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Building work - escalation in costs - advice sought


Golactico
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Grateful for any informed opinion on this scenario.

  • Quotation accepted for a domestic building project that includes the provision of lighting and power points.
  • Contractual document detailing agreed price and detailed scope of work (including electrics) is signed by both the contractor and customer.
  • Work commences at the agreed time a few months later. At the point that the basic structure is in place, the contractor advises that having only just made a detailed assessment of the necessary electrical work, it isn't possible to use the existing house electrics infrastructure (as had initially been assumed at the time of quote and contract agreement) and the additional work required will incur an additional cost to the customer of £1K.

Is the customer obliged to just cough up, or are they entitled to say 'no - you did an assessment and offered a list of work at a price that has been contractually agreed. The fact that you failed to carry out a proper initial assessment of the cost of the electrical work is of no concern of mine and I will only pay the price offered and agreed in the contract.'

Thanks in advance for any useful opinion.

 

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51 minutes ago, Golactico said:

Grateful for any informed opinion on this scenario.

  • Quotation accepted for a domestic building project that includes the provision of lighting and power points.
  • Contractual document detailing agreed price and detailed scope of work (including electrics) is signed by both the contractor and customer.
  • Work commences at the agreed time a few months later. At the point that the basic structure is in place, the contractor advises that having only just made a detailed assessment of the necessary electrical work, it isn't possible to use the existing house electrics infrastructure (as had initially been assumed at the time of quote and contract agreement) and the additional work required will incur an additional cost to the customer of £1K.

Is the customer obliged to just cough up, or are they entitled to say 'no - you did an assessment and offered a list of work at a price that has been contractually agreed. The fact that you failed to carry out a proper initial assessment of the cost of the electrical work is of no concern of mine and I will only pay the price offered and agreed in the contract.'

Thanks in advance for any useful opinion.

 

Without seeing the contract it is impossible to say.

I would assume that the contract has a clause about unforeseen circumstances or some such...

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I had a similar situation when we had an extension built. Long story short, when the work started the foundations needed specialist work attaching it to the concrete raft the house was built on. Despite being assured a single storey extension wouldn’t need that, and the building inspector had signed it off, when the work started it became obvious it was needed. The extra cost was 2.5k and there was a lot of debate about who paid that. In the end we settled for 50/50, between us & builders, so it maybe worth trying that. One thing for sure, you don’t want pissed off builders working for you. 

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6 hours ago, Golactico said:

Grateful for any informed opinion on this scenario.

  • Quotation accepted for a domestic building project that includes the provision of lighting and power points.
  • Contractual document detailing agreed price and detailed scope of work (including electrics) is signed by both the contractor and customer.
  • Work commences at the agreed time a few months later. At the point that the basic structure is in place, the contractor advises that having only just made a detailed assessment of the necessary electrical work, it isn't possible to use the existing house electrics infrastructure (as had initially been assumed at the time of quote and contract agreement) and the additional work required will incur an additional cost to the customer of £1K.

Is the customer obliged to just cough up, or are they entitled to say 'no - you did an assessment and offered a list of work at a price that has been contractually agreed. The fact that you failed to carry out a proper initial assessment of the cost of the electrical work is of no concern of mine and I will only pay the price offered and agreed in the contract.'

Thanks in advance for any useful opinion.

 

That’s very naughty of them. Name and shame is an option. These people rely upon having a good reputation.

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My take on it is that you are liable to the full costs, especially if the price was qualified on the current electrics being used or on a further inspection of the electrics.

If the electrics have to be upgraded, then you are getting something for your money.

It's good that you have a contract in place, most domestic clients don't bother. And it's good that your builder is wanting to do a proper job.

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Another variable is the age of your property. Whilst post-war properties are more sturdily constructed from experience, sometimes there are some nasty surprises where some of the prior or original work is not so easily visible. Quotes are estimates based on what is more readily visible but sometimes a more detailed investigation or exploration when work is due to start to start can and does throw a few curve balls.

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