North Hollywood, CA asked in Construction Law for California

Q: Is there a limit on the markup for 3rd party invoices? It isn't mentioned in the contract.

There is a column on the invoice for the markup amount. The items I'm questioning have nothing in that column.

This was a fire restoration. One room was damaged and the attic and floors throughout. The bill for the engineer was $9,300.

Six joists were replaced, all floors re-tiled, new insulation in attic, sheetrock in the one room, and entire house painted. All salvageable items cleaned then stored.

Average price for engineer I'm told is $3,000.

Storage charged is 3 units 10' x 15' at $2,300 each.

The job took nine months, and the total of all invoices is $184k.

1700sf house, room with fire damage is 14'x16'.

This company swooped in on my Aunt no more than 10 minutes after the fire dept left.

Is there a law or at least guidelines for the 3rd party invoice markups?

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1 Lawyer Answer
James R. Dickinson
James R. Dickinson
  • San Bernardino, CA
  • Licensed in California

A: You've provided some good information here, but more is needed (e.g., what does the contract or agreement state on this issue?). Don't share more here; instead, speak with a local attorney. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]

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