Legal Question in Construction Law in California
Contract Recourse Question
We were presented a contract for a room addition to our home. The contract states the following.
1. Demolition of existing brick fireplace and wall
2. Addition to family room approximately 7 x 16 with two windows.
3. Additon to maintain existing floor level
4. Exterior finish to be stucco
Cost $ 24,345
Met with contractors, informed them that they were $ 10,000 higher than the other quotes.
They stated if we hired them, they would build us a raised cement foundation that would support a sub wood floor that would match the height of our existing.
They stated if we hired them, they would scrape the acoustics off our dining room ceiling and re-drywall.
They would drywall the current living room ceiling that has open beams.
They would primer and paint the new eves on our addition to match the existing.
They would install a new outside light with a switch on the north side of the new addition.
They have refused to do any of this work stating that they have never agreed to this.
They verbally agreed to do this work. That is why we signed the contract for the higher price.
We feel they have fraudently mislead us into signing a higher price contract.
What recourse do we have ?
1 Answer from Attorneys
Re: Contract Recourse Question
First of all, the Business and Professions Code (section 7159) requires home-improvement contracts over $500 to be in writing. This provision is designed to protect consumers from being duped by contractors, but here it may have the opposite result. You made a big mistake by not getting the changes in writing!
Due to the amount of money involved, you are probably better off getting a lawyer than trying to collect up to $5,000 in small claims court or trying to work out a settlement yourself.
The contractor is licensed, I suppose? You could try the licensing board, but the facts here and my experience with them in general suggest this would not be fruitful. Well, give them a try, but don't expect much action.
Your best chance for a recovery of damages, a reduction in contract price, and/or completion of the work according to the oral modifications is to retain a lawyer to compile all the facts and make a formal demand, to be followed by a lawsuit if necessary.
Your success may depend upon the amount and quality of evidence you can pull together to support your claims regarding the oral modifications. Were there witnesses present? Is there any kind of a paper trail, such as architect's drawings or approved plans?
Construction contract additions and changes should never, never be made orally!