Legal Question in Construction Law in Minnesota
building contractor
Remodeling job done for time and materials. Add ons and changes to these two large additions and remodeling came to over $80,000.00. That is over and above the estimated job. The customer was aware at the time and ok'd the extras and changes, knowing they would be additional expenses. The customer is a lawyer in a big firm in the city. He paid the estimated amount and has now refused to pay extras. He knows he can cheat us and get away with it because he is a lawyer in a large firm. We are a small business and our attourney told us this could be held up in courts for years by the customer and it was not affordable for us to fight even though we have all documentation. We are partners in our small business and stand to lose our home if we don't get paid. This was our big job of the year last year and what the customer paid went to employees and sub contractors, leaving our own income to last. What can we do. I have exhausted my savings in waiting for months to get paid.
2 Answers from Attorneys
Re: building contractor
Ouch. As if lawyers didn't already have a bad name. Hard to answer without knowing more. This customer undoubtedly knows how to game the system. But possibly you have some ability to recover; a lot depends on the facts. It's too much $ to just walk away from without looking at it carefully. Some questions/comments:
1. Did you provide pre-lien notice?
2. If yes, have you done any work within the last 120 days?
3. If no, at least in the event you sue him and get a judgment, your judgment lien will still go against the homestead and he won't be able to claim the homestead exemption with respect to the judgment.
4. Was there a written contract?
5. What did it say about change orders?
6. If there was a written CO requirement, did you get the COs signed?
7. If not, what evidence do you have that the extras were approved?
These are the kinds of very intensely factual questions that will need to be answered before a lawyer could give a reasonable opinion on your chances of success.
Your lawyer is probably right, the homeowner could stretch this out in the courts and it will cost some significant $ to chase. It is not the kind of case an experienced construction lawyer would take on a contingent fee basis, unfortunately.
I'll be happy to discuss further, but will be out of the country on business through April 7. We can communicate by e-mail, though, to discuss generally.
Standard disclaimer: The above is given based on limited facts and information presented. Conclusions may differ significantly based on different facts. We do not have an attorney-client relationship.
Re: building contractor
Certainly, modifications of a contract are rather common including add on's as the construction progresses. Each modification should be carefully documented with a new contract or estmate and, ideally, signed off on by the client to ensure that an enforceable contract exists.
If you have documented the add ons and the client's agreement to the changes, you may certainlty recover your fees. The question may be how much you will spend to do so. There is no doubt that litigation can be expensive.
If you served proper prelien notices, you may be able to assert a mechanic's lien on the property which would plce the home owner in the posture of having to sue you to clear title. It puts you in a position of greater strength in order to get paid. That also requires that the last work on the job occurred less than 120 days before the Mechanic's Lien is filed.
If the add ons amount to less than $7500, you may also sue, without a lawyer, in conciliation court which is designed for smaller claims.
For a consultation call 612.240.8005 or visit minnesotalawyers.com
Related Questions & Answers
-
Construction law-roofing contractor I am being taken to small claims court by a... Asked 10/26/07, 3:11 pm in United States Minnesota Construction Law
-
Sub contract work I am an irrigation contrator who did sub work for another... Asked 7/24/07, 2:08 am in United States Minnesota Construction Law