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Contractor underbid job, now demanding more money

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mattwm

Junior Member
What is the name of your state (only U.S. law)? Massachusetts

I hired a landscaper to do some work on my property last year. During our first meeting I gave the contractor a to-scale drawing of the scope, which by large consisted of aluminum edging installation and distribution of crushed stone along the edging. Also included was spring clean up, some lawn repair, and some additional crushed stone behind a retaining wall. On the drawing was an estimated material list that I used to help budget the project. I didn't know how accurate my estimate would be, and the contractor did spend time on my property measuring as needed so I assumed there would be some discrepancy.

Before the work began there was no contract signed; just a proposal for $5,900 that was given to me which was very detailed and broke down everything which accurately depicted the drawing that I gave him. Some of his material numbers were different than mine, and surprisingly, our numbers were close except he estimated a little less stone than I.

On day 1 I expanded the edging and stone to another area of the yard. As the project progressed, the contractor came to me and said he would need additional stone to get the coverage as originally proposed. He couldn't tell me how much he had already purchased and distributed (without looking at his receipts), and couldn't tell me how much more would be needed. Originally, he has proposed 6 cu of stone... figuring he couldn't need more than another 6 cu of stone ($600 of material/labor), I told him to continue. He didn't ask for money at this point, just kind of shaked his head at how off he was. The additional 6 cu would eat up the 10% overhead I had on the project. This happened again with the stone behind the wall.

Not once did the contractor come to be and ask for more money, nor had he implied that I would have to pay more than originally proposed. But I knew I would end up paying more because of the stone, so I was expecting some extra. Once the job was complete, the contractor sent me an invoice that totaled the project at $16,500. The work that I added on day 1 (the expansion of the edging and stone) came to $3,200, which was shocking considering it was only a fraction of original proposed work for $5,900.

Deducting the $3,200, $5,900 somehow jumped to $13,300. He wouldn't return my call to discuss the invoice, so after waiting a couple weeks I decided to pay him $11,700 which covered $5,900 + $3,200 + $2,600 (which covered the extra material required to complete the project). The remaining balance was for labor that I refused to pay due to the extreme underbid, and that he never once came to me and told me his proposal was less than 1/2 of what it should have been. He wrote me a letter saying that other than the additional stone, everything took much longer than expected, requiring more man power. He also admitted that he used my estimate of materials, which I thought was odd considering he took the time to measure the property himself. He obviously knew my numbers were low and wanted to win the bid.

I understand that I went about things the wrong way here, from not getting a signed contract (I thought the proposal was good enough), to adding scope without getting a price for it, and not verifying how much additional material would be needed. Sometimes I am too trustful in other people and expect to be treated fairly.

A year has now passed since the work was completed and this contractor as already threatened to sell my debt to a collection agency, take me court, has given me deadlines that have come and passed. He is still sending me invoices on a monthly basis with the most recent including a years worth of interest at 18%.

I think in MA the statute of limitations is 6 years so I'm wondering if I should have anything to worry about at this point. Any advice would be appreciated.
 


justalayman

Senior Member
You have a long to go if you are considering waiting out the statete of limitations. As long as he files one day before the sol expires he's good to go.


Obviously one huge Mistake is you handing him a proposal with quanties specified. Then, when you added work. Without numbers attached to it it is wide open.

You thinking you could add work and the bill not increase is ignorance or worse.

So, the issue is: was your "proposal" an actual bid on his part or was it an estimate. If a bid, you can hold him to it. Of course anything outside of the original contract is wide open unless you pinned numbers to it n
If an estimate, it's a tough call. If he can support his claim as reasonable for the work performed, he might win if you are sued.
 

mattwm

Junior Member
Thank you for the response.

Why would giving him a list of materials be a mistake? Wouldn't it be his responsibility to bid the project appropriately? I'm just a dumb homeowner.

It was definitely a bid. The extra work that I added can be differentiated by comparing the proposal to the final invoice. All work that was added has been paid for in full.. which is not being questioned here.

The drawing that was given to the contractor can be compared to the work actually performed, to remove any questions as to what was added over and above the proposal.
 

justalayman

Senior Member
Why is it wrong to notice him a list of materials: because if you included too much you still pay the bid price and have left over material. If you didn't include enough you have purchase any extra needed. If you told him to bid "install 4" gravel over area indicated in drawing" it would be up to him to provide the necessary amount, period.

The fact the additional work was charged separately does not make the original work a bid. Contractors often provide estimates rather than an actual bid. I cannot say what you had and it not being in writing makes it harder to determine what it is. Your own statements make it questionable as you speak to a proposal rather than a contract.

If it is an actual bid, well, it is what it is. You pay him whatever you contracted for plus the extra and you're done.

So, when you did speak to him and informed him he had bid. $XXXX for the listed scope of work and it doesn't matter if it took longer than the contractor thought it would (since a bid contract is not affected by the bidders mistake) he said what?

If you cannot come to an agreement you can either wait to see if he sues you or sue him seeking s declaratory judgment with the court determining if you owe anything more.
 

mattwm

Junior Member
He gave me a three page proposal that had everything itemized with a dollar quantity for material and labor. I didn't sign the proposal, just told him it looked OK and to start as soon as possible. I don't know if this is considered a contract or not.

When I told him I wasn't paying any more than what I did, he basically told me that I acknowledged and accepted the fact that the job was going to cost more, which is untrue. I did acknowledge him, and was expecting there to be a charge for some stone, but I had no idea we were talking thousands of dollars. He had some difficulty with digging for the edging due to rocks in the ground, which really isn't my problem. As to why everything else in the proposal, from spring cleanup to lawn repair, ending up costing more there was no explanation. Literary everything ended up costing more.

Basically it's his word against mine, but I feel like the proposal would back me up more than him. I really don't want to drag this out in court but I am optimistic should it head that way. So I am content with just waiting it out.. I just don't know if I should be.
 

justalayman

Senior Member
The only negative I can see concerning waiting is if this ends up on your credit report. If it does and you wish to do something about it you would have to sue him seeking a declaratory judgment where the court will determine what you owe. Otherwise, unless he sues you you can just wait it out.
 

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