ᐅ General contractor’s estimate vs. final invoice – a nightmare

Hi everyone,

I’d like to ask for your advice because my general contractor (GC) is really testing my patience—and my budget 🙂

After the price lock period ended, the GC submitted a change order with significant, partly understandable, cost increases.
OK, under pressure, we agreed to a 15% extra cost.
Then, shortly before the start of the excavation work, we were informed that additional excavation was necessary based on the soil survey report.
OK, the wound was still fresh, so we agreed to an additional 14,000 € (about 15,500 USD).
And now we have the problem:
The offer is basically structured as follows:

Item 1) 100 m³ (130 cubic yards) of foundation cushion fill with MG FS 0/45 as a base for the construction of the terrace, at a price of €59.60 (about $65) per m³ = €5,960 (about $6,500)
Item 2) 50 m³ (65 cubic yards) of foundation cushion fill with MG FS 0/45 as a base for the construction of the driveway, at a price of €59.60 (about $65) per m³ = €2,980 (about $3,250)
and so on, each with the note: Billing based on weighbridge tickets at 2t/m³ (2 tons per cubic meter)

However, in the invoice, he charges:

Item 1) 115 m³ (150 cubic yards) × €59.60
Item 2) 60 m³ (78 cubic yards) × €59.60
and refers to the fact that more material was delivered, which is also reflected in the weighbridge tickets.
So, he ultimately dug deeper and wider, used more material, and charges me accordingly.

Since this way of making money rubs me the wrong way, I have of course disputed the invoice.
In my opinion, it is the GC’s responsibility to perform a proper measurement and then submit an offer accordingly.
Alternatively, he could provide a quote for supplying the frost protection layer on a “per ton” basis.
Of course, the note is included, but to me, there are too many variables in this offer.
Basically, he can now calculate whatever he likes, no matter how much he actually installs.

What is your opinion on this case?
Am I mistaken here? Do I have to accept this?

Thanks in advance for your feedback.
Best regards,
x

To me, this all sounds completely accurate:
1) he has strictly adhered to his unit price
2) he is not responsible for the increase based on the expert's recommendation
3) the weighing slip is a reliable basis for billing; he is also not responsible for the volume loss due to settlement and compaction.

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I see this somewhat differently than @11ant. Usually, it is the contractor who has significantly more experience in their field—and therefore a high duty of care.

• The phrase "billing based on weigh tickets" is not an obvious indication of potential additional costs for a layperson. It could also mean that the contractor is proving with weigh tickets that they delivered the quantity that was offered and ordered.
• I am not clear what kind of "volume shrinkage" is supposed to have occurred here. The original poster writes that excavation was done too deep (or did I misunderstand that?).
• Regardless of the cause, an experienced contractor should present their offer clearly enough so that no client is later surprised by the costs—for example, by explicitly stating that costs may increase by a certain percentage due to "volume shrinkage" or other factors. The client usually experiences this for the first time, while the contractor has seen it many times before.

I have no idea whether anything can be done about this legally. However, I would not recommend such a contractor.

Hello, excavation work always tends to spark discussions. What does your general contractor say?

I would like to understand why the fixed price period (12 months?) has expired. The fixed price should apply starting from the first groundbreaking, meaning when the earthworks begin. Did you have such a long planning phase? Because that is probably where the major portion of the costs is buried.

Hello

Here is some additional information:

Price fixation: Our building contract specified a price fixation period of 12 months, provided that the building permit / planning permission was obtained within those 12 months. Unfortunately, we were not able to meet that condition. We accepted this.

After the soil survey, additional foundation work was required. Of course, this was not his fault, so we accepted it. The general contractor provided a corresponding quote as described above, and we placed an order.

To my understanding, he is responsible only for the quantities determined in the quote based on the survey. If more material is used later because they continue to dig deeper and wider, I don’t understand why I should be charged for that.

This is not an estimate, but a formal offer, right?

Regards
x