Home Contractor Issues--Advice Please.

Updated on June 18, 2013
L.K. asks from Lafayette, CA
11 answers

We are doing a big home project. I need some advice on how to best deal with our contractor. My husband and I are getting very frustrated with him because it seems that he was not totally up front about the costs involved in getting our project done. Our architect gave him the construction drawings and he gave us the bid based on the "whole" project, supposedly. When he presented the bid to us, it matched what we were willing and able to spend. We felt that we made that clear to him from the very beginning that we have a budget.

He is supposed to build some seating for us in our living room and now he is telling us that he doesn't want to build it. He allowed a certain amount of money in the budget for the seating and he is telling us that he will refund that amount (around $1,000). It's going to cost us a few thousand dollars more to have our cabinetry person build it, instead of the contractor. The contractor also "left out" our bookshelves that were in our construction drawings so now we are needing to figure out if that is in our budget to add to the project. That was ALSO supposed to be part of our bid.

We are very much feeling like he bid the job so that he could get it, but now the reality of the numbers is hitting us and we are feeling forced into either giving the item up because we can't afford it OR accepting that we are going to have to pay thousands of dollars more.

Does anyone have suggestions on how to best deal with this? How can we best approach the issue with the contractor? Has anyone dealt with a similar situation?

Thanks...

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M.C.

answers from Washington DC on

If he agreed to it, on the contract, he can't verbally change his mind. That's breech of contract.

I don't know if you have paid him the full payment or not, it sounds like you did, which was a mistake. Never pay full payment up front. Paying out in installments keeps everyone honest and the work getting done.

You need to talk to a contracts lawyer.

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T.F.

answers from Dallas on

Was your contract very specific and detailed pertaining to the bookshelves, seating, etc?

If so, he is required to do it, BUT... remember if it ends up costing him more and cutting into his profit, you will pay for that either with poorer quality or he conveniently misses something that is sight unseen to you.

Hopefully he was not the lowest bidder... those are the worst. You never, ever go with the lowest bid. Did you see his work and get references from others?

I would have my lawyer review the contract and inspector see what is going on and make sure everything is up to par as far as building codes, quality of the wood, materials, etc.

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S.H.

answers from Honolulu on

When he presented the bid to you both... did you look over it well, and the specifications, and not just looking at his bid price?
On it, his bid would not have included, the bookshelves. For example.
And, is this Contractor, a Sub-Contractor of the Architect? Or you found this guy on your own?
Many architectural firms, have sub-contractors they work with. For example.

He is going to refund the $1000 to you. But he is not building the seating for you, per his bid and the construction project. So, per the contract, what does it say about this? Sure, ALL of that was "supposed" to be a part of his bid and the job performed, per the bid specifications.
But, did you both, ALL, sign a contract? Or you just verbally accepted his bid?

A bid, is a proposal. Of which, it can or cannot be amended etc. It must be signed off on. And there are always things which may happen, on an actual construction site, that is unforeseen.. and may increase, the actual construction costs. What did his proposal say about this? It is called "CHANGE ORDERS."

Now, are those bookshelves, a custom, built-in unit? Of which the Architect designed it and it is a part of the construction? Or is this a separate unit type of bookshelves? ie: something you buy from a store and thus, the Architect specified it per the interior design of the room?

You need to see, what his bid proposal said, versus the contract and about how Change Orders are handled. Or omissions.
Bid proposals are an estimate and a proposal. And once all parties agree to the proposal, then it MAY become binding. But if the Contractor did not even start, the project... then, it MAY still be up for changes/amendments/re-negotiations or retracted before, full agreement by all parties.

Is this a General Contractor? Or just a construction guy who is working independently and this is his side job? Is he licensed? I assume so. Who is his, Boss? Or the firm he works for?
Is he, licensed? And bonded?

Then, do you have, a Contractor or Sub-Contractor Agreement?
And in either case, you need to see how change orders are handled.
But also, he said he will not do... the seating. Was his not doing it, in his bid?

