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Is my roof contractor entitled the recoverable depreciation?

TexasConstruction Contract

My roof contractor asked me to give them all the funds from my insurance including recoverable depreciation. Is my contractor entitled the recoverable depreciation? I don't see the recoverable depreciation anywhere in the fund agreement contract as I summary it below. Total Amount (Plus and approved supplements)-$ 99,999.99 I hereby contract Roof Contractor name, LLC to serve as my preferred contractor on the above referenced property regarding the above mentioned insurance claim/ address. This agreement gives authorization to Roof Contractor name, LLC to work with the above listed insurance company to negotiate and finalize the correct scope of work and pricing that should be provided for the insured/ property owner. By signing this agreement, Roof Contractor name, LLC agrees that at no time will the insured be obligated to pay no more than insurance proceeds, and the deductible. The insured agrees to use Roof Contractor name, LLC as their roofing contractor. Repairs will commence upon approval by the above listed insurance company. Compensations for repairs will be due to Roof Contractor name, LLC. If above listed insurance company denies the claim, this agreement becomes null and void. Thanks,

2 replies

Feb 17, 2020
If the agreement includes provisions which entitle a contractor to specific amounts - like recoverable depreciation - then those amounts should generally be paid to the contractor. But, if the contractor isn't specifically entitled to that amount, and if the contractor has been fully paid what they're owed under the agreement, then I don't see why they'd be able to push to recover it. I have little experience in this arena, though. For more clarity, it'd be wise to consult a local Texas construction attorney who's used to navigating insurance claims. They'd be able to review the relevant project documents and communications, then advise on how to respond or otherwise move forward.
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Jan 31, 2021
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