Asking For More Money

 
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Old 04-07-2013, 06:04 PM   #21
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Re: Asking For More Money


Well then when they bought the materials instead of you that is constituted as a breach of contract. Legally they still owe you what they signed for unless you have a change order that says otherwise.
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Old 04-07-2013, 06:15 PM   #22
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Re: Asking For More Money


" I've been told paying my subs by the hour is probably what did it."

You've been told? Aren't you the GC?



The things you listed that caused issues don't seem like they add up to $8K...

You should know from start to finish your costs for a job... This is a prme example of why...

That said, make a list of the things you say added cost, show a breakdown of what the costs were supposed to be for the subs, and show how what was actually paid exceeded the budget. You (and your subs, BTW) need to provide a reason for the overage.

The weak link here is that you apparently didn't communicate these overage, them moving back in causing delays and increased costs, etc...

This is why documentation is extremely important.

Your one saving grace here from a negotiation perspective is that you can show what you budgeted for in preparation of the project versus what was actually paid.

You said your contract reads.... " if costs are too low for unseen factors or events than both parties will make a good faith effort to modify the change. "

Your "good faith effort" at this point would be to break even on the costs... their "good faith effort" would be to pay only the $8K in overages and no load on top of that...

If they object, your response should be "I'm not making ANY money on this $8K, but am just looking for a good faith effort from you to cover the costs as we agreed. We are both giving up something here, which I think we can all agree is the fairest outcome for everyone involved".

That is the best outcome I can see in this situation, but I can already tell by reading between the lines, there is much more to this story... But, the advise is based on what you provided thus far....


Best of luck... 8^)
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Old 04-07-2013, 06:17 PM   #23
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Re: Asking For More Money


Thank u
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Old 04-07-2013, 06:21 PM   #24
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Re: Asking For More Money


Just saw the post about them buying materials... while you should have stopped that on the first one, this also give's you some leverage, because part of your pricing in materials and labor INCLUDES profit, which usually allows for a certain percentage of overages...

Them TAKING that profit INCREASES your costs... Tell them while you can appreciate them wanting to save money, they can't expect you to both give up profit AND pay for the overages on their project...

See, told you there was more to this story...
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Old 04-07-2013, 06:24 PM   #25
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Re: Asking For More Money


Thanks. Appreciate it
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Old 04-07-2013, 06:25 PM   #26
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Re: Asking For More Money


I already said that
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Old 04-07-2013, 06:28 PM   #27
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Re: Asking For More Money


If this was a fixed price contract, why were you paying your subs by the hour?
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Old 04-07-2013, 06:32 PM   #28
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Re: Asking For More Money


On behalf of the good contractor you probably beat out for this job because you were less on your bid - You are getting what you deserve.
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Old 04-07-2013, 06:32 PM   #29
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Re: Asking For More Money


My partner was the the Forman who was to make sure they completed task on time. He said it could make it more profitable for us. However that wasn't the case
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Old 04-07-2013, 06:35 PM   #30
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Re: Asking For More Money


Paying subs by the hour is silly on a fixed price contract.
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Old 04-07-2013, 06:58 PM   #31
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Quote:
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I already said that
Well, you said something similar... I just made it make sense...
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Old 04-07-2013, 07:15 PM   #32
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Re: Asking For More Money


You don't walk off a job because it's gone 10% over your "estimate". I have no idea why you're working off a contract with no straightforward change order and unseen condition clauses but a contract price isn't an "estimate". If you come up 10% on a $80k job then you probably just didn't make much money. That's not the same as losing money. I don't see how you can "run out" of money for the job. We're you planning on less than 10% income for yourself on this?

Aside from, apparently, having a crappy contract you should have addressed each of these cost increases as they occurred. Now you have to go, hat in hand, to ask the customer to pay you for expenses that you've already incurred. The material thing is bogus and a breach of contract. Can you tell us exactly how much the customer bought and how much they withheld? At the very least I would expect to recoup the difference between my cost+markup and what they deducted. It may be too late to address the other issues.
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Old 04-07-2013, 07:24 PM   #33
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Re: Asking For More Money


I told them I had a budget set aside for approximately 10k for toilets tubs sinks. Vanieties. And in stock cabinets. Linoleum flooring etc. which included installation cost. They spet about 10k. And withheld that amount from me
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Old 04-07-2013, 07:27 PM   #34
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Re: Asking For More Money


She continually says we break things around the house and has withheld money for that. As well as accused us of stealing. I have worked with my team on several jobs and never had this problem.
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Old 04-07-2013, 07:31 PM   #35
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Re: Asking For More Money


Obviously this contract was very nonspecific. As for all of the other stuff, sounds like the homeowner may actually want you to leave. You are over budget, past completion date, under water, and the job site is a mess. Even with a great meeting, I still don't see this ending well for you or the homeowner.
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Old 04-07-2013, 07:37 PM   #36
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Re: Asking For More Money


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She continually says we break things around the house and has withheld money for that. As well as accused us of stealing. I have worked with my team on several jobs and never had this problem.
So you let her withhold money for things she says you broke without any proof and you think that you are now going to get $8K out of her?
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Old 04-07-2013, 07:42 PM   #37
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Re: Asking For More Money


This is all he said/she said... the whole story is coming out in dribs and drabs... without the whole story, which is still only he said, it's hard to really give you any suggestions that may matter...

This is why the contract matters...
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Old 04-07-2013, 07:42 PM   #38
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Re: Asking For More Money


I really was just trying to make her a happy homeowner.
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Old 04-07-2013, 07:44 PM   #39
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Re: Asking For More Money


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I really was just trying to make her a happy homeowner.
I think we get that... but we have ALL had jobs go side-ways, but without all the details instead of dribs and drabs, you are getting responses to the dribs and drabs instead of how to handle the situation as a whole...

There may yet be a way to minimize your damage on this...
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Old 04-07-2013, 07:51 PM   #40
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Re: Asking For More Money


It's really hard to type the entirety of the situation. Which parts Of the situation would you like me to describe for you?

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