And yes, Cabinetry contractors, are a different category of construction contractors. They charge differently. Each niche in construction and the sub-contractors, all have different ways they charge for a project. But, you do not HAVE to, have your Cabinetry guy, build your seating. That is your, choice, to have the cabinetry guy do your seating.
Now, since the Contractor said he will not build the seating, but he is refunding you the $1000 for it, what does the Contract say about reneging on a contract? Again, this goes back to "Change Orders."
And, do you have in hand, the $1000 the Contractor is supposed to give back to you? You might have to chase him down for that.

Sure, tell him. You take out the Contract you have with your contractor, sit him down, and you SHOW him and TELL him, that he is not upholding the contract. You can take him to small claims court etc.
BUT, also, you should have known and seen, in his bid or proposal... that the "bookshelves" were not in it. So this should not be a surprise.

Did this guy actually start, the project?
Or did you just say "we will hire you...." but did not hash out anything with him nor sign anything?

All bidders bid a project hoping they will get the job.
It does not mean, hiring the "cheapest" one is the best. Your budget, may not even fit.... the scope of what you want done. In the first place. Meaning, maybe what you want done/built in your home, is simply MORE than your budget. So there is budget, and then the reality of what it actually costs, on the low-end or high-end. Any Contractor also has to make a profit. They work. It is work.
And you always have to look at the change orders/contract/proposal/details and specifications/project management/fee schedule/project timelines etc.,... and/or going over it with your Architect. Because, laypeople do not typically understand construction proposals or contractor contracts. Did you see what your Architect thought about all this? That is one place to start.
And sure, you can take the guy to small claims court and/or get an Attorney.

Your Bidder bid on the "whole project." And who knows what method he used to come up with his estimate. But, you chose him because it "matched what we were willing and able to spend... we made it clear to him from the very beginning that we have a budget..." Fine. But did the bid or the proposal... also match... what needed to be done per the project/the construction drawings, too? And each one of those items, were addressed, in the bid proposal and itemized? ie: the bookshelves were in the construction drawings... but was it ALSO in the contractor's bid proposal? Or not? As you said, the contractor "left out" the bookshelves that were in the construction drawings. But you signed off on his proposal, despite?
What does the contract stipulate or not?

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C..

answers from Columbia on

first of all, if he "left out" the bookshelves, HE fixes the mistake.

This is why I HATE home improvement.

I would contact a laywer. You have a contract. He is not upholding the contract. Because now you know he is not above board, you need to deal with him accordingly.

I would also consult with another contractor. You may have to end up replacing him.

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C.O.

answers from Washington DC on

What did he bid and contract to do?

Look at your contract with him. NOT just the bid but the contract you both signed.

IF he signed a contract with you to build the seating, then he is contractually bound to do it. You can take him to small claims court.

DO NOT SIGN ANY COMPLETION certificate. If you do that - you are saying that his work is done and you are happy.

Look at the signed contract you have signed. I can't say it enough. Tell him what he contracted to do or you will take him to court. Don't threaten anything you aren't willing to follow through on.

Good luck!

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J.S.

answers from Hartford on

Get out your contract. He's legally bound to do all of the work that's in the contract for the cost that he agreed to do it for in the contract. He CAN NOT change the contract now, especially not verbally, even if it means he takes a loss on this job. As a business owner, he'll figure out that he needs to make better estimates. As a consumer, you'll figure out that you get what you pay for. If you want quality work, you need quality materials and quality labor. Cheap is as cheap does.

Get a lawyer ASAP.

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K.A.

answers from San Francisco on

I oversee building projects at work, and I have yet to see a job that gets completed at the original budget with no change orders. Something always happens, and the project works best if both parties trust each other to do the right thing when complications arise.

