Q: Home remodel went 70% over budget—and contract is fuzzy. Do we still owe our general contractor his 15% final payment?
Our G.C. said he could remodel and expand our small, 50-year-old Calif. home for $300,000 and complete in 8 months. After 11.5 months, we insisted on moving back in even though it was not completed. Total cost for labor/materials so far has been around $470,000. Due to the delays, we had to pay an extra $12,000 in rent for the condo we were living in.
GC says we still owe him 15% of total project cost for his profit. We don't want to be jerks, but we feel his disorganization and mismanagement cost us a good chunk of $$, so it is our opinion that an additional 15% (on top of all the labor we already paid him) is unwarranted. The contract is somewhat flimsy (sigh!), so we are at an impasse.
BTW, there were no change orders and we did not "go big" on finishes; all bathrooms used IKEA vanities, for example. The only real changes we made were to cut out items along the way (patio trellis, metal roof, etc.) so as to save money
Home Improvement Contracts are required to be in writing and for a fixed price, have a fixed completion date and have certain other requirements.
Have an experienced Construction Litigation Attorney review your contract and the facts and advise you on your legal rights and remedies.
It sounds like he may be taking advantage of you, from what you have said.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.