Home Improvement Contractor - Licensed Contractors
Home improvement contract question?
We are doing a home improvement project and our contractor gave us an estimate of $33, 000. We are already $6,500 over that estimate and we still have a long way to go before it is finished. Our contract says we are billed on time and materials. Is there any law that prevents a contractor from going 50% over budget (that is probably where we will end up) and just saying "oh well, that is our material and labor costs"? We didn't make any substantial changes that would have increased the budget.
Public Comments
- If he gave you a price that was firm, then pay him the contract price. Laws vary by state. I would say call your state's department of consumer protection.
- If you pay the contractor, your conduct ratifies his changes to it. I suggest you read your contract carefully. An estimate, traditionally speaking, is ONLY an estimate, and has NO effect upon the actual services agreement. I suggest that if you don't like what is going on, you compare the estimate and the actual cost to estimates that other contractors in your area give to you. Go from there to an attorney near you.
- An "estimate" is not the same thing as a "contract." If your contract states "time and materials, not to exceed $33,000 without approval of the homeowner" then he should stop working at $33,000 until you approve additional work. Of course, none of this guarantees that your project will be FINISHED at $33k, just that you won't incur additional charges. If your contract is an open-ended T&M, then that's what you are stuck with. Unfortunately, "budgets" and "estimates" are meaningless. It is the CONTRACT that is enforceable. If this guy is already that far over budget and isn't anywhere near completion, you should have him stop working ASAP, until you can get a reputable contractor in there to do an assessment, and a realistic estimate of what it would take to complete your project. Better yet, get 2 or three reputable contractors in there to do this; all of their estimates should be within the same ballpark. If one varies significantly, you need to examine further. If he botched your job, or ripped you off, you can go after his contractors bond (if you are in a state where contractors are licensed and post bonds).