My sweetheart is an electrical contractor and on almost every job he sees evidence of horrible, dangerous (even illegal!), shortcuts taken by a previous electrician. This is what happens when someone with no scruples does whatever he can to get a job completed on budget. At least this guy is being honest with you instead of pretending to be above board and getting away with shoddy work that won't be noticed until after he's gone. If you trust him, work with him to see what can be done. If you don't, cut him loose now and find someone you do. If he resents you for forcing him to do the promised work he doesn't want to do, his work for you is going to reflect that.

In my experience, the best thing to do is ask a lot of questions before you accept the bid about how to handle potential complications. That will give you a pretty good sense of what it will be like to work with that person. Also, someone who asks you lots of questions before bidding has a much better idea of what he is taking on. The quick cheap guy is never the best choice.

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N.W.

answers from Eugene on

Talk to your architect about these issues. He/she may be able to influence the contractor to fulfill his contract without getting a lawyer involved. Especially if the contractor would like to submit bids to the architect in the future.

Attorneys are expensive and you may end up spending more on their fees than you recoup in construction costs. Consider just having an attorney draft a letter reinforcing the contractors obligations and possible consequences of trying to alter portions of the contract after signing.

You can also take the contractor to small claims court.

Personally, I wouldn't want this contractor to build the seating and bookshelves now. He will try to cut corners to save money and you may be stuck with inferior work, which you will have to look at and live with for a long time.

If your contractor "left out" the bookshelves, did you notice this in the itemized bid before you signed the contract? If the bookshelves are not in there, he's not obligated to include them now. It's an oversight and this happens all the time. You are responsible to review all the documents before signing. If it makes you feel any better, it's hard for even the professionals to catch everything. That's why there's usually a 10-15% contingency in the budget to cover these unexpected expenses.

If you still want to build seating in the living room, see if you can save money by having the architect redesign the seats in a way that would make them less expensive to build. Or talk to the cabinet maker about ways to cut your costs by using a less expensive wood, or simpler detailing. Also, if you get a couple bids from other cabinet makers, you may find one with more competitive pricing.

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S.B.

answers from Houston on

Review the contract not the bid. What does it say? Does it say anything about the seating in your living room? Maybe he realized that his abilities are not what he thought they were and he doesn't feel he can do the job. Talk to him about that.

Bookshelves. If you didn't catch that on the contract then you might be out of luck. Again, nice on the drawings but with him its the contract.

After reviewing the contract, have a sit down with him. Discuss your expectations with him.

Most improvements will run over. Lumber goes up, blah blah blah. I was told to always figure at least a 10% overage.

Not sure if an attorney is the way to go because I'm not sure what is in your contract.

J.P.

answers from Lakeland on

Sounds like your contractor is not a carpenter. Do you have a signed contract or is this a verbal agreement?

Making a custom bookcase and seating takes a lot of skill and maybe he didn't realize what exactly you wanted. As least he is willing to credit you the money and is honest up front that he can’t do it. Some people will take the money and disappear. Would you want something half assed that will fall apart in a month?

Also as for budgets, they always go over. Contractors don't do it on purpose sometimes stuff comes up in the middle of the job that is beyond their control. And yes even custom homes have to change the original plans now and then, poop happens.

I would sit down with him and see what he can get done. Maybe you can decide on something a little different without the extra cost.

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A.N.

answers from San Francisco on

Your set of construction drawings is part of the Contract- the bid should include everything in the drawings unless there is a list of Allowance items or Not-In-Contract items.

Did you sign a legal contract with him that he is binding for the content of the Contract drawings?

See if there is a Spec. or details of the Seat or bookshelves in the Drawings. Everyone should be bidding on the same seat or quality thereof. Your contractor could have underbid or others expensive...? If there is no detail, everyone could imagine and bid it differently. There are different qualities of skill, details or materials in carpentry, he could provide anything according to what he thinks!

Ask your contractor what kind of seat could he build with that $1,000 allowance, or the bookstore he should be providing. Then ask yourself if you are willing to accept them or negotiate!

Talk to your Architect for advice. BTW, if you want your architect to redesign or provide more work, be prepare to include his/her fee!

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