If not, what will you say if they argue you did not install the wiring per the contract?

 

[latigo]

State of California

I will try to start of simply here.

My company had a signed contract with our customer to do a pre determined value of work, will say 10,000 linear feet of wiring.

Half way through the first day of the project the customer said they wanted to decrease the linear footage of the wiring. We verbally explained then and there that it wouldn't change the price of the project because the new layout requested created additional layout labor even though less wire installation was involved. The customer said they understood and told us to proceed anyways.

After the project was completed we tried to collect on the invoice and the customer said he would only pay a partial amount of the contract.

My question is what is my legal footing here? More specifically, have I lost my ability to collect on the signed contract because of the reduced values that were installed?

I hope this makes sense and thank you in advanced.

JPF

(Clever pun!)

Written agreements can of course, be modified verbally. But I don't see the principal being able to show that you verbally agreed to a reduced contract price. Such a reduced figure doesn't seem to have even proposed by the principal. Plus, the burden of proving such a modification by a preponderance of the evidence rests on his shoulders not yours.

But what about the contract itself? Doesn't it require that all changes shall be in writing?

If I were you I would file my mechanics lien, sue to have it foreclosed and hang tough on the notion that he propose it, you did not agree and he confirmed the original price allowing you to proceed with the work at the contract price. Which obviously you would not have done had he not OK'd the original deal.

 

[justalayman]

(Clever pun!)

Written agreements can of course, be modified verbally. But I don't see the principal being able to show that you verbally agreed to a reduced contract price. Such a reduced figure doesn't seem to have even proposed by the principal. Plus, the burden of proving such a modification by a preponderance of the evidence rests on his shoulders not yours.

But what about the contract itself? Doesn't it require that all changes shall be in writing?

If I were you I would file my mechanics lien, sue to have it foreclosed and hang tough on the notion that he propose it, you did not agree and he confirmed the original price allowing you to proceed with the work at the contract price. Which obviously you would not have done had he not OK'd the original deal.

and if the customer is smart he will argue the OP has not completed the contract and there was no change requested or simply settle on paying a lesser amount, something like the amount based on the percentage of wire installed compared to the original contract.

I work in a construction oriented business and I can assure you there are many contractors that will attempt to install work not quite as the contract calls for hoping nobody will ever notice. Along with that they will attempt to argue it was installed as the customer allowed (change without a change order). The bottom line in construction contracts; if it isn't in writing figure it is going to be disputed. Nobody works on a handshake anymore and often times the courts have ruled that if it isn't in writing, it really isn't what was agreed to, especially given everybody has this nice written contract they can refer to if there are any problems.

 

[latigo]

and if the customer is smart he will argue the OP has not completed the contract and there was no change requested or simply settle on paying a lesser amount, something like the amount based on the percentage of wire installed compared to the original contract.

I work in a construction oriented business and I can assure you there are many contractors that will attempt to install work not quite as the contract calls for hoping nobody will ever notice. Along with that they will attempt to argue it was installed as the customer allowed (change without a change order). The bottom line in construction contracts; if it isn't in writing figure it is going to be disputed. Nobody works on a handshake anymore and often times the courts have ruled that if it isn't in writing, it really isn't what was agreed to, especially given everybody has this nice written contract they can refer to if there are any problems.

(No disrespect intended, in fact with all due respect for your intelligent contributions; but now I understand how you are able to afford the time spent in here. You aren't on your own clock.)

That said, I learned early on in my many, many years in private practice as a trial lawyer (btw since retired) that clients don't go to a lawyer to be told what they cannot do.

Naturally all can't do what they would like to do or mistakenly think they have the right to do. But you start out thinking/speaking negatively, as I see with you in this thread, your reputation will suffer and they won't be coming around.

NOW this gentleman contractor tells us that a discussion with the principal concerning lowering the contract price ended with the principal affirming the original price.

And let me "assure" you that I am not about to call the man a liar or being guilty of shoddy workmanship or that he attempted "to install work not quite as the contract calls for hoping nobody will ever notice"!

Also it is very true that the courts will not enforce a verbal change to a written contract, WHEN the agreement calls for such changes to be in writing.

