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Customer wont pay full amount owed

Texas

Customer thinks my wordage of “estimate” is the same thing as a quote or a bid. Now he wont pay the full amount.

2 replies

Oct 20, 2021

You should consider preparing a letter to mail by certified mail, return receipt requested, to the customer to set out the facts and to demand the relief that you want. Attach support for your claim such as your contract and invoice, and photos of your completed (but unpaid) work. Make sure that your letter is professional and business like as it may be evidence later.

If need be, consider filing suit in small claims court (assuming that your claim is less than $20,000), using your letter as evidence.

You may have mechanic's lien rights, but you really should retain a construction attorney to review and evaluate your legal position based on the contract and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and you really need to make sure that if you file a lien, you have properly and appropriately done so.

Filing an invalid lien could subject you to liability under the Texas Fraudulent Lien Act, and you could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. Facing such a claim would add insult to injury.

Good luck.

 

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Oct 28, 2021
Texas law is not clear on the distinction between the term"estimate" and the words "contract" or "obligation". After all, when the contractor says"estimate" the customer hears "this is the price." it comes down to two factors: (1) how much variable is there between the estimate and the actual cost. Here most courts use a reasonableness standard; i.e. how much does the final number vary from the estimate. (2) is there clarifying language accompanying the word "estimate" to make sue the customer knows that is not a fixed number. Of course, best to also keep customer informed as the job proceeds so the eventual number is not a complete surprise. If you do this, the customer probably will not be able to deny the final number.
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