Extra Work Order Price Conflict

Ed the Roofer

You are in progress on the job and something not included comes up that you write up a change order for.

To continue to proceed with the job, this additional work must be done.

The HO says, that too much for that, I can get it done for XX less or the other guys who bid this job already told me this potential extra work would cost only this much.

What do you do and how do you most tactfully handle this criticism and conflict?

Danahy

"I hope the other guy didn't miss anything - That's a risk that you'll have to figure out for yourself"

Ed the Roofer

Okay, a little more clarification as an example.

I charge $ 2.00 per sq ft for 4-ply cdx R & R. Now, if we start the job and during the initial inspection, the old wood felt solid, but now that the 2-3 layer roof is torn off, it all really is very delaminated and coming up with the last layer of shingles.

The price is in my contract, but they now say its too high. Would you guys continue to proceed with the replacement of the cdx since the price is part of your contract or would you just tell them that you wont change the wood since they object? Or, would you depart the job and let the HO get the cheaper guy to do the wood?

Or, do you fill out the change order/update to soecifications and give them a copy notifying them of the necessity for it to be a properly approved job and hope you get paid at the end of the job?

That is, they won't sign for it, but you may or may not decide to proceed.

Ed

Danahy

Doing anything the wrong way is not an option for your name's sake. You getting paid is fair by all stretches for the changes. In a firm / confident / smart way inform the HO that you are going to need to issue a stop work order until the matter is settled. If they go for the cheaper guy, than let it be someone elses problem to deal with it. If he's reasonable at all, he sort it out. Either way you'll do it the right way cause it's the right thing to do.

p.s. - remember that this is coming from my point of view of being a painter.

Mike Finley

Ed, you've got some interesting customers.

Easiest way out of all this is to include a clause in your contract that says you only warranty your work. Any work done by the customer himself, his brother in law another contractor he hires, if the work is connected to yours in some way, your warranty is null and void. Also include a clause about how any delays caused by homeowner, his brother in law or anybody he hires are billiable for time wasted for x amount of dollars per hour.

Now what would you like to do mr customer?

Charles Bagley

Will the home owner pay you for your work already completed if you walk? It is not a good time to bicker when your roof is tore off so you may have the advantage if he thinks you will walk and let the other guy be responsible for finishing the job. It is not good practice to walk away on a job, but sounds like he is not abiding by the contract.

CB

Grumpy

Mr. Customer, I understand that you might think you can get the work cheaper, and I am most positive that you can! I am also most positive that you had cheaper bids but you still decided to hire us because you wanted to buy a balance of value and quality at pricing that is fair. I am offering you the same FAIR pricing with our change order as well.

If you really do not want us to do this work, then I need you to sign this waiver stating we are not responsible for any work that they do, PLUS not responsible for any damaged that occur to your property between the time we leave and the time we start again. Furthermore as you will see in our standard warranty if they change any of our work this will void our warranty and if we have to correct anything they do to meet our standards, we will be right back here with another change order.

Should I go buy the extra materials, or send my guys to the next job?

Stone Mountain

Here in Ontario the Consumer Protection Act was changed recently.
IF I do extra work on a job, I have to BY LAW, get a completely new contract showing the revised scope of the job and the revised price, OR, I have to get a detailed change order, showing the original price of the job, the credit for othe original work that won't or can't be done, the extra cost of the new work, the revised toal, and of course all the taxes. Then the customer has to sign it.
TECHNICALLY, according to our law, if this revised contract or change order is signed at his houseand not at my office, he has 10 days to cancel the work, and receive a refund of any deposit.
In fact, the way the law reads, he has 10 days to cancel the job, AND GET A REFUND OF ANY DEPOSIT, if the contract was signed at his house, even if you've ALREADY started.

Additionally, if you do not get a revised contract with the changes in the amounts SPECIFICALLY shown, and if the homeowner doesn't sign it, even if he verbally agees, you could do the work and then have him refuse to pay; at which point you can do nothing, according to the way this law is written.

!!!!!!!

In practice, the consumer doesn't really know about all this, and most people are basically fairly moral about it, but if you get an armchair lawyer, you could be f***d. Certain aspects of this law have yet to be challenged in court, but you have to step lightly.

Steve

__________________
Residential Deck Specialist: Vist our Website
www.fenceanddeck.ca

Ed the Roofer

This was all stuff that formerly had come up in jobs over the years at one time or another. Regarding the plywood, that usually only became an issue when 100 % needed replacement.

Previously, I only listed the square foot price for R & R. Nowadays, if I feel there is a potential for more significant plywood replacement, I also include the actual dollar cost in the proposal to avoid the debate. I found out the hard way, that customers do not equate per square foot very well when it come time to replace 1,600 to 2,000 sq ft total.

I just wanted to see if other contractors had ever dealt with these issues and if so how did they deal withn them at the time and what contractual safeguards did they put in place at the time.

Also, in addition to having these clauses on the primary contract, I include them on all update to specifications now as well.

The loss of my warranty for workmanship would become a non-issue in such an instance, as there is more at stake than just the warranty.

Ed