Asking For More Money

 
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Old 04-07-2013, 07:54 PM   #41
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Re: Asking For More Money


All of it, from start to finish, as best as you can remember in the first post would have been great !
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Old 04-07-2013, 08:00 PM   #42
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Re: Asking For More Money


First, you used the word "estimate". An estimate is just that, it is not a firm price and means little more than "I think it will cost you about.....". Estimates are what is used when jobs are time and material. The customer pays the actual costs (plus agreed markup) not a fixed price.

Most of us use fixed price contracts. These are not estimates. For this to work the contract must be very clear what you are responsible for and how much and when you get paid.

From reading your OP, neither of these apply. You seem to have no real agreement.

It is quite unlikely you will work yourself out of this mess. Your best bet is to complete it and eat it if you are contractually required or else walk away. If the contract requires you to complete for a fixed amount and the HO provided some materials, it is your job to find the very cheapest materials that could have been used (like a $60 toilet) and make that adjustment.

It would be insane to fix price a contract then allow the HO to buy whatever they want for installation and charge that amount against the contract. It would also be insane to allow the HO to just backcharge for unsupported theft and casualty losses. You should have put your foot down a long time ago.

You screwed yourself already, looks as though you are asking to get screwed again. No, you won't get kissed.
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Old 04-07-2013, 08:28 PM   #43
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Re: Asking For More Money


Starting with the signing of the contract. The homeowners sign a contract stating contractor will provide all materials and labor for the scope of work attached to this agreement. I began the project out of my own pocket providing materials and labor for the foundation and masonry work. After the foundation was complete. I received my first draw you according to the contract and the amount of 20 K. Then Framing began. Framing started and basically took about three weeks to get everything up. The trusses came two weeks late. So the roof was not on until five weeks after the foundation. The homeowner stated that she wanted to get into her house as fast as possible as they always do. She then stockpiled her house with materials such as toilets bathtubs showers Sanks flooring etc. Which one was breach of contract from buying the material. Number two it made it almost impossible to work inside the house. After she had purchased them I told her that many of those items were not according to the budget. I told her that if she wanted those items I would have to reassess The estimate. For instance the budget included linoleum flooring, and she showed up with ceramic tile. Cruciate and stated that she was going to withhold some of the next draw to compensate for what she had purchased. I told her that we could sit down and talk about it. And maybe we could come up with something. I explained to her that there was many price increases due to this and Then she began stating that we broke things in her house. And we unplugged her freezer which damaged all of her food. And damage the freezer. And that we owed her for that also. I Astor for receipts. And she said that she did not have any. She would try to get them. It is been two months since that and I have not seen any receipts. Although I ask for them. She withheld approximately $10,000 from the draws stating that it was due to things that were broken in her house. And the material she bought. She then moved back into her house was unfinished with her family. Which made it extremely difficult workaround. Production started becoming very slow and we are now almost finished with the inside. What's Lee's siting and a partial roof to be done and then minor things to finish on the inside. I think approximately 8k to finish the job pretty easily
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Old 04-07-2013, 08:31 PM   #44
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Re: Asking For More Money


Why was there no deposit at the contract signing?
Who's fault was the late truss delivery? Certainly not the homeowners.
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Old 04-07-2013, 08:37 PM   #45
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Re: Asking For More Money


The bank wante to see progress before issuing the loan to the homeowner. Which the homeowner didn't have the start up funds. I told them as long as I was reimbursed I would fund the start up cost
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Old 04-07-2013, 08:42 PM   #46
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Re: Asking For More Money


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Originally Posted by elbud433 View Post
Starting with the signing of the contract. The homeowners sign a contract stating contractor will provide all materials and labor for the scope of work attached to this agreement. I began the project out of my own pocket providing materials and labor for the foundation and masonry work. After the foundation was complete. I received my first draw you according to the contract and the amount of 20 K. Then Framing began. Framing started and basically took about three weeks to get everything up. The trusses came two weeks late. So the roof was not on until five weeks after the foundation. The homeowner stated that she wanted to get into her house as fast as possible as they always do. She then stockpiled her house with materials such as toilets bathtubs showers Sanks flooring etc. Which one was breach of contract from buying the material. Number two it made it almost impossible to work inside the house. After she had purchased them I told her that many of those items were not according to the budget. I told her that if she wanted those items I would have to reassess The estimate. For instance the budget included linoleum flooring, and she showed up with ceramic tile. Cruciate and stated that she was going to withhold some of the next draw to compensate for what she had purchased. I told her that we could sit down and talk about it. And maybe we could come up with something. I explained to her that there was many price increases due to this and Then she began stating that we broke things in her house. And we unplugged her freezer which damaged all of her food. And damage the freezer. And that we owed her for that also. I Astor for receipts. And she said that she did not have any. She would try to get them. It is been two months since that and I have not seen any receipts. Although I ask for them. She withheld approximately $10,000 from the draws stating that it was due to things that were broken in her house. And the material she bought. She then moved back into her house was unfinished with her family. Which made it extremely difficult workaround. Production started becoming very slow and we are now almost finished with the inside. What's Lee's siting and a partial roof to be done and then minor things to finish on the inside. I think approximately 8k to finish the job pretty easily
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Old 04-07-2013, 08:44 PM   #47
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Re: Asking For More Money


Sorry for the mass. I am on a smart phone
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Old 04-07-2013, 09:01 PM   #48
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Re: Asking For More Money


You might have to lawyer up for this mess.
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Old 04-07-2013, 10:08 PM   #49
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Re: Asking For More Money


Sounds like the trusses stalled out the completion and bumped out her move in date, so you had to let her move in or she might have charged you a hotel fee. Now with all the stuff there I imagine it is hard to work. These things happen though everyone has dad to work for "That lady"
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Old 04-07-2013, 10:18 PM   #50
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Re: Asking For More Money


I'd sit down with a lawyer and explain EXACTLY what has happened so far with as many supporting documents and photos as possible. It'll cost you at least a few hundred.

