08:50AM | 07/29/04
Member Since: 02/18/04
2 lifetime posts
My builder went to make the third of four draws yesterday and is already over the final amount! The problem here is that on everything that we knew about, we were only on course to be about $10,000 over. We always looked at our allowances when we had a choice to make (for things like flooring, doors, paint, lights, etc). But after requesting a detailed account of his cost, we found that we were $47,000 over on excavating and $38,000 over on lumber! We also look like we will be $6000 over on labor and about $5000 over on drywall (also over on a few other areas). Now I can kind of understand not knowing about the overages on labor and maybe the drywall, because they are not done yet. But the excavating and lumber have been known about for a while, with no mention. At this point, we are looking at being 44% over budget! At this point, I am very worried, because unless there is a mess up in the numbers, we just built a house for someone else. And frankly, I'm not sure if we could sell it for what we look like we will have in it. Any thoughts?


01:28PM | 07/29/04
Member Since: 06/06/03
1250 lifetime posts
Hello skihard,

Interesting question....I'm sure this not all that unusual. I also wonder--being that far over budget, if you'd even qualify for a mortgage on it (or, assuming you could--if you'd WANT it). You're right; sounds like he might've built a place for someone else...

I have forwarded the URL for this thread over to the moderator of the Real Estate Forum. Hopefully he'll respond....but in case you don't hear anything here, you might consider also posting in that Forum. Perhaps a Real Estate pro will respond...

Good luck; hope this turns out for the best.


-k2 in CO

Moderator, Miscellaneous Forum


01:42PM | 07/29/04
Member Since: 07/01/03
558 lifetime posts
Your contract is an enforceable instrument that should be preventing over-draws or over budget unless you approve changes. You need to have your contract reviewed by your attorney quickly to find out what was agreed to and what protections you have against unauthorized changes or budgetary increases. The contractor has a responsibiltiy to provide a reasonable estimate of costs before construction begins. Typical over-runs are in the neighborhood of 12%. What happened that excavation (concrete?) would go almost 50K over budget. A contractor needs to fight and scrap for savings and provide you a full accounting of the reasons his bid is wrong, and obtain authorization for the change before he commits to it. If that was not done, this is just negligence.

You need an attorney to advise you on how to approach this contractor, and how to protect yourself against liens should you enforce the contract. Do not release payment until you have had an opportunity to consult your legal counsel. If I was a cynic, I'd say this guy is setting you up to skip town. $5000 is enough for 20,000 square feet of drywall materials. $47,000 sounds like 100% of an excavating subcontract. Assuming you had a written contract, the general contractor was liable to enforce the subcontractors to maintain their bids. Any payment exceeding the agreed amount without prior WRITTEN approval by you should be his cost. This project is in danger of not being completed.


01:51PM | 07/29/04
Member Since: 06/06/03
1250 lifetime posts
Hello Tom, thanks for your input on this one! Actually I wanted to send you the thread (as well as to rmurray) but I wasn't totally sure of your email address. But heck, you're on top of it!


-k2 in CO

Moderator, Miscellaneous Forum


Post a reply as Anonymous

Photo must be in JPG, GIF or PNG format and less than 5MB.


type the code from the image


Post_new_button or Login_button

This garden shed has been decked out to the nines. Designer Orla Kiely created the intimate home for a flower trade show, ... Built on a rocky island in the Drina River, near the town of Bajina Basta, Serbia, this wooden house was cobbled together ... Large steel-framed windows flood the interior of this remodeled Michigan barn with daylight. The owners hired Northworks A... Edging formed with upside-down wine bottles is a refreshing change. Cleverly and artistically involving recycled materials... A Washington State couple called on BC&J Architects to transform their 400-square-foot boathouse into a hub for family bea... Similar to the elevated utensil concept, hanging your pots and pans from a ceiling-mounted rack keeps them nearby and easy... For windows, doors, and mirrors that could use a little definition, the Naples Etched Glass Border adds a decorative flora... The thyme growing between these stepping stones adds a heady fragrance to strolls along this lush, low-maintenance garden ... Decoupage is an easy way to add any paper design to your switch plate, whether it is wallpaper, scrapbook paper, book page... Twine lanterns add pops of crafty—but sophisticated—flair to any outdoor setting. Wrap glue-soaked twine around a balloon ... When securely fastened to a tree or the ceiling of a porch, a pallet and some cushioning make the ideal place to lounge. V... Reluctant to throw away any of those unidentified keys in your junk drawer? Hang them from a few chains attached to a simp... A stripped-down model, sans screened porch, starts out at $79,000. Add the porch, a heated floor for the bath, and all the... Salvaged boards in varying widths and colors make up the dramatic accent wall in this attic space. The high-gloss white of... Need a window and a door in a tight space? A Dutch door with a window may be your answer. These useful doors are split hor...
Newsletter_icon Google_plus Facebook Twitter Pinterest Youtube Rss_icon