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How should I counter?

Pennsylvania

I was fired on the spot from an residential project. Interior remodel. Did not make the deadline; scope creep, covid, delays in materials, should have estimated for a longer completion date, etc. The customer called me to meet at the site, i was given one day to vacate. I was paid roughly 50% of the overall bill. The customer is demanding ~$4400 refund via legal assistance. They have not accounted for $1200 water heater that i fronted for the customer. They were also provided discounts (10-14%) for materials for me providing labor. In addition, they originally left the paint type to my discretion. When we arrived at the painting milestone, they stepped in with a paint that cost 75-80% more than the standard paint (~$400) we originally agreed on. Please review and reply. Regards, Jay Dunn. Essential Home Improvement 570-509-3042

1 reply

Jul 20, 2021

I am not sure what you mean when you say that the "customer is demanding -$4400 refund via legal assistance." If you are saying that the homeowner sent you a letter through an attorney, you might be forced to reciprocate and lawyer up to protect yourself. Any settlement of the incomplete contract is going to come down to how clear the written contract and change orders are in describing all the changes in scope and cost.  

Was there any contract language about the owner terminating for cause versus convenience? If the owner says that you breached the contract and failed to correct after reasonable notice to cure, that represents a much more persuasive position then the owner expressing frustration and firing you in anger. You seem to be suggesting that they are arguing that you front-billed ahead of the degree to which the contract was performed. If this allegation is inaccurate, I would suggest that you provide an inclusive written accouting which thouroughly describes the value of the contract work and authorized extras performed.

If you needed an attorney's assistance, please feel free to reach out (cschmitt@vaughanbaio.com). Regardless whether you consult me or another construction attorney, I would recommend that you first take the time to review your contract and change orders so that you have a clear idea of where the dollars are.      

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