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Asking For More Money

 
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Old 04-24-2013, 05:52 AM   #241
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Re: Asking For More Money


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Originally Posted by elbud433 View Post
I'm still here. Waiting to hear back from the homeowners bank. Their banker contacted me and left a message, asking me to call him back which I did however he was out of the office yesterday
So I see you lurking... what happened with the bank? Any progress with the HO? Have you filed a lien yet and let the bank know that's what you need to do because the HO has not paid for their Change Order's, etc. and now claim there is no money or access to money/credit?
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Old 04-24-2013, 10:48 AM   #242
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Re: Asking For More Money


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Originally Posted by MTN REMODEL LLC View Post
...or you miss bid/contracted the job.... everyone else can't always make up for your own mistakes
Couldn't agree more

By furnishing the contract, YOU are responsible for everything laid out in said contract. I think this is just an example of inexperienced nice guy vs one of those homeowners that could go either way. If you lay out EVERY single dollar that needs to be paid out in a precise schedule (with statement in contract that the schedule may change due to weather, suppliers, subs, etc. ) with a "stop work" article in your contract, as well as a change orders article that states that all change orders are to be signed by both parties and paid-for before execution so they don't halt the progress of the original scope of work, this post wont happen again.

Furthermore you should never let anyone breech your contract, period. This allows them to feel that they can walk all over you and ultimately makes the judge feel like the contract you wrote is worthless to both parties. Most homeowners will hold you to the contract, you should hold them to it as well. I'm not saying you can't have change orders, or even change something if they request it because maybe they realized they don't have the budget they were expecting.... but everything needs to benefit both parties and needs to be in writing.

Most customers have no idea about the different things to expect with a remodel or with building a house and it is your job to show them that you will take care of them and keep their best interests in mind. Its important to be willing to work with them in certain situations, but it is also important to have signatures for ANY changes to the well detailed scope of work.

They also need to know that this is your business and you have bills to pay and a family to support just as they do!

A well written contract will ward off anyone with malicious intent, and they are out there. You need to protect your business.

You know this situation better than anyone, but if you can work it out with the homeowner you will be better off. I had a very wealthy man tell me that you need to take a disaster and turn it into profit. He didn't mean immediate profit, but if you can regain control of this project and create a happy customer, she will praise you and tell everyone how "We ran into some ruff spots, but he made up for it 10 fold and I couldn't be happier with my home..."

I feel that honesty, and I mean deep rooted honesty, would be a good thing in this situation. Find a mediator and have a sit down. Tell her you feel like you've failed her from the beginning by not having a specific enough contract and by not having the things she really wanted in the contract (the desire for tile for example should have come up before the contract). Tell her that this is not how you want your business to run and ask her how things could have gone different in her eyes. Take notes. Make her know that you value her opinion, and also let her know that this can help you to avoid these sort of problems in the future. Conflict resolution can only be considered successful for your business if you are able to get the homeowner to praise your work in the end (or you don't go bankrupt from a lawsuit) and it is a lot easier than it appears.... sometimes it just takes a little time apart for them to realize that your quality of work is worth the little bumps along the way.

Most of all make sure that she knows you are making the effort to make things right. Lay out a typed page with talking points and email it to her. Tell her to add things she wants to discuss to the list.

These are all just ideas off the top of my head, but it would pay off in the end if you aren't being bad mouthed all over town.
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Old 04-24-2013, 07:44 PM   #243
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Re: Asking For More Money


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Originally Posted by MCCarpentry View Post
Couldn't agree more

By furnishing the contract, YOU are responsible for everything laid out in said contract. I think this is just an example of inexperienced nice guy vs one of those homeowners that could go either way. If you lay out EVERY single dollar that needs to be paid out in a precise schedule (with statement in contract that the schedule may change due to weather, suppliers, subs, etc. ) with a "stop work" article in your contract, as well as a change orders article that states that all change orders are to be signed by both parties and paid-for before execution so they don't halt the progress of the original scope of work, this post wont happen again.

Furthermore you should never let anyone breech your contract, period. This allows them to feel that they can walk all over you and ultimately makes the judge feel like the contract you wrote is worthless to both parties. Most homeowners will hold you to the contract, you should hold them to it as well. I'm not saying you can't have change orders, or even change something if they request it because maybe they realized they don't have the budget they were expecting.... but everything needs to benefit both parties and needs to be in writing.

Most customers have no idea about the different things to expect with a remodel or with building a house and it is your job to show them that you will take care of them and keep their best interests in mind. Its important to be willing to work with them in certain situations, but it is also important to have signatures for ANY changes to the well detailed scope of work.

They also need to know that this is your business and you have bills to pay and a family to support just as they do!

A well written contract will ward off anyone with malicious intent, and they are out there. You need to protect your business.

You know this situation better than anyone, but if you can work it out with the homeowner you will be better off. I had a very wealthy man tell me that you need to take a disaster and turn it into profit. He didn't mean immediate profit, but if you can regain control of this project and create a happy customer, she will praise you and tell everyone how "We ran into some ruff spots, but he made up for it 10 fold and I couldn't be happier with my home..."

