Los Angeles, CA asked in Construction Law and Contracts for California

Q: Contract with construction company. Paid them over $800,000 found out that the actual cost was $400,000.

Found out that the contractor (employee of the company) charged us $800,000 to remodel our house the owner of the company said that the actual cost was $480,000. Our contract stated that we would pay the cost of the work done plus 15% for the contractors fee. This work was completed in 2012. We have problems with things in the house. Do I have any recourse?

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1 Lawyer Answer
Bruce Alexander Minnick
Bruce Alexander Minnick

A: Unless you have provable evidence of fraud you may have run out of time to da anything about this very unusual situation. And before you move in the direction of suing for fraud you should hire a lawyer experienced in real estate and business contracting law. You may find out that the owner of the company is either wrong or is not being truthful about the actual costs of the remodeling. There are several good reasons to suspect important issues about which you are unaware.

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