Issue with licensed contractor

[rbnetus]

What is the name of your state? CA

I'm having this issue with a licensed contractor who installed a
heating and cooling system at my residence. Initially we agreed
upon a price for a packaged unit installation in the backyard.
I gave him a deposit (50% of the cost (which I found later to be
very high and illegal on his part to ask for that much)) and he
started the installation. Since he hadn't explained to me how big
and visually unapplealing that unit was in the backyard, as soon
as I saw the unit, I decided to change the type of unit (before any real work had started) to a regular furnace and have
it installed in place of my current old unit (in the side yard). At
that time, he told me verbally that the cost to change it would
be about the same and did not give me anything in writing (and
unfortunately since he told me it would be about the same, I
didn't force him to give me another estimate). He took four!!!
months (after repeated phone calls and faxes) to finally finish
the project that was supposed to take about a week or two.
Now after the work is done, he brings out an invoice that's
50% more than the original estimate (about 4000$ more!!!).
The original estimate was almost 8000$. Now the invoice is for
12000$. What should I do? Is there any recourse for me?
Thanks!

 

[hexeliebe]

Tell him you will pay the original estimate and nothing more. He will probably sue you for the difference.

 

[rbnetus]

Thanks hexeliebe,
Yes, I told him that I would pay him the original estimate and he
left saying he would sue me. Does that mean that I have to let
it go through the legal system? I was wondering if I can go
through organizations like the license board or BBB and see if
that helps too and avoid these legal hassles.
Thanks again!

 

[rbnetus]

Actually, one of the reasons I don't want to go through a long
drawn out legal process now is because I plan to sell the
property soon. If I paid him his invoice amount now (just to get
the permit and avoid any liens on the property that would
prevent a sale(?)) and then go after him later in small claims court
and/or using the license board and/or the BBB, would that work?
Thanks!

 

[hexeliebe]

If you pay him the new invoice amount now then it's basically over. You can always sue him later, but your chances of recovering are slim since you've already paid for the work done.

The reason I told you to pay the agreed upon estimate is because it's the ONLY thing you have in writing. He may try to sue you later for the new invoice, but he's going to have to explain why the big difference and prove it's justifyable.

And then he's going to have to prove that he had your permission to make the changes WITH the new price.

As for the suit stopping a sale, the answer to that is yes and no. I only know the laws in Arkansas and Tennessee so this is a guess, however, as a licensed General Contractor he's allowed to go to court for a materialman's lien on monies owed for the work he's done. However, he would have to again prove that you approved not only the work but also the price.

IF he sues in small claims court he could get a judgement lien if he wins his case. But again, the burden of proof is on him to prove not only that the work was approved but also the price.

Both these scenarios require a burden of proof before a lien is allowed.

As for the other organizations, the BBB isn't that powerful. All they will do is file the complaint but they have no regulatory authority.

As for the licensing board, you could and should file a complaint with them. But, before you do, make sure you get additional estimates on the price of the replacement unit is in line with the one replaced and an estimate on installing it.

 

[rbnetus]

Thanks hexeliebe.
Yes, you're right. The BBB is not a very powerful org, but atleast it notes whether or not the company has a satisfactory record.
Not surprisingly (my bad for not checking the record on
him earlier), he has an unsatisfactory record with the BBB and 2 complaints, one for services and one for billing!