I feel that honesty, and I mean deep rooted honesty, would be a good thing in this situation. Find a mediator and have a sit down. Tell her you feel like you've failed her from the beginning by not having a specific enough contract and by not having the things she really wanted in the contract (the desire for tile for example should have come up before the contract). Tell her that this is not how you want your business to run and ask her how things could have gone different in her eyes. Take notes. Make her know that you value her opinion, and also let her know that this can help you to avoid these sort of problems in the future. Conflict resolution can only be considered successful for your business if you are able to get the homeowner to praise your work in the end (or you don't go bankrupt from a lawsuit) and it is a lot easier than it appears.... sometimes it just takes a little time apart for them to realize that your quality of work is worth the little bumps along the way.

Most of all make sure that she knows you are making the effort to make things right. Lay out a typed page with talking points and email it to her. Tell her to add things she wants to discuss to the list.

These are all just ideas off the top of my head, but it would pay off in the end if you aren't being bad mouthed all over town.
OP..... Friend... Print this above.... read it and study it.... and 1) you won't get yourself in your position again, and 2) you may get yourself out of this present circumstance.

You sound like an honest guy that got bit by maybe some lack of the "business side" experience/knowledge of contracting.

Wish you best luck resolving the present issue and in the future... but honest, understand the above and it will serve you well. IMO (think that means "in my opinion"... I'm an old "F"... I do know what that stands for)

Peter
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Old 04-27-2013, 09:30 PM   #244
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Re: Asking For More Money


What an uneventful ending to this story. Like a tv show that got canceled 3/4 of the way through.
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Old 04-28-2013, 11:50 AM   #245
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Re: Asking For More Money


Come on!!! UPDATE!!!!
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Old 05-03-2013, 02:10 AM   #246
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Re: Asking For More Money


You've got to be kidding, I just read through this thread thoroughly and completely, and there is no end? I can't imagine dealing with a train wreck such as this, and I think that it was a wake up call to varying degrees to everyone that read this thread to tighten up the business side.

I hope this finished well for the OP, buy a lottery ticket if you get out of this one alive
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Old 05-03-2013, 12:41 PM   #247
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Re: Asking For More Money


Man.... this STILL doesn't have a resolution yet? from a page one participant to a full 12 page lurker, I'm getting tired of reading.
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Old 05-03-2013, 12:46 PM   #248
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Re: Asking For More Money


This is like watching that TV show Lost.
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Old 05-03-2013, 12:56 PM   #249
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Re: Asking For More Money


We r still going back and forth. The bank said they would any change orders that are signed. But I think she has chosen to contact her lawyer. And my lawyer and her lawyer are trying to come up with a solution.
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Old 05-03-2013, 02:28 PM   #250
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Re: Asking For More Money


Bend over and grab your knees.
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Old 05-03-2013, 06:36 PM   #251
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Re: Asking For More Money


I think of this thread at least once a day. I don't know what to make of it. If you read it all the way through and see where the story ended up, it doesn't really line up with the initial comment from the op.

The job started as an estimate and then it turns into the customer is breaching the contract. Needs to ask her for more money turned into she isn't paying. A lot not adding up here.

I've been asking what the scope of this project is for a while now but it never gets any where. We know there is a foundation that was poured, a bathroom, and the customer had to move out. What is on the roof now? Can we see a picture?

I have been talking to my lawyer about suing elbud to force him to tell the full story.
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Old 05-03-2013, 06:48 PM   #252
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Re: Asking For More Money


Class action suit- sign me up!
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Old 05-03-2013, 07:37 PM   #253
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Re: Asking For More Money


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Class action suit- sign me up!
Me too. I want my 20 minutes back!!!
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Old 05-03-2013, 09:02 PM   #254
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Re: Asking For More Money


Were at the long drawn out part, lawyers are involved.
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Old 05-03-2013, 09:27 PM   #255
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Re: Asking For More Money


Can anyone direct me to a link for a comprehensive Remodeling contract? I really want to tighten mine up.
I searched here, but I somehow can't find a really good one. Thanks in advance.
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Old 05-03-2013, 11:16 PM   #256
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Re: Asking For More Money


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Can anyone direct me to a link for a comprehensive Remodeling contract? I really want to tighten mine up.
I searched here, but I somehow can't find a really good one. Thanks in advance.
I am using this one, it works for me...
http://craftsman-book.com/products/i...5745d6ca260d85
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Old 05-04-2013, 11:45 AM   #257
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Re: Asking For More Money


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I am using this one, it works for me...
http://craftsman-book.com/products/i...5745d6ca260d85
I clicked on the link but can't find anything.
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Old 05-04-2013, 02:15 PM   #258
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Re: Asking For More Money


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Can anyone direct me to a link for a comprehensive Remodeling contract? I really want to tighten mine up.
I searched here, but I somehow can't find a really good one. Thanks in advance.
www.abcaforms.com
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Old 05-06-2013, 12:45 AM   #259
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Re: Asking For More Money


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I clicked on the link but can't find anything.
On that link, look to the column to the left (under the search box in the product directory), and choose "contract writer". From there, choose your state and follow the prompts accordingly.
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Old 05-06-2013, 05:42 PM   #260
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Re: Asking For More Money


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On that link, look to the column to the left (under the search box in the product directory), and choose "contract writer". From there, choose your state and follow the prompts accordingly.
Thank you ThunderMntn, I was able to find it.

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