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New estimate triple original

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ryenose

Junior Member
What is the name of your state (only U.S. law)? Virginia
I contacted a design/construction company to give an estimate to finish my basement. They came and looked over my basement, asked what I was looking to do, and gave me an estimate of $25,000-$30,000 for the construction. I told them that this was within my budget, and I could even go up to $35,000. They then drew up a contract with this stated cost, and then began drawing up plans for construction. We have paid around $5,000 in design fees. At our last meeting, they said the costs for the construction based on their design would be $80,000-$110,000. This is more than triple their estimate, and much more than I can afford. I do not believe they have given me what I asked for, and these designs are now useless to me. Do I have any recourse in recuperating the design fees?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Virginia
I contacted a design/construction company to give an estimate to finish my basement. They came and looked over my basement, asked what I was looking to do, and gave me an estimate of $25,000-$30,000 for the construction. I told them that this was within my budget, and I could even go up to $35,000. They then drew up a contract with this stated cost, and then began drawing up plans for construction. We have paid around $5,000 in design fees. At our last meeting, they said the costs for the construction based on their design would be $80,000-$110,000. This is more than triple their estimate, and much more than I can afford. I do not believe they have given me what I asked for, and these designs are now useless to me. Do I have any recourse in recuperating the design fees?
Have you asked them for an explanation?
 

quincy

Senior Member
What is the name of your state (only U.S. law)? Virginia
I contacted a design/construction company to give an estimate to finish my basement. They came and looked over my basement, asked what I was looking to do, and gave me an estimate of $25,000-$30,000 for the construction. I told them that this was within my budget, and I could even go up to $35,000. They then drew up a contract with this stated cost, and then began drawing up plans for construction. We have paid around $5,000 in design fees. At our last meeting, they said the costs for the construction based on their design would be $80,000-$110,000. This is more than triple their estimate, and much more than I can afford. I do not believe they have given me what I asked for, and these designs are now useless to me. Do I have any recourse in recuperating the design fees?
If you approved any original designs, you would owe the design fee. If a redesign is necessary to fit within your budget, the cost of any redesign is on the design/construction company. If no design was approved by you, then all costs fall on the design/construction company.

Once the company exceeded the costs you agreed to in the contract, the contract was voided.

I suggest you consult with an attorney in your area if the design/construction company is unwilling to provide a refund.
 

ryenose

Junior Member
What is the name of your state (only U.S. law)? Virginia
I contacted a design/construction company to give an estimate to finish my basement. They came and looked over my basement, asked what I was looking to do, and gave me an estimate of $25,000-$30,000 for the construction. I told them that this was within my budget, and I could even go up to $35,000. They then drew up a contract with this stated cost, and then began drawing up plans for construction. We have paid around $5,000 in design fees. At our last meeting, they said the costs for the construction based on their design would be $80,000-$110,000. This is more than triple their estimate, and much more than I can afford. I do not believe they have given me what I asked for, and these designs are now useless to me. Do I have any recourse in recuperating the design fees?
I haven't spoken with them yet...I was hoping to know if I was standing on solid ground legally first. But since we agreed, in writing, that we were paying them to design a project in the 25,000-30,000 dollar range, and the one they created would cost 3 or 4 times that amount, I really feel like they didn't give us anything even close to what we payed for. I feel strongly that a refund is in order, but thought I'd bounce the idea off of some others who may have been in a similar situation. I appreciate the feedback
 

quincy

Senior Member
I haven't spoken with them yet...I was hoping to know if I was standing on solid ground legally first. But since we agreed, in writing, that we were paying them to design a project in the 25,000-30,000 dollar range, and the one they created would cost 3 or 4 times that amount, I really feel like they didn't give us anything even close to what we payed for. I feel strongly that a refund is in order, but thought I'd bounce the idea off of some others who may have been in a similar situation. I appreciate the feedback
You can review the situation with an attorney in your area but you appear to be standing on solid legal ground by demanding a refund. The company did not create a design for you within the parameters given so they are not entitled to the fees.

An example: If I hire a company to create for me a $50,000 cottage and they come back with a design for a palace at a cost of $2.5 million, they have not fulfilled the terms of the project they were hired to do, even if they spent a lot of time and their own money creating the design.

Good luck, ryenose.
 

ryenose

Junior Member
You can review the situation with an attorney in your area but you appear to be standing on solid legal ground by demanding a refund. The company did not create a design for you within the parameters given so they are not entitled to the fees.

An example: If I hire a company to create for me a $50,000 cottage and they come back with a design for a palace at a cost of $2.5 million, they have not fulfilled the terms of the project they were hired to do, even if they spent a lot of time and their own money creating the design.

Good luck, ryenose.
Thanks for the advice. I have a letter written requesting a refund, so hopefully they will recognize they are in the wrong and do the right thing without having to bring a third party into the situation.
 

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