Unauthorised Variations in contract and un-quoted works

[wibbit]

Good afternoon all.

I was hoping for some advice, we're in the process of getting an extension built (significant build attached to house), and are coming to the final stages.

This work was originally contractually agreed to take around 10 weeks, we are now 6 months in, though the delay is unacceptable and has put massive strains on our lives at home, our biggest concern is the sudden influx in variations that we've neither been quoted for, nor agreed to.

Numerous interim invoices were submitted to us that cover the times that some of this work must have been carried out, however we received no notification, though the original interim costs DID specify variations.

At the beginning of the build we told the builder that our finances were tight, and that we could not afford variations.

Most of the variations carried out, if we'd have been given notice of the extra costs we would have done it our selves without thinking twice, and based on the duration of the build, notice certainly could have been given.

What are our liabilities?

We've shown significant levels of good faith (in my opinion) including paying for an error on his quote where they missed zero resulting in a mid 3 digit sum becoming a mid 4 digit sum, and paying an erroneous invoice allowing him to "amend" the next invoice, which was never done.

 

[noseall]

our biggest concern is the sudden influx in variations that we've neither been quoted for, nor agreed to.

Numerous interim invoices were submitted to us that cover the times that some of this work must have been carried out, however we received no notification, though the original interim costs DID specify variations.

The dreaded extras eh?

Some builders will put in a low quote in order to 'snare' a customer, only to later on hit the job with all the extras they can muster.

This can be compounded by first submitting an ambiguously worded quote, then by taking large sums of money from the customer early on thus holding them to ransom.

Dastardly deeds.

However, i have rarely completed an extension without having to bill for extras. BUT, all extra works are discussed and agreed to prior to work being carried out and either a price given or a fixed hourly rate.

 

[lostinfens]

You use the term "variations" not extras, is this because these items were not deemed necessary by you or the BI, but at the builders behest?
Did you agree to them?
Any work of any kind may be subject to unforseeable deviation from the initial contract and for numerous reasons. Were there any problems which arose that could be described as such? And did you at any time clearly explain to your builder that you were willing and able to carry out the work required?

 

[wibbit]

our biggest concern is the sudden influx in variations that we've neither been quoted for, nor agreed to.

Numerous interim invoices were submitted to us that cover the times that some of this work must have been carried out, however we received no notification, though the original interim costs DID specify variations.

The dreaded extras eh?

Some builders will put in a low quote in order to 'snare' a customer, only to later on hit the job with all the extras they can muster.

This can be compounded by first submitting an ambiguously worded quote, then by taking large sums of money from the customer early on thus holding them to ransom.

Dastardly deeds.

However, i have rarely completed an extension without having to bill for extras. BUT, all extra works are discussed and agreed to prior to work being carried out and either a price given or a fixed hourly rate.

I don't know if the builder purposefully under-quoted, and he didn't over charge at the begining to hold us hostage either, if any thing we were in a position to hold him hostage at the end, however that's not what I want to do, work has been done to a reasonable standard, and I would not consider not paying for the work agreed upon it. My issue is paying for work that was neither agreed nor quoted, AND I know quite a few of the times have been significantly over charged.

 

[wibbit]

You use the term "variations" not extras, is this because these items were not deemed necessary by you or the BI, but at the builders behest?
Did you agree to them?

It's because it's the term used by the builder.
Some variations were due to over site on the draughtsman/structural engineer, which were not quoted but we were for warned.
Many other variations were due to over sight on the builders part (or his sub contractors), some were needed (but didn't have to be done by them), some were not needed at all.

We went in to this planning for around the 10% mark for unforeseen issues, not the 20% mark.

Any work of any kind may be subject to unforeseeable deviation from the initial contract and for numerous reasons. Were there any problems which arose that could be described as such?

Yup, and those costs we are not questioning, we don't expect them to have a crytal ball, start digging and find that the water level is much higher than expected or the soil structure is different to what is expected, can result in greater costs, or any number of things.
But even under those circumstances, i would not expect a build to spend our money on changes with out any discussion, or providing an estimate.

(e.g. a provisional cost increased 350%, for no visible reason).

 

[^woody^]

You need to determine what extras are related purely to the contracted works - eg alterations for unknowns or at the BCO requests ... such as different foundations, different or more structural supports etc, and extras which are of your or the builders choosing ... eg more lights, a new window, wall or door etc.

