Contractor Mistake

[LivingAlmostLarge]

What would you do if a contractor underestimated the cost of job?

My heat pump guy is almost done, gave us a written estimate that we signed and sealed.

Then the cost of one particular material was 2x the estimated cost. He said this is cutting into estimate.

He is trying to not finish up the job like he wrote in the contract. The material was estimated $20/part, instead it was $40/part.

Should we be expected to cover it? Should we just make him finish it?

[Caoineag]

I guess I am not understanding this. An estimate is an educated guess, not a promise. I have had people quote me a price and that is written in stone but that isn't an estimate and none of them were stupid enough to write materials into the contract offer. Also you said it was a mistake. Is it a mistake or did the price of material go up from the time of estimate to now?

Personally I would cover a material price increase to avoid him doing shoddy work even if he did make a mistake on a contract offer. I would not even second guess him on an estimate. Materials are usually the unknown variable.

[disneysteve]

My heat pump guy is almost done, gave us a written estimate that we signed and sealed.

Do you have a written contract or just an estimate? If it is an estimate, there is probably some fine print on there explaining that an estimate is just that and the actual price may vary.

[LivingAlmostLarge]

Written and signed contract.

$2k compressor (no idea what it really cost)
$1750 parts
$1k labor.

Done deal.

[DayByDay]

When my contractor husband discovers mid-job that he has underestimated the cost of a project, he honors the contract price (as he legally should) and completes the job without saying a word to the customer about it. It's not the customer's problem.

It's up to you whether you want to offer your contractor more than the contracted price, but he shouldn't expect you to cover it.

[disneysteve]

Written and signed contract.

When my contractor husband discovers mid-job that he has underestimated the cost of a project, he honors the contract price (as he legally should) and completes the job without saying a word to the customer about it. It's not the customer's problem.

I totally agree. A contract is legally binding. The contractor is required by law to honor the terms that he himself set. I wouldn't pay a penny over the contract price and I wouldn't hesitate to take legal action if the contractor refuses to honor it.

[LivingAlmostLarge]

I feel sort of bad I guess because he made a few errors along the way.

Underestimating the cost of the heat pumps by $20/each. Then this mishap with the conduits. Then not including the price of materials for the electrician.

But then again, he also saved money in other areas. The electrician didn't have to do as much as promised. He didn't need as much materials so I thought that more than fair. He also didn't have to buy 3 new conduits, only 2, but he was whining about the cost.

[wincrasher]

He won't learn anything if the customer pays for his errors.

Also, some contractors use this as a technique to extract more money from clients. They whine and complain and try to make you feel sorry for them.

I'd watch them like a hawk now any make sure they don't cut any corners. I hope you are holding money back until the end to make sure they complete until you are satisfied.

Sometimes the low bidder is not the best choice. If they are much less than the other bidders, often times it is due to a mistake in estimating, or they plan to get "extras" from you after the fact.

[Ima saver]

My husband is a builder. He will give an estimated cost of building a house, but never signs a contract. He has no control over the cost of materials or what the customer choses to put into the house. (We had one customer put an $8000 light fixture in the foyer)

[LivingAlmostLarge]

Nothing changed. And no we've been making payments along the way. Milestones to pay for things, 25%, 25%, 25%, 25%.

I did not change anything, like i said he knew what he was supposed to be doing.

Not the lowest quote, but recommended from a friend, so we used him. I didn't feel comfortable with the other people.

[maat55]

Are we talking about 20 dollars?

If we are, I'm surprised he does not eat it for good business reasons, while I'm surprised you would raise a brow at so little.

[LivingAlmostLarge]

More like $500.

[maat55]

More like $500.

I'm wondering when he found out that the cost was more than he planned for.

He should have bought the parts before doing any work. He should have known the extra costs before starting the labor. Am I wrong?

[LivingAlmostLarge]

He got paid 25% deposit, 25% Compressor, 25% next, and final 25% payment.

[lucmas]

I guess I am not understanding this. An estimate is an educated guess, not a promise. I have had people quote me a price and that is written in stone but that isn't an estimate and none of them were stupid enough to write materials into the contract offer. Also you said it was a mistake. Is it a mistake or did the price of material go up from the time of estimate to now?