Plus it works both ways!

 

[justalayman]

latigo;3340238](No disrespect intended, in fact with all due respect for your intelligent contributions; but now I understand how you are able to afford the time spent in here. You aren't on your own clock.)

I work all the time. It's just that some is paid, with money, and some is paid with other types of remuneration/ There are a full 24 hours in every day, 168 in a week and I commit about 1/5 of them to sleeping and the guys with the money demand about 60 of those remaining. The rest are mine.

but many thanks for the compliment. It really does mean a lot, especially given my lot in life as it is.

That said, I learned early on in my many, many years in private practice as a trial lawyer (btw since retired) that clients don't go to a lawyer to be told what they cannot do.

civil or criminal if you don't mind me asking? Given your advice here I would suspect typically civil law.

Naturally all can't do what they would like to do or mistakenly think they have the right to do. But you start out thinking/speaking negatively, as I see with you in this thread, your reputation will suffer and they won't be coming around.

I often end up being devil's advocate, even if it was not my real intention. It does provide a benefit, at least here, as it can bring out the best in those trained to do what I muddle through here./

NOW this gentleman contractor tells us that a discussion with the principal concerning lowering the contract price ended with the principal affirming the original price.

right and since the agreement was verbal and the price is identical, that means the OP is going to have to prove the discussion ever took place. Unless there is something to document the change of the scope of work with the price remaining the same, it becomes difficult for the OP to prove anything other than he has a written contract where the performance required by the OP has not been fulfilled.

And let me "assure" you that I am not about to call the man a liar or being guilty of shoddy workmanship or that he attempted "to install work not quite as the contract calls for hoping nobody will ever notice"!

not suggesting anybody calls anybody anything. I was simply relating real world experience with the intent of what can happen where there would be a less than "to the letter of the contract" installation.

Also it is very true that the courts will not enforce a verbal change to a written contract, WHEN the agreement calls for such changes to be in writing.

but when it doesn't call for a written agreement, the person arguing there was a change is the one that is required to prove his claim. Hopefully OP has some sort of documentation of the change, even if there was no requirement there be a written change order in the contract. Often times those little notes we write in job meetings are all we have to prove our claims and while not always, they can be what allows us to win.

 

[Jchopper70]

More Info

First and foremost thank you both for taking the time to respond.

just to clarify here are a few more facts:

I am the owner of a contracting business and my customer was another contractor working for the building owner.

I am not a wire installer, but I am trying to keep things vague so as to not create more legal trouble for myself by talking about my situation publicly.

When my customer changed his mind on the layout, he requested a layout far more complex than the originally agreed upon design. With that being stated the labor nearly tripled and resulted in double time rates for our employees.

My contract states that I will layout and install my product but it doesn't say what part of the lump sum price goes to layout and what portion goes to installing. This was all communicated and understood in the field at the time off the change.

At this point my customer has come at us from several angles to get the price reduced.

Any other advice would be appreciated.

JPF

 

[LdiJ]

First and foremost thank you both for taking the time to respond.

just to clarify here are a few more facts:

I am the owner of a contracting business and my customer was another contractor working for the building owner.

I am not a wire installer, but I am trying to keep things vague so as to not create more legal trouble for myself by talking about my situation publicly.

When my customer changed his mind on the layout, he requested a layout far more complex than the originally agreed upon design. With that being stated the labor nearly tripled and resulted in double time rates for our employees.

My contract states that I will layout and install my product but it doesn't say what part of the lump sum price goes to layout and what portion goes to installing. This was all communicated and understood in the field at the time off the change.

At this point my customer has come at us from several angles to get the price reduced.

Any other advice would be appreciated.

JPF

I disagree with Justalayman on this one. I do not think that the burden of proof is on you, I think that the burden of proof is on your customer.

 

[justalayman]

I disagree with Justalayman on this one. I do not think that the burden of proof is on you, I think that the burden of proof is on your customer.

So the customer holds up the contract; proof provided. The ball's yours

Jchopper70
What do you have, if anything, to show there was a change in the scope of work? As I said before; if your customer says; you aren't even close to the requirements of the contract.