Texas
I am still having problems with the customer from my last post. We corrected all the ac duct according to the customer's spec which I don't even think we were required do so. The customer was ok with the corrections.
Now we are half way finished with the project and he comes up with this. He wants me to account for how much of the initial cash payment $100 I have left. And he want me to start paying for some of the constructions cost out of the $100. The way it has worked is I pay the contractors then I get draws from the customer for those expenses. I roughly have slightly less than half of it and I cant afford to tie up that money and longer than a few days. Can he make demands like this? Below I re typed the portion of the contract that pertains to this. I changed identifying amounts but the proportions are correct.
"The improvements are to be constructed by the builder on a cost plus basis. Owner agrees to pay builder a total contract price equal to the sum the construction cost plus a builder’s fee to cover the services of builder in the amount of $95
Initial cash payment prior to commencement of work owner shall pay builder $100 as a portion of the total contract price. The builder may use the initial cash payment in consideration for initial construction or pre construction expenses, and a portion of the builder’s fee. The initial cash payment may be retained by the builder as liquidated damages if the contract is terminated for any reason other than a builder’s event of default. Builder and owner agree that it is not possible to calculate the exact amount of damages that builder will suffer if this contract is terminated if for any reason other than builder’s default and this amount is reasonable approximation of damages. This amount is in no way a penalty. "
I am still having problems with the customer from my last post. We corrected all the ac duct according to the customer's spec which I don't even think we were required do so. The customer was ok with the corrections.
Now we are half way finished with the project and he comes up with this. He wants me to account for how much of the initial cash payment $100 I have left. And he want me to start paying for some of the constructions cost out of the $100. The way it has worked is I pay the contractors then I get draws from the customer for those expenses. I roughly have slightly less than half of it and I cant afford to tie up that money and longer than a few days. Can he make demands like this? Below I re typed the portion of the contract that pertains to this. I changed identifying amounts but the proportions are correct.
"The improvements are to be constructed by the builder on a cost plus basis. Owner agrees to pay builder a total contract price equal to the sum the construction cost plus a builder’s fee to cover the services of builder in the amount of $95
Initial cash payment prior to commencement of work owner shall pay builder $100 as a portion of the total contract price. The builder may use the initial cash payment in consideration for initial construction or pre construction expenses, and a portion of the builder’s fee. The initial cash payment may be retained by the builder as liquidated damages if the contract is terminated for any reason other than a builder’s event of default. Builder and owner agree that it is not possible to calculate the exact amount of damages that builder will suffer if this contract is terminated if for any reason other than builder’s default and this amount is reasonable approximation of damages. This amount is in no way a penalty. "