Some of these you have no choice in paying for, and if so you need to have a firm basis for valuing the work. If you did not get an hourly or day rate figure as part of the quote, then you need to value extras on cost of materials (plus 10%?) and a typical hour or day rate. Or the builder may give a lump sum figure.

If these extras are due to designer errors or lack of information on the plans (normally due to paying for a cheap plan drawer) then you have the option of chasing them for the extra cost - but you will need suitable proof to prove their negligence

In the forthcoming negotiation, you should counter the claims for more money with your counter-claims for your losses - project time over-run, extra disruption, lack of use of your house, days of work etc.

You then come to an agreed sum.

If you can't agree, then suggest going to a third-party for arbitration or checking of the value of the extra work claim

Bottom line is that you only have to pay for the agreed contract sum plus valid extras - which would be expected to have been pre-notified to you (and priced) before carrying them out, unless they were immediately necessary to allow the work to continue without delay

 

[wibbit]

Bottom line is that you only have to pay for the agreed contract sum plus valid extras - which would be expected to have been pre-notified to you (and priced) before carrying them out, unless they were immediately necessary to allow the work to continue without delay

I suppose the question there is, what are "valid extras", some of them i see as valid extra's and I believe it would be impractical to get a third party in to do the work (or am unable to do them my self).
But many others in my mind are not, no work was so urgent that a phone call could not be made, and quote obtained.

 

[lostinfens]

Any extras reasonably charged for necessary work which could not realistically be foreseen, eg: groundwork must form a part of the contract and be paid for as such. Any oversight by the builder should not be, that is his fault and his responsibility. You mention sub-contractors, were these employed as the term suggests by the builder? If so then the issue of their pricing inaccuracy is between builder & subbie and not you.
I don't understand how some work was not needed yet charged for.

You are entitled to question a p.c. cost and your builder is obliged to explain it. It is fair to expect that your builder would consult you before changing the scope of the contract, but there are some circumstances when that is just not practical, particularly during groundwork.
I understand your dismay at a 20% increase it is considerable, but not unheard of.
Do you think that your builder is dishonest or just a bit slipshod in his accounting?

 

[wibbit]

Any extras reasonably charged for necessary work which could not realistically be foreseen, eg: groundwork must form a part of the contract and be paid for as such. Any oversight by the builder should not be, that is his fault and his responsibility. You mention sub-contractors, were these employed as the term suggests by the builder? If so then the issue of their pricing inaccuracy is between builder & subbie and not you.
I don't understand how some work was not needed yet charged for.

These were indeed employed by the builder and not us (obviously, if it was us, it would be our problem).

I am glad that a 3rd party (I believe you're a professional tradesperson?) also believes that any thing that could be reasonably foreseen is the responsibility of the builder.

He is, I feel hiding behind the argument "you had a very detailed quote if you knew there were any issues, you should have raised them". The problem is, I don't believe I can be expected to know all the particulars of a build, or what is included in a particular subsection or not. That is the whole point of employing a builder/specialist to do it for us, to be able to rely on their expertise and experiencj.

You are entitled to question a p.c. cost and your builder is obliged to explain it. It is fair to expect that your builder would consult you before changing the scope of the contract, but there are some circumstances when that is just not practical, particularly during groundwork.
I understand your dismay at a 20% increase it is considerable, but not unheard of.
Do you think that your builder is dishonest or just a bit slipshod in his accounting?

I would like to think that it was not an issue of honesty, however for all of these additional charges to have been left un-noted any where until the last bill payment is just incredibly suspect, especially as the first 4 weeks, we did see a couple of variations and requested additional work to be quoted for.
He started work prior to quoting, on receiving the quote, we informed him we couldn't justify that cost, and and to perform no more work, however payed him for the work done to date. At the same point in time we told him that we were very tight on our budget and had to keep control of the costs.
After that, no more notification was given of additional charges being a crewed, until the the end.

I believe the problem is compounded by the significant over run of 3 months, and the builder is now trying to minimise his losses.

 

[lostinfens]

I'm a bit perplexed by these issues which your builder referred to, were there such issues which you knew of ?
Did you actually tell your builder to stop certain operations, and he continued regardless? Why should he do that? Was it bad communication or were there other reasons?
You seem to think that he is an honest person regardless, if so then it seems out of character to be charging just to cover his inept pricing.