I need to know if legally I can pursue payment for amount over what contractor originally estimated on a historic renovation to fix structural damage and replace porch floor due to rot. Estimate was done in Quick Books and emailed to client. Client approved estimate, signed and made requested deposit payment in the amount of material and supplies to be purchased. Work began and within the first couple days contractor discovered issues that affected completing what we were hired for. Contractor said he talked to client about issues found and the need for my re work days to fix what needed to be to continue our work and that cost would be more than initially estimated and options on what could be done in regards to porch railing since damage was discovered to more severe when it was taken down. I was told by contractor client was aware and understood and all was still a go. On the 4th day which was originally planned to be the last day, I went to project location and met with client. Client made a partial payment and we talked about 2 other projects she wanted bids for and she asked how many more days will it take to complete current work and I told her I wouldn’t know until the crew finished for the day and contractor let me know but we would let her know. Well over a week later they still weren’t done with initial work due to fixing issues as they worked. The next week I was told by the contractor to invoice client and was told initial work was complete and they are ready to work on sealing and finishing porch. So I sent final invoice and client informed me work for that was not complete and she only agreed to pay initial estimate amount. Contractor told me he discussed with her why the railing wasn’t done but would complete a few finishing items they didn’t do because they anticipated doing the sealing and finishing and it made more sense to do that before putting up the railing and closing up a few gaps and edge trimming porch boards. Contractor showed up to work on items client requested done before final payment but was given a check for final payment to equal original estimate, and told contractor to leave and they were not to come back and do any more work. Client made it clear she wasn’t paying the amount over because she didn’t agree to it, was on a tight budget and the extra work days (labor expenses) were on us and not her fault and her responsibility to pay because she didn’t make any changes nor were there change orders but it falls on the contractor for under estimating. Based on estimate that included project schedule and statement about timely payment, change orders and how additional expenses were to be handled, I agree with client and will have to absorb the extra cost. Contractor strongly disagrees based on his conversations with client and is adamant about pursuing payment for extra amount. So I need to know if client is right and no further payment can be made or if my contractor is right and I can continue to request payment.
Hello,
Complex question. Simple answer: Contractor is correct.
You are entitled to payment for the value of the work that was performed. The estimate did not contemplate the additional need for work to fix things that would not have been seen but that does not excuse the Client from not paying for the work they wanted to be completed especially when they had notice of the overage in labor and time. If the client accepted the work as opposed to stopping it when they found out about the extra damage, there is a likelihood the contractors would succeed at trial.
Obtaining payment, however, is going to be like pulling teeth. There is a likelihood that the Client has no additional funds to pay for any overage of the project. If it is their primary residence, it cannot be foreclosed on. You would incur the cost of pursuing but may not find a pot of gold at the end. That is always a risk, however.
In short, I see grounds for a mechanic's lien and grounds for a lawsuit using breach of contract, and quantum meruit (among others), as your causes of action.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com