Menu
Home>Levelset Community>Legal Help>Contract Price/Anticipated Value

Contract Price/Anticipated Value

Georgia

I own a Heavy Equipment company. We supplied construction equipment on a job to a subcontractor. We filed all of the necessary documents through Levelset. At the time of filing we believed that only one two pieces of equipment was going to the job for 1 month, so we listed the anticipated value as $15k. I was told by Levelset that this was just a best estimate. The customer ended up getting several pieces of equipment and kept them for almost 3 months. With equipment damages the invoices totaled $106k. I also sent a notice after 30 days of nonpayment when the total was $83k. The GC never once got a lien release from us or contacted us about payment. They are now saying they are not liable for paying anything over that $15k. The $15k was in fact a good faith estimate at the time of filing the paperwork. Is it true that they are only liable for $15k? We have also filed on their bond, but must file a lawsuit before the bonding company will deal with us.

3 replies

May 29, 2020
It sounds to me like you have acted reasonably and the 15K figure was a good estimate when given. Also, it sounds like you increased the amount by notice to the GC. So I do not believe the GC is correct and I do not believe that you are limited to the 15K on your claim. If this is a private project, then you will want to ensure that you file your claim of lien in a timely manner, within 90 days after your last providing the equipment. You also want to ensure that you make a timely and complete bond claim.
1 person found this helpful
Helpful
May 29, 2020
The Notice provision is only designed to provide a reasonable estimate not an absolute bar to the claim. once the GC has received an appropriate Notice to Contractor, the GC needs to protect itself by receiving appropriate waivers.
1 person found this helpful
Helpful
May 29, 2020
The contract will control the outcome. I'm unclear what the "necessary documents through Levelset" are, but if the contract states that it is an estimate for 1 piece of equipment for one month and that additional charges would be due for additional equipment and time, then you should be able to successfully pursue your claim. If the equipment was used within the past 90 days, you may still have the right to file a lien. Therefore, you should have an attorney immediately review your contract and your invoice(s).
0 people found this helpful
Helpful