Can general contractor raise price after house is finished?

All boils down to what you signed, not what the contractor or you say or think. Dave

Reply to
Dave
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Hello In a court the contractor would be entitled to fair market value for his services. In construction 13,000 is not a LOT of money, just depends on the work I guess.

I'd pay the extra 13, not say, aha! you didn't put it in writing.

if contractor is getting fair market value, then 13,000 will come in quick (he should have no problem showing the court 13,000 $'s of extra work) it could run into 10's of extra 1,000's fast.

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Reply to
Tony

"PeterD"> wrote

They do it all the time. Every case has a winner and a loser. As long as they get their fee *up front* they don't care who wins. Why do you think they call em sharks?

Reply to
Don

Why would anyone want one of those? ; D

Reply to
Michael Bulatovich

Correct. I guess I should have said "Unless you are willing to pay up-front, lawyers won't take a guarnteed to loose case!"

Say that contractor walks into a lawyer's office with the story the OP gave (slanted to his advantage, of course, just as the OPs story is slanted that way, too.)

The lawyer will not handle this on a contingency, or for that matter, probably even if paid in advance (if the lawyer is ethical, please no comments on that possibility!) Instead the lawyer may say: "Try small claims court to get the max (usualyl $5K) or just ring it up to experience. and then he'll say: next time, have a written contract!

Reply to
PeterD

(this will piss off Don). Of course the difference between the owner and the contractor is that the contractor can use the lawyers fee as a tax deduction.

Reply to
Pat

So you're saying a contractor can provide a contract to build whatever. Intentionally or unintentionally, misstate the costs in terms of fair market value of services provided in that contract. Call those cost overruns, and win in court for those so called cost overruns... Doesn't sound like contract law to me.

Seems the buyer should be able to recover the same with service costs if less in the area. Not... Don't hold water. Dave

Reply to
Dave

no, you're missing the point the point is, the owner here is to the benefit of some structure built by the contractor that structure has a fair market replacement value

seems I remember the owner bragging about the value of his home how people who live in big houses don't put up with shit from generals like his

something about the community? he lives in?

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Reply to
Tony

The only people that I have ever personally known to go into a lawyers office and come out NOT paying him money up front were women filing for divorce. I've only been in there a few times and everytime I'm lucky if I have any ass pocket left at all .

Reply to
Don

Pissed off? I say, Hell yeah! Write off everything, they're too bogged down and stupid to catch everybody!

Reply to
Don

Your argument assumes that "fair market value for services" equals "fair market value of finished product", it does not.

Reply to
Art

the builder would get the standard rate for his service that's all I mean jughead

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Reply to
Tony

Since you don't have formal contract....I suggest you submit this to arbitration. What the house is worth is irrelevant. What the labor is worth may be relevant....What the materials cost you have a backup statement for....You have no agreement for change orders? His mistakes, his time to complete? Without a contract, not clear he can complain unless he can show you caused the delay. Sometimes it comes down to do you want to let him control the process of redress, or you? Do yo want him filing a mechanics lein and then a laywer jacks up the hourly fees or do you want to perhaps go to a low or no cost initial session with a lawyer to determine you best interest? Sometimes, a simple letter from a lawyer will survice.

Consider, what do you think he OUGHT to get paid, fairly?

Reply to
++

Is he from Waukegan?

Reply to
mrsgator88

A written bid with a signature of acceptance most likely will be considered a contract.

Reply to
mrsgator88

Anybody can sue anyone for anything. Doesn't mean its really going to happen.

Unless there's a provision in the contract, tough luck for him and he'll be laughed out of court.

See previous point.

This has no standing in court.

Most contracts have a time frame specified, so this could work against him in court. BTW, his written bid with your signature of acceptance is in fact a contract. Has he even presented you with a final itemized bill? Now, I'm interested to hear the other side of the story. But if the builder is just trying to bully his way to more money than he's due, his threats will go nowhere.

Reply to
mrsgator88

In many states a contractor can add additional charges on to his bill if he feels that he can justify the additional costs he's been force to endure. I have no idea what the law states in Wisconsin, and I'm willing to bet you don't either. First of all he CAN place a builders lien on you property and make it difficult for you to get a Certificate of Occupancy.

In my opinion, you have two courses of action, one is to agree to his overages and pay. The second is to retain a lawyer for a consultation.

ONLY a lawyer can advise you as whether he has a legitimate claim or not (he probably can justify some of the additional cost, but only a lawyer can get to the heart of his claim.) Don't be foolish, no one here is qualified to give you a good answer.

He's threatening lawsuit, and you would be very foolish to take this lightly. He's a professional (whether he's a good contractor in our opinion, or not), and he well knows the construction laws and his right to claim to any additional monies due him. Get a lawyer, you will save money in the long run.

Reply to
Dennis

"Dennis"> wrote

The third thing, which should be the first thing, is too speak with the contractor about the added costs and decide if they are justified. Seems there has been major miscommunication throughout the project and MORE miscommunication won't help matters.

Reply to
Don

Some years ago the contractor who remodeled my Boston row house into 3 condos, demanded $26,000 extra from me for additional work prior to C of O. I suggested we go to arbitration, he agreed. I appeared with complete paperwork, dated notes of conversations with him, copies of letters detailing his delays, dated sketches, and photos detailing every item added or subtracted. He appeared with his contract and threats of a mechanics lien. I won easily as I was prepared. He was not and went away nifonged. I suggest that you go for arbitration and be over prepared. EDS

Reply to
eds

I would hazard a guess that not having a written contract would put a rather large hole in the over-prepared preparations.

R
Reply to
RicodJour

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