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Discussion Starter · #1 ·
I would like to know how to handle this scenario.


Say you are in a remodel where theres a partial tear out and after the demo you find something that was not predicted in your bid... for example a previous bad remodel 30 years back left coverd up or horrid mold issue, or buried gas lines where they shouldn't be (could be just about anything that isn't a cheap,fast&SLeasy way to just fix it)

Does this then require a new adendum to the contract...

and should there be a clause written in the original contract for these unforseen challanges ?

In remodeling I know there is so many unforseen goodies hidden in the bowels of alot of homes.:w00t:

I just would like to know how the best and when is the best time to deal with these blessings
 

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Curmudgeon
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11,706 Posts
One of the most basic parts of any
remodeling contract must be
the "unforeseen conditions" clause.
As soon as they are uncovered,
begin to discuss solutions and
change orders.
You are to be expected however
to invest some thought into what
might be there before you begin
and to prepare the HO for the sort
of issues that might arise.
I don't want my customers to feel
as though I'm using these things
as an excuse to randomly raise the
price of the contract.
 

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Registered
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2,703 Posts
One of the most basic parts of any
remodeling contract must be
the "unforeseen conditions" clause.
As soon as they are uncovered,
begin to discuss solutions and
change orders.
You are to be expected however
to invest some thought into what
might be there before you begin
and to prepare the HO for the sort
of issues that might arise.
I don't want my customers to feel
as though I'm using these things
as an excuse to randomly raise the
price of the contract.

Absolutely right :thumbsup:

If you feel that there may be issues, prepare the customer (aka - drive it into their brain very clearly, and repeatedly). Also, include it in your proposal and your contract wording for that particular job. Add it into the specific wording of the job, and, as stated, always have it as a clause in all your contracts.

Example:

CONCEALED/ HIDDEN ISSUES: Standard Exclusions; Additional charges above and beyond the original estimate may be incurred in the event of discovered structural or design issues. Such issues may be the result of previous poor workmanship, faulty installation, faulty materials, failed framing members, any matter requiring changes to a work surface, etc. All costs associated with correcting existing out-of-plum, out of level, out-of-aligned conditions, or improper/poor work, in an existing structure would result in additional charges. This policy also covers any existing plumbing or electrical issues that are not listed for replacement, alteration, upgrade, or repair in the original scope-of-work. This would include the re-routing of vents, pipes, ducts, structural members, wiring, conduits, or steel mesh that may be discovered in the removal of walls or the cutting of openings in walls or ceilings. In such an event, work will cease and additional charges will be determined in order to perform the required work.
XXXX Construction Services, Inc - would not be held liable for any delays caused by work procedure changes due to matters listed in this exclusion addendum. In the event of one of the afore mentioned delays, we reserve the right to relocate to another work project until the stated matter(s) are rectified, determined, or an "aggremeement to proceed", is made.

EXISTING WATER DAMAGE OR PEST DAMAGE: Standard Exclusions; Hidden and unforeseen damage may be found during construction, installation or repair phases of a contracted job. Additional charges above and beyond the original estimate may be incurred in the event of discovered water damage and/or pest damage. This would include the correcting/testing/remediation of mold/fungus/mildew and organic pathogens, unless such is caused by the sole and active negligence of the contractor and is a direct result of construction defect that caused sudden and significant water infiltration into a part of the structure. This involves all interior/exterior parts, and materials directly connected to and affected by said damage. In such an event, work will cease. Additional charges will be determined in order to perform the necessary required repair work. The Customer may decide to continue or discontinue additional work at such time. XXXX Construction Services would not be liable for any delays caused by the matters listed in this exclusion addendum/clause. In the event of one of the afore mentioned delays, we reserve the right to relocate to another work project until the stated matter(s) are rectified.

HAZARDOUS MATERIALS: Standard Exclusions; Defined as Lead, asbestos, mold spores, toxins, dangerous chemicals and their vapors, and all other materials categorized as “Hazardous Waste” by the EPA, as being dangerous to the environment and/or health of living organisms. Client is responsible to notify this contractor of any known hazardous materials existing in their structure, property or other locations of the contracted worksite, and it’s adjoining areas prior to the contract agreement being finalized. In the event of discovered Hazardous Materials that require abatement or handling of any kind, work will cease. Additional charges required to retain a licensed and state approved company to conduct the removal and disposal process will be evaluated. This would include, but not be limited to, scheduling, testing, inspections, transportation & disposal, legal documentation, filing fees, decontamination, clean up, and all other related charges. All costs related to the inspection, evaluation and required abatement work are the responsibility of the Client. XXXX Construction Services would not be responsible for any delays caused by such discovered issues. In the event that one of the afore mentioned issues were to cause a delay, we reserve the right to relocate to another work project until the stated matter(s) are rectified.

Now, I am not saying that any one of these examples are what a person or company can put into their contracts and be legally covered for, in their state, or their specific situations.
I am showing these as examples of points/clauses, that you may need to include. Obviously, wording is about legality, and all contracts should be reviewed by an actual lawyer, before being put into use by a contractor.
 

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Banned
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14,078 Posts
I would like to know how to handle this scenario.


Say you are in a remodel where theres a partial tear out and after the demo you find something that was not predicted in your bid... for example a previous bad remodel 30 years back left coverd up or horrid mold issue, or buried gas lines where they shouldn't be (could be just about anything that isn't a cheap,fast&SLeasy way to just fix it)

Does this then require a new adendum to the contract...

and should there be a clause written in the original contract for these unforseen challanges ?

In remodeling I know there is so many unforseen goodies hidden in the bowels of alot of homes.:w00t:

I just would like to know how the best and when is the best time to deal with these blessings
Of course. Just because you are working on a customer's home doesn't mean you inherit all it's problems.
 

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Discussion Starter · #5 ·
I Love you people !

Thanks you for your wonderful imput... I just Love you people...


Now I guess the next Question: Is there a generic contract I can get a hold of to use as my contract? or do I need to make an appointment with a lawyer (any lawyer of a specialized one for construction?) and have them make a new contract just for my company ? Or is there a standard Remodeling contract that can be retrieved somewhere?
 

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DavidC
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2,550 Posts
There are many contracts available with copy/paste clauses or fill in the blanks. There is a lot to be said for making absolutely sure it will be legal and binding in your local.

I went to my attorney and requested a contract that met all state and local requirements, balanced and to be written in plain language that I could explain. After his first document I asked for a couple more clauses that I just thought would make it better, he agreed and amended.

I visit to his office, the rest on the phone and fax. Total cost $150.

Good Luck
Dave
 

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I am all about AIA contracts, even though they favor they HO. You can go to your local AIA office and purchase a contract(about $10-20), then retype it excluding the biased sections. They also sell Change Orders and other docs you need. AIA docs will protect the architect first(go figure) the HO second(architects client) and the builder last....
 
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