I'm currently helping my elderly mother with a big renovation that's almost done, with just a few things left like painting touch-ups, installing lighting and fans, and the final inspections. However, out of nowhere, the contractor sent a change order asking for an additional 20% ($23,000) due to things like inflation and higher material costs. We told him we don't agree to this change, as it seems unreasonable. Now, he's threatening to 'demobilize' the project, which means he'll take all his tools and equipment. There's nothing in our contract about demobilization or termination of the contract. We have paid him everything except for the 25% left due at completion, so we owe him around $29k. If he goes through with this demobilization, does that terminate our contract? Would we still owe him that $29k? I'm planning to talk to an attorney soon, but I'd appreciate any advice in the meantime.
3 Answers
You might want to send him a polite email asking to confirm his intent to abandon the project and breach the contract. That way, you have everything documented if you need to take further steps.
It sounds like you're in a bit of a tough spot. It's generally a good idea to hold back a portion of the payment until everything is completed. This contractor seems to be acting out of greed, so definitely consulting with an attorney is a smart move. Keep all your communications in writing to protect yourself.
He seems to be trying to squeeze more money out of this project since he underbid it. If there's no clause in your contract about changes after the work has started, he likely doesn't have the right to demand more. But remember, I’m not a lawyer—definitely get legal advice. Just make sure you communicate everything in writing!
Yeah, and the whole idea of him citing unexpected permit costs at this stage doesn’t hold water. He should’ve brought that up much earlier if it was a real issue. Good luck with the lawyer!
You're right—he likely has no basis to demand anything more if the contract doesn't allow for increases. Stay firm and don’t pay anything until you have clarity from a lawyer.