Trouble on the farm with contractor

[40Kchicks]

I haven’t been on the board much this year because we have been adding on to our poultry farm with four new 60X500 buildings. The project was huge for me and my wife but we did get it ready for birds when we needed to. For the most part I am very happy with the end result but I do have one problem I would like to ask about.

When I started this project I went to suppliers and contractors to get prices to establish my construction budget. The electricians I was going to use are the only local electrical shop in town. They were just finishing up doing the electrical for a friend who was building 5 new poultry barns the same size so they are very experienced with poultry barns. The electrician would not commit to a hard bid, just time and material, so I asked them what the barns they were working on cost. He told me they were at about 15K per barn but that they had to run electrical much farther so my project would possibly be less. So I put 60K into my budget. Then October 1st they gave me a progress bill for 50K. I met with the electrician and expressed my concern that we had a month left of work to go and only 10K left in the budget. He then told me the bill may come to 80K. I got really upset with them and told them it better not because I didn’t have the extra money. Nothing else was said about the money until the project was done November 3rd and they then sent me a bill for $137,000. I just don’t have the money to pay them the extra 77K. I really like the work they did for me and feel really bad about the whole situation but they lied to me and have now put me in a very difficult financial situation. I have never not paid a bill but what do you think I should do.

Eric

 

[Doc_Bob]

No contract for a fixed price, no choice. If you said time and materials with no cap, sounds like SOL.
Bob

 

[Doc_Bob]

I should have asked what the contract you signed specified.
Bob

 

[shvl73]

I should have asked what the contract you signed specified.
Bob

That was my first thought also. Anything in writing?

 

[Dusty]

The only variable in the "estimate" would be materials. I would be talking to the neighbor and see what his labor cost was. I would also go over the bill very closely, because there might be some double charges for materials. I can see material costs skyrocketing, but they should have advised you of that when you first raised concern about costs. I don't like time and material deals because there is no cap on costs and the contractor can do as he pleases. It is just bad business. The best that you can do now is to work out a payment plan with him, after you try to negotiate the bill down. Also, check the time sheets for the labor costs.
Dusty

 

[MikeD74T]

Check with your state consumer protection agency. Some states have laws regulating estimate accuracy. For example here's New Hampshire's law re: motor vehicle repairs.

Section 358-D:5
358-D:5 Effect of Exceeding the Estimate. – Upon the completion of any service or repair work for which an estimate has been given, a motor vehicle repair facility shall not charge the customer any amount which exceeds the estimate by 10 percent without his written consent.

Verbal contracts/estimates can be binding in court. A 128% overage is unreasonable unless there was a substantial increase in scope of work or cost of materials involved. MikeD74T

 

[Brant]

This is a contracts issue, and you should talk to a lawyer ASAP. I think you already know where this is headed, so you might as well get a lawyer now.

 

[40Kchicks]

I may indeed be out of luck. The contract I signed was for them to do the main electrical hookups for the new barns and tie in the new electrical with the old. Electrically hook up new poultry equipment and lighting. The rates were for $60 an hour for journeymen and 40-50 for apprentices depending on the level of their apprentices. I thought I had one journeyman on the job and 3 apprentices but actually two of the guys were journeyman level.

I later found out that they did the same thing to my friend at his poultry ranch. They charged him and extra 75K also. I believe they hook business with low verbal estimates then drop the bill bomb after the job is over. I do have witnesses to my conversations about the estimates but does an estimate hold any weight is court?

Dusty I do believe they were honest about the time and material spent on the job. If they would have given me an honest estimate I could have got that put into the loan from the start and it wouldn’t have been a problem but now it is too late to add this so now I’m in trouble.

If this was 10% or even 20% over I wouldn’t worry about it but 77K is a lot of money and there is no way they could be that far off without it being planned.

Eric

 

[Dusty]

If they pulled the same trick on the other fellow, then I suggest that you both see the same attorney. He may be able to help you and the other farmer also. If I were the judge, I would be very interested in how they conduct business. If you can find a few other people that have been burned, that will make it even better. Don't know how many it will take to make this into a class action suit, but it can be done. They are unethical to say the least. They make there money the old fashioned way... THEY STEAL IT!!!!
Dusty

 

[gemini5362]

First thing you need to do is demand an Itemized statement. My wife is an attorney in NorthWest Arkansas. I used to hear unbelievable horror stories about people coming to see her where contractors had give them an estimate and then really jacked up the price. If there is not a written contract then there is not a lot you can do. The advice you were given to see a local lawyer is very good advice. Even though this guy sounds like he is not too honest dont be suprised to see part of the increase being due to the rise in prices of copper. One of my wifes clients is a contractor and he told her the other day that copper has gotten so expensive they have to have someone guard a new house when they wire it until they can get the walls in place and have it finished. Since you were given a price quote for labor when you get the itemized statement check the amount of labor that you were charged for. I would then contact someone non local and ask them how long it should take to wire 4 houses like that. If it is significantly less then maybe you can charge him with fraud. You definetly need to SEE AN ATTORNEY IMMEDIATELY they can file a mechanic and material lean against your buildings and force you to sell everything to pay it.