Modular home surcharge.

[Noahsma]

I ordered a modular home which involved a signed contract with price. The contract clearly states that the price of the home quoted, cannot change under any circumstance. However, prices of any options you choose, can, which are priced separately….not included in the home price. I hired an engineer to design the septic system which had to be passed by the county before any further steps could be taken, however I moved ahead with the foundation after permission from my township. The engineer stated on the day I hired him and submitted a deposit, that the design should take no more than 3-5 weeks. He didn’t take the first step for 5 months, then the first 2 designs he submitted to the county were rejected for missing information and errors, etc. The county told me he refused to make the corrections they were requesting and was in constant disagreement with them. He continued to argue with them until the very end. Almost 15 months to the day, I finally received my county stamped design. During the entire process I was in constant contact with the modular company, either by phone, in person or email. They even thanked me several times for keeping them updated and stated that many people do not. After I received the design and able to move forward, they informed me that they were surcharging me for the delay because prices of material had gone up. Not once had this ever been mentioned during the entire delay. Had it been mentioned, I would have fired the engineer immediately and hired another. They couldn’t give me the amount of the surcharge at that time. They notified me yesterday that the surcharge will be $18,000. That is a 52% surcharge. Can I sue the engineer? Does the modular company have a right to surcharge me 52%? Do I have a legal right to ask them for specific prices to prove their justification a 52% surcharge? I find it hard to believe that building material has doubled in price in 15 months. On an added note, I could not get a hold of the modular company for the first 4 months after signing the contract, so 4 months is on them. During that 4 month period, I actually had fear that they were going out of business and I would lose my $17,000 deposit.

 

[Just Blue]

I ordered a modular home which involved a signed contract with price. The contract clearly states that the price of the home quoted, cannot change under any circumstance. However, prices of any options you choose, can, which are priced separately….not included in the home price. I hired an engineer to design the septic system which had to be passed by the county before any further steps could be taken, however I moved ahead with the foundation after permission from my township. The engineer stated on the day I hired him and submitted a deposit, that the design should take no more than 3-5 weeks. He didn’t take the first step for 5 months, then the first 2 designs he submitted to the county were rejected for missing information and errors, etc. The county told me he refused to make the corrections they were requesting and was in constant disagreement with them. He continued to argue with them until the very end. Almost 15 months to the day, I finally received my county stamped design. During the entire process I was in constant contact with the modular company, either by phone, in person or email. They even thanked me several times for keeping them updated and stated that many people do not. After I received the design and able to move forward, they informed me that they were surcharging me for the delay because prices of material had gone up. Not once had this ever been mentioned during the entire delay. Had it been mentioned, I would have fired the engineer immediately and hired another. They couldn’t give me the amount of the surcharge at that time. They notified me yesterday that the surcharge will be $18,000. That is a 52% surcharge. Can I sue the engineer? Does the modular company have a right to surcharge me 52%? Do I have a legal right to ask them for specific prices to prove their justification a 52% surcharge? I find it hard to believe that building material has doubled in price in 15 months. On an added note, I could not get a hold of the modular company for the first 4 months after signing the contract, so 4 months is on them. During that 4 month period, I actually had fear that they were going out of business and I would lose my $17,000 deposit.

What state?

 

[Noahsma]

New Jersey.

 

[PayrollHRGuy]

The engineer stated on the day I hired him and submitted a deposit, that the design should take no more than 3-5 weeks. He didn’t take the first step for 5 months,

Why would you wait at least 5 months for a job that was supposed to be done in 3-5 weeks?

 

[Noahsma]

Many reasons. I guess the number one reason being that I was stupid...and I just didn't have the nerve to fire him. And I had deep belief that the delay had purpose. My husband has a severe seizure disorder and the timing of his seizures have always been at the right place at the right time. That experience has caused me to believe such things. I did move along with other aspects of the project. I didn't just sit back and do nothing. I made calls to the engineer constantly and drove there in person many, many times. He was never there and I could only speak to the secretary.

 

[PayrollHRGuy]

You may have a claim against the guy. I think your own inaction is going to hurt you in court. I'd strongly suggest you speak to a lawyer soon. Do not put it off.

As for the rights of the builder to surcharge you. Nobody can answer that without seeing the contract you have with them. This will be something else for your lawyer to look at. But considering the costs of things like aluminum & steal have jumped because of tariffs 52%, while high, may not be over the top.

Depending on the total cost you may be better off walking away from the $17K.

 

[Noahsma]

They wanted another deposit during the process so they now have $28,000 of my money. If I had only the $17,000 to lose, I'd definitely walk away. I have not been pleased with them from the start. Nothing major, but a lot of little things have concerned me. But they were close by and being the only driver in the household with a husband who can have a seizure at any time, it was important that I chose a company that was fairly close.

 

[PayrollHRGuy]

What makes you think they are going out of business and if you had that concern why would you give them more money?

 

[Noahsma]

I only thought they were going out of business the first few months when I couldn't get a hold of them after signing the contract and leaving the first $17,000 deposit. I had had 2 other modular company's I was working with prior go out of business, so I was jumpy. During the septic delay, I was in constant contact, so my fear dissipated. I had also been there unperson numerous times and it was always busy. The contract states the dates that deposits are required so it was not alarming to have to submit another. All the building related contracts I've signed have been designed the same way.

 

[LdiJ]

I only thought they were going out of business the first few months when I couldn't get a hold of them after signing the contract and leaving the first $17,000 deposit. I had had 2 other modular company's I was working with prior go out of business, so I was jumpy. During the septic delay, I was in constant contact, so my fear dissipated. I had also been there unperson numerous times and it was always busy. The contract states the dates that deposits are required so it was not alarming to have to submit another. All the building related contracts I've signed have been designed the same way.

Now that I think of it, they had a $17,000 deposit which I suspect was supposed to be used to purchase the materials. So why didn't they go ahead and purchase the materials before the prices went up? They had the money to do so.

 

[Zigner]

Many reasons. I guess the number one reason being that I was stupid...and I just didn't have the nerve to fire him. And I had deep belief that the delay had purpose. My husband has a severe seizure disorder and the timing of his seizures have always been at the right place at the right time. That experience has caused me to believe such things.

Are you saying that the fortuitous, yet entirely coincidental, timing of your husband's seizures defines how you treat all other aspects of your life?

 

[PayrollHRGuy]

Now that I think of it, they had a $17,000 deposit which I suspect was supposed to be used to purchase the materials. So why didn't they go ahead and purchase the materials before the prices went up? They had the money to do so.

Probably because they don't have a place to store either the materials or the built home if they can't move it to the site.

 

[Zigner]

Now that I think of it, they had a $17,000 deposit which I suspect was supposed to be used to purchase the materials. So why didn't they go ahead and purchase the materials before the prices went up? They had the money to do so.

Where in the OP's contract does it define HOW they use the deposits?

 

[LdiJ]

Probably because they don't have a place to store either the materials or the built home if they can't move it to the site.

That is certainly possible.

 

[PayrollHRGuy]

Where in the OP's contract does it define HOW they use the deposits?

Yep, they could use it for beer and hookers as long as they deliver the house on time.