Q: Does a home builder have to provide documentation for materials purchased ? The contract is a lump sum.
A: Inquiry Re: Lump Sum Contract: The short reply is no, a Prime Contractor under a Lump Sum Contract is not required to show ANY of their costs (material charges, labor charges, etc). If your situation was "Cost Plus" then you are entitled to see the costs in order to verify the accuracy of, and basis for, the Contractor's invoices, because the invoices must contain the "Cost" [of materials and labor] plus Overhead and Profit marked upon those costs, in a Cost Plus situation. Here ? a lump sum arrangement does not entitle the owner to request any of the Contractor's costs, whether labor, material, equipment rental, and the like. NOTE HOWEVER: nothing herein obviates the requirement of a Contractor to supply No. 2 and No. 3 (and, eventually No. 4) Releases from the material suppliers whom have served a Preliminary Lien Notice upon the homeowner.
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A:
In California, when a home builder provides a lump sum contract for construction, they are generally not required to provide detailed documentation for materials purchased as part of the contract. However, it's advisable for clients to seek a written agreement that outlines the scope of work, materials, and specifications to ensure clarity and avoid disputes. Consulting with an attorney can help you understand your rights and responsibilities under the contract.
Sincerely,
James L. Arrasmith
Founding Attorney and Chief Lawyer of The Law Offices of James L. Arrasmith
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