Legal Question in Construction Law in California

house work overcharge

company replaced 50 ABS Vinyl pads under 50 piers under our house. It took 2 men 2.5 hours.

From Internet, each pad cost about $10...$500 for all 50 pads.

Hemet,CA construction worker pay

is $20/hour..for a total labor cost of $!00. So, a total labor + parts cost of about $600. Company was to take pictures before & after doing the job. This was not done. Company says the contract could be cancelled within 3 days. That was never

mentioned to us.

We feel we deserve about $1400

back.


Asked on 7/08/09, 6:24 pm

4 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: house work overcharge

Nice try, but you don't get to price shop their materials or their labor after the fact, or contest or renegotiate those items after the fact. Presumably you agreed to a bid and contract price. That's what you pay, unless the contract specifically says differently. Such contractor businesses make their money by charging more than their costs, duh. If you wanted to negotiate the project, you should have done it before agreeing to the contract.

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Answered on 7/08/09, 8:44 pm
Terry A. Nelson Nelson & Lawless

Re: house work overcharge

Nice try, but you don't get to price shop their materials or their labor to contest or renegotiate those items after the fact. Presumably you agreed to a bid and contract price. That's what you pay, unless the contract specifically says differently. Such contractor businesses make their money by charging more than their costs, duh. If you wanted to negotiate the project price, you should have done it before agreeing to the contract. Now, IF this is a contract requiring 3 day cancellation rights, which is doubtful, and IF they didn't put that in the contract when legally required, then you may have a claim that you are entitled to cancel /rescind, leaving them already paid, and with a claim against you for the 'reasonable value' of their services, which is not the same as your attempted low ball pricing. You can fight this out, but I'd suggest you listen to legal advice given you after full discussion of the facts with an attorney.

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Answered on 7/08/09, 8:49 pm
David Gibbs The Gibbs Law Firm, APC

Re: house work overcharge

Attorneys Whipple & Nelson are correct. Unless the breached the construction/home improvement contract, then you really have no basis for a claim. If you paid $2,000, you did not overpay for pad replacement and home re-leveling. I have had in the past a manufactured home dealer's license, and what you have to remember is that the guys who go under your home, and replace these pads and re-level your home are not off-the-street labor. They have some specialized training (assuming they did it properly) in MH setup and leveling. Further, the contractor's worker's compensation insurance is a huge part of his or her overheard, which you have not factored into your own bid. If you feel that you got ripped off, then you should have contracted the job yourself - maybe you could have had it done for $600, but your home would assuredly be out of level, and the job done improperly. Over time the home would suffer due to the additional stress put on it by not being properly blocked and leveled, and in an earthquake, your home may actual come fully off its piers if not properly set. You did not pay for 2 laborers and parts, you paid for the skill, training, expertise, overhead and profit that the contractor is entitled to.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 7/09/09, 12:16 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: house work overcharge

Why $1,400? Did you pay $2,000?

Did you sign a written contract? Does the contract specify the price or pricing formula? Is the three-day rescission right mentioned prominently in the written contract?

Do you realize that contractors have expenses in addition to the base labor rate and store price of materials? Even if you can get competent construction labor in Hemet for $20 an hour (which I think doubtful), there are steep fringe benefits and payroll taxes and worker's comp costs. What about travel time to and from the job site? What about equipment, tools and machinery? What about overhead? Plus, the contractor is entitled to a profit.

You may be entitled to a refund if the contractor violated the contract, but you have no legal basis for a refund based on trying to estimate what the contractor netted from the job.

Did you get more than one bid?

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Answered on 7/08/09, 7:16 pm


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