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Discussion Starter #1
After making a quote for a home, including a cement driveway, the cost of cement has gone up. Can the contractor charge the owner the extra cost of the cement or does he eat the extra cost?
 

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Not unless you have an escalation clause in your contract.Usually these are tied to comodity index for a particular material.Say price per ton of steel scrap or 1000mbf of s.p.f lumber.
 

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Was the original price on a signed contract or an unsigned quote? Some quotes expire after 30 days. The reason for this is to prevent contractors form being expected to hold pricing on quotes they made a long time ago. I recently was approached about a project I bid over a year ago. I kid you not, the person asked me if my quote would be the same price.

Tim
 

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I do not have an escelation clause in my contract but I have a 30 day right of refusal. If the price goes up on my materials, as they do once or twice a year, then I raise my prices accordingly and if someone with an outdated proposal wants the work done I mjay or may not eat the increase.

The lack of an escelation clause in my proposal has only bit me once, at that was a few years ago when plywood went up about $5 a sheet almost overnight. We did a job where we installed about 60 sheets. It wasn't the end of the world but it did bite into profit.

To be honest I eat alot of escalations because they seldom ammount to much for me in roofing siding and window biz.
 

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Discussion Starter #5
I'm having my home built. The contractor started in March. There was no escelation clause in the contract. The house is at the finishing stages now. Only mud and tape, siding and pouring the driveway and porch remain. There was no expiration on the contract either. It's only amounting to $150 dollars but still...


Thanks
 

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Hmmm.... Did you change anything about the driveway?

Tim
 

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Discussion Starter #7
TimWieneke said:
Hmmm.... Did you change anything about the driveway?

Tim
I haven't changed or upgraded one thing on this house. I gave them the blue prints and they gave me a quote.
 

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If,you have no complaints about work i would pay it but tell contractor he should have escalation clause.Given the volitility of cement prices suprising he hasn't added one to his contracts.btw due the same issues with framing lumber and panels we only guarantee quotes for 30 days.
 

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I'd eat the 150 bucks too. I bid is your word. Changing it (unless there were terms to do so) means your word is crap. I can't believe the builder would have the stones to bill 150 bucks extra when he's doing the whole house for Pete's sake. I wouldn't want something as silly as 150 bucks cause the customer to think less of me.
 

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If $150 is going to hurt you, something is wrong.
 

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Discussion Starter #12
I'm not a general contractor. I'm a painter (custom art work in homes and offices) and I don't charge extra when my supply cost goes up. I don't have an escalation clause either because I buy all of my materials after the contract is signed. I realize it's different for a general contractor though. Still, the home is almost 3000 sq ft and I'm a little upset he's sweating me over $150. It's not the amount it's the point he's doing it in the first place that has me upset.

If I posted this in the wrong forum sorry.
 

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As a concrete supplier, we incurred 5 different cement increases last year. My quotes are good based on the award of the project within 30 days. I held my pricing to customers we have purchase orders from, loyal customers we have long-term relationships with, and long term projects where we were the supplier of choice. I can tell you we ate one helluva lot more than a measly 150 bucks.
 

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red_cedar said:
Its possible the contractor has all ready given to the point of where he says no more giving. This post is one side of the story.
Just another perpective.
Boy is that a good thought!!!!!!!!!!!!!!!!!!!!!!
 
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