Legal Question in Business Law in Maryland

Contractor charging for ''extras'' at the completion of work

I hired a contractor to do some work in our home. Time to complete was 4 days. Once he started work, I asked him for an estimate for additional work. A change addendum was then presented. It included the estimate for the additional work, but also included extra material charges. I signed off. This change added 3 days to the schedule. Four days after the revised completion date, the contractor gives me a change addendum, charging for labor costs that he underestimated (original est. 150 hrs. vs. 340 hrs), and difficulties he had with the project. These extra charges add up to $1100. He is awaiting final payment. I haven't signed this last addendum.

At no time was there any estimate of hours given until the the last full day of the project. I was given estimates based on the project, not time. It's the contractor's responsibility to accurately estimate the project. An overrun of 226% is unacceptable in my opinion. Additionally, he didn't mention anything about labor overrages or project difficulties at the time they were happening. Am I obligated to pay these ''extra'' unapproved charges?


Asked on 2/22/05, 8:26 pm

1 Answer from Attorneys

Michelle Stawinski Bouland & Brush LLC

Re: Contractor charging for ''extras'' at the completion of work

It depends on what the "fine print" says. There was likely some information on the original estimate and/or the amended estimate (probably on the back of the form that you were given). That "fine print" likely discusses what happens if the project turns out to be more difficult than expected, say for example if the remodelling project included electrical work and when the electrical wiring was first able to be inspected, it became evident that the existing wiring needed to be replaced due to insufficient insulation. The costs associated with that work is very likely covered. The "fine print" may, in fact, tell you that the estimate is based upon the contractor's estimate of the number of hours that would be needed to complete the project and that if additional hours are needed, the additional hour charges will be added to the final bill. If the "fine print" does include such provisions, you will likely be responsible for the additional charges. If there was no "fine print" or the issues of additional labor is not addressed, you are likely safe to refuse to pay.

Keep in mind that the contractor may file a lawsuit in District Court to recover the $1,100. While you may have a strong case and, in the end, he walks away with none of the $1,100, lawsuits are no picnic. In order to avoid that, consider offering to pay 1/3 or 1/2 of the additional charges as long as you get in writing that the account has been paid in full.

If you would like to have someone look at the documents to determine more certainly your rights and obligations, we would be happy to do that for you.

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Answered on 2/23/05, 9:25 am


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