With only your side of the story it sounds like they would have breached my contract in a few areas. You should have addressed them right up front but withholding money from the contract is a HUGE no-no. I'd talk to a lawyer before I talked to the HO.
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Old 04-07-2013, 10:27 PM   #51
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Re: Asking For More Money


Thank u
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Old 04-07-2013, 11:13 PM   #52
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Re: Asking For More Money


the quoting of linoleum and arrival of ceramic tile just made me shiver. good luck to you, and def just sit down with the lawyer. it'll pay for itself now and in your future too.

hope this goes well.
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Old 04-07-2013, 11:21 PM   #53
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Re: Asking For More Money


Based on your explanation post, I have to agree with others, that at this juncture, consult a lawyer at a minimum before discussing with the client...

BUT do not put this off, as it will just exacerbate the problem, so get it done tomorrow... Best of luck... 8^)
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Old 04-07-2013, 11:52 PM   #54
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Re: Asking For More Money


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I really was just trying to make her a happy homeowner.
She is probably just looking for a real man
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Old 04-08-2013, 07:09 AM   #55
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Re: Asking For More Money


You just learned some great things that will carry you forward in this business.

Iron clad contracts and timely change orders.

AND....being TOO NICE (permissive) is good for no one, not the client or you in the long run. You need to be confident and disciplined. Create an efficient plan/schedule (incl. payments), and then stick to it.....and require your client to do the same.
This is the "foundation" of what we do. A clearly defined process and a disciplined approach to achieving the shared goals of quality and value are the fundamental starting point for everything.

Might cost you a bit, but the lessons are well worth it.....and ones that we all have had to pay for.

Document everyting, call your lawyer, GOOD LUCK.
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Old 04-08-2013, 10:02 AM   #56
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Re: Asking For More Money


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You just learned some great things that will carry you forward in this business.

Iron clad contracts and timely change orders.

AND....being TOO NICE (permissive) is good for no one, not the client or you in the long run. You need to be confident and disciplined. Create an efficient plan/schedule (incl. payments), and then stick to it.....and require your client to do the same.
This is the "foundation" of what we do. A clearly defined process and a disciplined approach to achieving the shared goals of quality and value are the fundamental starting point for everything.

Might cost you a bit, but the lessons are well worth it.....and ones that we all have had to pay for.

Document everyting, call your lawyer, GOOD LUCK.
One of the best posts ever here on CT.... WELL said!

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Old 04-08-2013, 10:27 AM   #57
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Re: Asking For More Money


A kitchen contractor that I sub with will have maybe 6 payouts for the job unlike some others that have only 2 or 3. He's never chasing money. If they don't pay that portion's invoice then one shows up. He explains that the subs have schedules and their job ( homeowners) is scheduled for only this particular moment.

Also, any delays in material delivery should be covered in your contract and extend the time frame.
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Old 04-08-2013, 07:35 PM   #58
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Re: Asking For More Money


Thank you for your advice everyone. Update., I spoke with the homeowner today. I explained her that we are running short of money and need approximately 10% more. I'm surprised how She reacted to it. Calmly, She said that the bank would not give her any more money. Which I did confirm that with the bank. She said that she did not have any money in your savings. She did mention me doing extra work for her for free. Which she would buy the materials for to help absorb the cost . i did catch her lying to me about a few things. The bank gave her a draw schedule. That she never introduced to me. I am just finding this out. I told her I would brainstorm tonight. And she should brainstorm also so that we can come up with a meet in the middle decision. That's where I am left right now
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Old 04-08-2013, 07:46 PM   #59
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Re: Asking For More Money


brainstorm with a lawyer.
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Old 04-08-2013, 07:47 PM   #60
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Re: Asking For More Money


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Thank you for your advice everyone. Update., I spoke with the homeowner today. I explained her that we are running short of money and need approximately 10% more. I'm surprised how She reacted to it. Calmly, She said that the bank would not give her any more money. Which I did confirm that with the bank. She said that she did not have any money in your savings. She did mention me doing extra work for her for free. Which she would buy the materials for to help absorb the cost . i did catch her lying to me about a few things. The bank gave her a draw schedule. That she never introduced to me. I am just finding this out. I told her I would brainstorm tonight. And she should brainstorm also so that we can come up with a meet in the middle decision. That's where I am left right now



everthing al wron here tak yor beating on ths one finish somhow the thingained here is that meny lesson to be lerned if you analiz mistkae corrcly and no repeat again

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