ᐅ General contractor’s estimate vs. final invoice – a nightmare
Created on: 8 Dec 2021 21:41
W
Wurzelxquadrat
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
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
Wurzelxquadrat schrieb:
By now, he even calculates it nicely in a new invoice by changing the units from m³ to tons. I find that unfortunate and regrettable if my explanation was still not enough for you to understand the billing in tons.
Wurzelxquadrat schrieb:
I requested a quote for the additional foundation work that was required according to the soil report.
I then placed the order.
NOBODY requested digging deeper or wider. Apparently, the subcontractor of the main contractor considered that necessary on his own, and now the main contractor is charging me for it. What exactly do you mean by "additional foundation work" if neither an increase in the footprint nor in the depth of the foundation slab was required?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Wurzelxquadrat schrieb:
NOBODY requested digging deeper or wider. Apparently, the subcontractor of the general contractor (GC) considered it necessary on their own, and now the GC is charging me for it.
Have you asked what caused the excavation to be deeper and wider than originally ordered?
As far as I understand, the first two price increases didn’t happen because the GC made a mistake. One was a price increase after the fixed pricing period expired, and the other was additional civil engineering work following the geotechnical survey. That’s precisely why it’s advisable to carry out the geotechnical survey beforehand.
Accordingly, in my opinion, this is probably the first time you’re facing an invoice that doesn’t match the original quote. I can completely understand your frustration, but this concerns about 15 m³ (20 cubic yards) plus 10 m³ (13 cubic yards) more than planned, which should amount to roughly 1500 €.
We are also in the middle of building a house, and I can tell you this likely won’t be the first or last time an invoice turns out differently than expected. I also often insist on things that from my perspective simply don’t seem right. BUT, I’m not sure if I would continue to pursue my principles for a relatively small amount and risk annoying the contractor.
From my experience, it’s always a matter of give and take—if you “forgive” a possible mistake by the builder, they might forgive you for a (planning) error and possibly accommodate requests during construction that weren’t planned originally and could have been more expensive.
At least, that has been my experience so far. 🙂