Final price dispute with a building contractor.

[nebraskamitch]

What is the name of your state (only U.S. law)? Minnesota

I recently hired a contractor to build a new garage for me. In his initial estimate he quoted me a total of $16,250.00 to be paid as follows: $1000 down, $3500 after concrete is poured, $5000 when he starts building, $5500 after the garage door is installed, and the remaining balance after the final inspection. The contractor had me pay the subcontractor who poured the concrete directly and it turned out that the estimate for the concrete was too high and they only charged me $3203.80. When I received the final bill the contractor showed me owing $1546.20, whereas I thought I only owed $1250. The difference between our two amounts is the exactly the amount the concrete was over estimated. So, who is entitled to the $296.20? Does he get that money simply for over estimating the cost of one of his subcontractors or do I get to keep that money?

 

[OHRoadwarrior]

It appears he is taking it as an overhead markup for providing the coordination of services. If so, pay it.

 

[LdiJ]

What is the name of your state (only U.S. law)? Minnesota

I recently hired a contractor to build a new garage for me. In his initial estimate he quoted me a total of $16,250.00 to be paid as follows: $1000 down, $3500 after concrete is poured, $5000 when he starts building, $5500 after the garage door is installed, and the remaining balance after the final inspection. The contractor had me pay the subcontractor who poured the concrete directly and it turned out that the estimate for the concrete was too high and they only charged me $3203.80. When I received the final bill the contractor showed me owing $1546.20, whereas I thought I only owed $1250. The difference between our two amounts is the exactly the amount the concrete was over estimated. So, who is entitled to the $296.20? Does he get that money simply for over estimating the cost of one of his subcontractors or do I get to keep that money?

3500.00 was NOT an estimate for the cost of the concrete. It was an amount to be paid by you towards the cost of the entire project. I sincerely doubt that your 1000.00 down covered the full cost of building the foundation for the concrete to be poured into. You notice that all of your payment amounts are nice round numbers.

 

[TigerD]

hmmnnn. 5500 + 5000 + 3500 + 1000 = $15,000

Quoted price: $16,250
Total paid: $15,000
Balance due: $1,250

It would appear that the cost of the concrete is a red herring in the fact pattern.

OP: Do you have a written contract? Or a written quote?
Does the written agreement say anything about changes in price?
Did you authorize any changes in the initial plans during construction?
Are there any taxes or permits that you didn't pay for?

There are a number of reasons that the final bill would be different from the estimate. But frankly, your difference is less than 2 percent and less than $300. I would just pay it. Don't misunderstand -- I'd ask why it was different from the quote, but $300 is not enough for me to go through the hassle of fighting with the contractor, whom you may need if there are any call backs on the building in the near future.

DC