Asking For More Money

 
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Old 04-07-2013, 03:13 PM   #1
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Asking For More Money


my project started out as an estimate.. the homeowners are very difficult people. and i am running out of money to continue this project (which the home owners kinda sort of can tell) how do i ask them for more money. about 10% more money than was estimated .. ? suggestions?
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Old 04-07-2013, 03:17 PM   #2
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Re: Asking For More Money


What does your contract say?

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Old 04-07-2013, 03:23 PM   #3
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Re: Asking For More Money


it says that if costs are too low for unseen factors or events than both parties will make a good faith effort to modify the change.
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Old 04-07-2013, 03:56 PM   #4
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Re: Asking For More Money


It should have boiler plate that says they WILL pay for any unforseen problems. Good faith could be they wish to, or would like to pay, but can't. Lots of wiggle room.

You also should have a section that explains the common problems your experience tells you to expect. If you have run into things that weren't in the scope of work, they should pay to fix it. You may give them a break, but if it is a big hit, don't do it for free.

Depending on the size, 10 percent shouldn't hurt too bad though if you do end up eating it. Your markups and overhead should help ease the pain. Hopefully you put in an oops factor as well.
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Old 04-07-2013, 03:58 PM   #5
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Re: Asking For More Money


It adds up to about 8000 $. So I won't r able to eat that. And don't want to walk off of a job either. So any advice would be great. Appreciate the advice thus far
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Old 04-07-2013, 04:01 PM   #6
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Re: Asking For More Money


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it says that if costs are too low for unseen factors or events than both parties will make a good faith effort to modify the change.
There is absolutely nothing there for you to stand on. It gives them all the leverage. All they need to say is you should have "forseen" the problems or "factors" you're running into because they hired you to be the professional.

I'd say eat it and chalk it up to a lesson learned.

Sorry....
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Old 04-07-2013, 04:06 PM   #7
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Re: Asking For More Money


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It adds up to about 8000 $


Are you saying you've allowed the job to progress and you're now BEHIND by that much? If so, all I can say is OH MY.

Get your receipts together and have a come to Jesus meeting with them. Tell them it will wreck you and your family financially if they don't divy up some more $$$. Be TOTALLY honest and forthright with them. Don't get angry or defensive. Just explain how and where the job went sideways and ask for their help.

Just understand, with that weak contract language, you don't have much to stand on at this point.

Again, sorry....
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Old 04-07-2013, 04:07 PM   #8
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Re: Asking For More Money


I appreciate the advice. Thank u
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Old 04-07-2013, 04:13 PM   #9
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Re: Asking For More Money


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I appreciate the advice. Thank u
I wish saying "you're welcome" felt a little better.

I also wish I could give you some better advice. But with the info that's been provided, it's about all I can do.
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Old 04-07-2013, 04:22 PM   #10
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Re: Asking For More Money


There are many factors that led up to this. I've been told paying my subs by the hour is probably what did it. There was also some things like joists and rotting that I couldn't see Old black pipe that was not reusable. Then the homeowners moved back in. That's when this turned for the worst. It was too difficult to work around them. And we are way over our due date and budget
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Old 04-07-2013, 04:39 PM   #11
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Re: Asking For More Money


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Originally Posted by CompleteW&D View Post


Are you saying you've allowed the job to progress and you're now BEHIND by that much? If so, all I can say is OH MY.

Get your receipts together and have a come to Jesus meeting with them. Tell them it will wreck you and your family financially if they don't divy up some more $$$. Be TOTALLY honest and forthright with them. Don't get angry or defensive. Just explain how and where the job went sideways and ask for their help.

Just understand, with that weak contract language, you don't have much to stand on at this point.

Again, sorry....
This is what we call going back to the well, and it's just about the only option you have...even though it isn't a great one it sounds like you really screwed yourself.
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Old 04-07-2013, 05:13 PM   #12
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Re: Asking For More Money


I don't want to come off as being insensitive here, but it seems your looking to blame everyone but yourself. We have all been in a similar situation, although usually a smaller job when we were first starting out. It seems that you got way in over your head. Your only recourse is to hope that the homeowners bail you out. You are at their mercy. The part where you hinted at walking off the job really strikes a raw nerve with me though. Imagine what that would do to your already damaged reputation.
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Old 04-07-2013, 05:16 PM   #13
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Re: Asking For More Money


If they choose not to bail me out. Then what should i do ?
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Old 04-07-2013, 05:24 PM   #14
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Re: Asking For More Money


The homeowner purchased a lot of material for the job. Behind my back. Tubs toilets flooring. Then told me it cost her x amount. And with held several thousand dollars from me without receipts. It's just so happens that the amount she took for purchasing those items is the amount I need
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Old 04-07-2013, 05:26 PM   #15
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Re: Asking For More Money


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If they choose not to bail me out. Then what should i do ?
You should hunker down and complete what was agreed upon. Do the work yourself, work long hours, get other work that pays more to take the sting out. I have been in business for 18 years. I have lost money on several jobs. I have always kept up my end of the bargain no matter what. Surely you saw this coming and should have been honest with them long ago. I know this isn't what you want to hear, but it will make you a better businessman in the long run.

Have the meeting, be honest with them. Whatever happens, express that you are dedicated to finishing the project.
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Old 04-07-2013, 05:27 PM   #16
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Re: Asking For More Money


I agree. Thank u
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Old 04-07-2013, 05:30 PM   #17
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Re: Asking For More Money


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The homeowner purchased a lot of material for the job. Behind my back. Tubs toilets flooring. Then told me it cost her x amount. And with held several thousand dollars from me without receipts. It's just so happens that the amount she took for purchasing those items is the amount I need
Who's fault is that? As soon as they failed to provide a receipt, you should have made a hard stand. Not to mention, someone still needed to purchase the material. You may have gotten it for less, but it would not have been free! Once again, your blaming others for your fate here. Get all the numbers together, yours and theirs. Bring the original agreement and have a sit down. You are at their mercy.
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Old 04-07-2013, 05:36 PM   #18
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Re: Asking For More Money


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The homeowner purchased a lot of material for the job. Behind my back. Tubs toilets flooring. Then told me it cost her x amount. And with held several thousand dollars from me without receipts. It's just so happens that the amount she took for purchasing those items is the amount I need
Whoa there...I wouldn't let that fly either...get your paperwork together and have a serious meeting. Sounds like you have a real schmozzle on your hands.
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Old 04-07-2013, 05:47 PM   #19
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Re: Asking For More Money


Yep, get your numbers together and ask them for the receipts. Did they buy the material when it was stated in the contract that you would be supplying it? That is profit that they took from you Anything that varies from your contract by them can be construed breach of contract.
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Old 04-07-2013, 05:48 PM   #20
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Re: Asking For More Money


Specifically states. That I will be responsible for material and labor.

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