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Trouble with Contractor

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cag665

Junior Member
What is the name of your state? Minnesota

We are having trouble with a general contractor hired to perform a major remodeling job (gutted farmhouse).

He was doing work not specified in the contract and presenting us with a bill after completion without a change order. The job was suspose to be completed by Nov. 30, 2005. He has exceeded the contract price, and is now trying to charge us for items specifically in the contract (carpet, etc.). And now he is not paying subcontractors since we told him we are not paying him any more money outside the contract price.

Unfortunately, we have paid him too much. His lawyer has given us notice that this can only be resolved by arbitration (through the AAA) as provided in the contract.

We have alot of this documented as we have written several letters detailing our concerns to him. He even signed a home-written document in Jan. saying there would be no more "extra" charges.

I do not know if we need a lawyer or not, but my guess is that we will be out approx. $20,000.

Any help or advice would be greatly appreciated!!!
 


John Se

Member
Question some things unclear

cag665 said:
He was doing work not specified in the contract and presenting us with a bill after completion without a change order.
Like what: why would the guy do work he is not supposed to do?

The job was suspose to be completed by Nov. 30, 2005.
finish dates are estimates, contrator is motivated to finish by being paid

He has exceeded the contract price,
Whats this mean?, the price is the price. How does one exceed the contract price?

and is now trying to charge us for items specifically in the contract (carpet, etc.).

You still have to pay for stuff you are getting. do you expect things for free?


Unfortunately, we have paid him too much.

why would you pay "too much"

I do not know if we need a lawyer or not, but my guess is that we will be out approx. $20,000.

Are you "out" for paying for things you did not get? or out because a remodel cost more than you wanted because of unseen items like further repairs necessary but unseen prior?

QUOTE]

How old is this farmhouse? isnt it reasonable to expect unforseen expenses?
 

fairisfair

Senior Member
John Se said:
cag665 said:
He was doing work not specified in the contract and presenting us with a bill after completion without a change order.
Like what: why would the guy do work he is not supposed to do?

**This is a standard ruse by contractors, that is why change orders are required,
to prevent the contractor from completing work that was either not in the contract or not approved of by the homeowner. The contractor has the responsibility to discuss with the homeowner, write a change order, and have it signed for any work not covered by the original contract.


The job was suspose to be completed by Nov. 30, 2005.
finish dates are estimates, contrator is motivated to finish by being paid

**baloney. finish dates are finish dates, and many contracts provide for penalties to the contractor if the project is not completed in a timely manner

He has exceeded the contract price,
Whats this mean?, the price is the price. How does one exceed the contract price?

**yes, if you have paid him more than the completed work requires (draws) and for extras, I would assume that he has.

and is now trying to charge us for items specifically in the contract (carpet, etc.).

You still have to pay for stuff you are getting. do you expect things for free?

**no most homeowners expect the contractor to be able to estimate his costs for a job, both in material and labor costs.
Unfortunately, we have paid him too much.

why would you pay "too much"B]

I do not know if we need a lawyer or not, but my guess is that we will be out approx. $20,000.

Are you "out" for paying for things you did not get? or out because a remodel cost more than you wanted because of unseen items like further repairs necessary but unseen prior?]

**It doesn't matter why, the contractor is the one responsible for being able to complete the job at the contract price, not the homeownerQUOTE]

How old is this farmhouse? isnt it reasonable to expect unforseen expenses?
OP was your contractor licensed??

If so I would start with:

http://www.state.mn.us/portal/mn/jsp/content.do?programid=536884624&id=-536881377&agency=Commerce
 
Last edited:

panzertanker

Senior Member
cag665 said:
I do not know if we need a lawyer or not, but my guess is that we will be out approx. $20,000.

Any help or advice would be greatly appreciated!!!
YES, you do need a lawyer, yesterday!
Get your contract and yourself to an attorney ASAP and get this fixed...
 

cag665

Junior Member
The problem is, we have satisfied the "unforseen" extras, but we refuse to pay for "extras" that are in the contract. We are not disputing the fact that there may have been things unforseen, but we already paid for them. We were concerned about the communication process - contractor not saying anything, doing the work, then presenting a bill without notifying us or a change order. Example: subcontractors running plumbing and heating ducts along ceiling instead of down the wall as figured - thus $2400 extra to build soffits for enclosing them.

We do not expect to pay extra for things that are in the contract. We have a contract price, and it was not negotiable (or an "open checkbook" type of thing). Otherwise, a contractor can say the bill is "x" and then charge you 100 times that amount!

We have been paying him according to the contract, drawing monthly. But the project is almost 12 month going and it is only about 60% complete. We have paid him more than 60% - more like 90%!!! And he still wants more than the contract price.
 

John Se

Member
Extras???

cag665 said:
but we refuse to pay for "extras" that are in the contract.
We do not expect to pay extra for things that are in the contract.
If they are in the contract why dont you think you should pay for them? what makes them "Extra" if they are the contract, wouldnt that just be items in the contract?

You are confusing me
 

fairisfair

Senior Member
John Se said:
If they are in the contract why dont you think you should pay for them? what makes them "Extra" if they are the contract, wouldnt that just be items in the contract?

You are confusing me
In other words, he is refusing to pay again, for items that were covered by the contract. For example, let's say flooring was covered in the contract, now he is getting a bill for tile.
 

cag665

Junior Member
fairisfair said:
In other words, he is refusing to pay again, for items that were covered by the contract. For example, let's say flooring was covered in the contract, now he is getting a bill for tile.

EXACTLY. We would be paying twice.
 

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