Question about General Contractor and concerns.?
Question:I hired a a general contractor to add a room to my house. We signed a contract for plans and permits. Now they tell me that permits cost more than they had anticipated and are asking for the difference (2000.00). It seems to me that they should have known how much permit fees are for such a project. Am I wrong?
Also, there were lots of changes made by the city (which added to the project price a significant amount over 10,000 dollars), which makes me wonder if they really understood the scope of the work to be performed. I am worried because we are getting ready to sign the contract for the actual work. Any suggestions or feedback would be greatly appreciated.
Answers:
You do have reason for concern...First of all, once the General Contractor has given you a price they are bound by it except for any unforseen conditions ( which premitting is not one of ) This is the GC's problem if they didn't bid it correctly...As for additional changes I would ask to see these changes in writing or atleast go to the Building Department yourself to see when these changes happened...It is very unlikely the the GC didn't know about these changes because the Building dept will post any up coming changes will in advance of the date that it becomes effective..
Please make sure that you obtain a copy of the GC's insurance and possable be add to ( As the property owner ) as additonally insured... This is a common and almost required procedure that we do on every job. Please check out my contact info if you have anymore question because you need to protect your property no matter what this GC is telling you... Good luck
Please contact someone with knowledge of the law that pertains to such opperations.
Talk to the city to get a clear understanding of what is involved.
If you signed a contract, you aren't going to be obligated to pay the 2000.
BUILDING PERMITS DO NOT COST $2000.00!!!
Call the county/municipality where you live and ask them what permit fees cost. Also, have you solicited bids from other contractors? Check the references and ask for names and numbers of satisfied customers. I always have such information ready, any contractor that doesn't should not be working on your property!
Did you get several bids ? On a job that large you should already know ( within say $ 1 k.) what the job is going to cost you. There is always going to be some small add ons as in pricing as the job proceeds. But not like $ 12 k or more !!
Take a good look at your contract. Most times, I've seen that permit fees are "reimbursable" which means you must pay whatever the city charges.
On the changes, see what they are. If they are driven by code, you may have an justifiable argument with the designer.
Contracts are tricky, make sure you understand the fine print and be careful down the road on changes that you may make as the project progresses. They can get costly real quick!
First, yes permits can run into thousands of dollars. That being said in most states contractors are not allowed to make a profit or "markup" permit costs. Your contractor should be able to provide the actually receipts for the permits. If the permits were actually $2000 more then the question is why? Second who provided the plans for city approval? Did the GC or an architect. Most GC's know general codes however when you get into load requirements and easements they are not as knowledgeable. Before signing any contract you need to sit down with the contractor and have them explain why the additional cost are needed. Also remember you own the permits. Even if you choose to go with another GC the permits are yours and all that needs to be done is to change the GC with the city. I would suggest getting another estimate for the work. Hope this helps.
If you made a $12,000.00 mistake at your job, would you still have a job? A contractor with integrity that knows his business would have got it right the first time or would "eat" the difference in cost. Have someone else look at it. A small investment in a consulting firm can save you tons of money, heartache, and aggravation.
More Related Questions & Answers...