“I have a customer claiming they shouldn’t have to pay for unforeseen charges and extras…”
"I am unable to pay the sub trades that did the work for me."
July 27, 2015 by Steve Payne
Editor’s Note: In this one single paragraph from a renovator (name withheld), you can see three common problems that can kill your contracting career in short order.
(1) Not having an agreed upon process for approving change orders; and/or having a rough price – given too early – become the final price even when the final drawings and site conditions clearly indicate a higher price.
(2) Working for a “friend” and permitting that friendship to let them take advantage of you
(3) Continuing to work on a job long after massive red flags have come up about the client’s willingness to honour a deal.
“I have a customer claiming that they shouldn’t have to pay for the unforeseen charges and extras based on a rough price and drawing which was done months before actual drawings and contract. It is a substantial amount of money. The job is complete minus a generator that is set to go in but I am reluctant to install it because I know I won’t get paid. I have been lenient with the customer because they were friends. From day one the contract has not been met by them and I’m curious what my best course of action is. I am not a big company and this situation has caused huge strain on my family. I am into this at more depth than I can handle – and in fact I am unable to pay the sub trades that did the work for me.”