Certificate of Completion -Our contractor added 20% (overhead/profit) to include all costs of subcontractors.

8 months ago

We were surprised by final invoice from contractor which included a markup on subs. He told us the Certificate of Completion had to be revised to include the total cost of the project. The 20% markup was not stated in the original contract. Is this legitimate?

Senior Legal Associate Levelset
437 reviews

I’m not entirely sure I understand the situation – but, generally, a contractor is only entitled to bill based on the contract they’ve signed and prices they’ve agreed to charge. It’s common for these amounts to escalate a bit due to change orders issued throughout the life of the job and unexpected additional costs for performing the work. However, if a contractor has agreed to bill based on some formula, they won’t be entitled to arbitrarily change that formula when it comes time to bill the job.

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