question about contracts?

Question

I have a second question concerning a contract. I signed a contract to have our roof done. which included the gutters and its written in the contract. Now there coming back saying they want an extra $240.00 cause it cost them that much more..and was unexpected. They said they would not do the gutters and then we would not have to pay the extra $240 or they do the gutters and we pay the extra $240. That just does not seem fair esp since they contracted with us to do them to begin with and not for any extra..it was all supposed to be included. What do I do? I am not happy with this company..yet I dont want to make them mad before they finish the job cause I was adviced not too. They have also took some of my sons wood and used it. My stomach is in knots over this and I dont know what to do? It just makes me wonder how well my roof is gonna hold up. They wrote in the contract that they are guarteeing there work for 5 years...but why do I still feel very uneasy about this?

Answer 1

If the contract does not allow for them to renegotiate the price, or doesn't have any clauses saying something like "the quoted price is only an estimate and is subject to change," then they are obligated to perform just as you would be obligated to pay them if you changed your mind and didn't want new gutters. If they refuse let them finish what they will do, hire a new company to fix the gutters and sue the old company for the difference in price in small claims court. You will win so long as you document every thing. Maybe record a conversation or get it in writing that they refuse to perform. Check your local laws regarding secretly recording phone conversations otherwise let them know you are recording this.
You could also let them know you intend to bring a claim if they fail to perform and can use this as leverage to negotiate a new price, maybe you can get it cut in half.

Answer 2

If your first contract included the gutters you do not have to pay anything additional to have them done. In contract law under the State of Frauds additional consideration would be required for them to charge you more to do the same things that were covered in the original contract. In other words they would have to be doing something beyond what they were originally required to do. As best I can tell from what you have related this is not the case therefore you do not legally have to pay the additional money.

You should not have paid for the entire job yet. Hopefully you haven't. You can tell them that you will pay more for it and you have no legal duty to pay it when they are done with the job. Let them try and take you to court. It will likely cost them more than the $240 so they will just let it go. Even if they do take you to court they will lose.

Do not tell them that this is your intention or else they may walk off the job leaving you with a bigger headache

When you write them a check for the final payment write on it "payment in full for all services provided." Once they cash it they will be two time losers because they have accepted the check baring any other claims.

If you have already paid them you could sue to get it back but it will likely cost at least half of that to initiate the suit.

Good Luck.

Answer 3

This is not a reputable company. You have to say no if that contract is ironclad. Like if this roofing company had done its true estimate then this should be from experience.

If they are half way through construction then I would have them cease and file a claim of contractual failure. Then hire another contractor and then file suit against this company for contractual failure to pay for the extra value of bringing in another contractor to finish the job.

The other option is to tell them to finish the job and that you will Pay the amount on the contract. Assign the balance to a trust account pending action telling them that this amount is under dispute. Then attach letters of claim for overpayment. And bring it to Small Claims court. This company is a sleazy company they dread going to court more than you do. Its a stand off.

In addition your son should send them an invoice for the material used which will likely be more than equal to the amount of overpayment.Then take them to court as a claim because you can count on they will not pay for it.

Then hire a building inspector to go through the roof as it were. It is likely that they were required to undergo a building inspection process. Attach that cost to the adjustment claim in the court action.

Depending on the contract. And you should have a close look at the contract you will find some language indicating that they do have the right to have an adjustment for costs. And some legal jurisdictions allow for a percentage of increase on any renovation job. Looks like they may be exercising that contractual right.

You must also send a letter of complaint to the Better Business Bureau and to any Consumer Protection department at city or state level.

What they may be doing is to find out if they can get away with getting extras. If you cave in easily they will be back with another costly problem. Then another. They've done this stunt before.

Next time don't always take that lowest bid. If it sounds too cheap it probably is too cheap.

Answer 4

Neither side can change a contract once it is signed without the permission of the other party. If they gave a fixed price for the work, they have to do it and eat the extra costs themselves.

They also can't take materials that were not covered by the contract - again they owe you for that.

Contact the better business bureau and file a complaint; then take them to small claims court to get the $240.

Answer 5

If the contract specifically calls out for work on your gutters, and they choose not to do it, tell them that you will:

1. Notify the state government about non-failure to perform their contractural obligations - my state requires that every contractor have a license, which is on all contracts and business cards, so that unethical ones can be reported.

2. Call the local Chamber of Commerce and Better Business Bureaus about their reluctance to live up to their agreements.

Send this in a written letter, if necessary. Perhaps there is some negotiation to be done. But really, it's called out in the contract, It seems to me that this is just a shake-down for more money.

They think that you will pony up. Don't cave in to their demands.

Answer 6

You have a written agreement that they would do x amount of work for X amount of money. Hold them to it ! But, make sure their work is completed before you tell them this.
If on the other hand, the escalated prices are legitimate, given the hyper inflation we are seeing now, because of last years gas prices, you could agree to split the difference. They would probably agree to that.