New estimate triple original

[ryenose]

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]

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]

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]

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]

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]

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.

 

[quincy]

I will hope for you the same. Good luck.