Contractor that raise agreed price after taking deposit.

Contractor that raise agreed price after taking deposit.

Rental Property Investor · Wayland, MA · Member since 2020 · 55 posts · 18 votes

I have a roofer that realized that he underestimated the scope of a roof replacement after he accepted my deposit and now he is asking for more money. Even with the additional money he is asking for, his price is still lower than other bids. His original quote was $8.7K versus another roofer at $10.9K and $15K from the roofer my PM uses. I spoke to 3 of the roofer's prior customers, whom were happy with the work. The roofer also don't have much online reviews and said they need my referral and therefore is very incentivized to do a good job. After submitting 50% deposit so the roofer could purchase the materials, he found heavier slate shingles beneath the architectural shingles. He said that the dumpster company will charge him more for the heavier weight and the tarp he will be using to protect the side of the house will be torn from the slate, and therefore he needs an additional $1.5K. I felt bad for the guy because according to what my PM got from other roofers, it is likely that he isn't making much money at the $8.7K. I agreed to the additional money, but only after the job is completed. Was that the right move? 

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
6y

Change orders are common

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    If you already agreed to it, that is your choice.  If he's an experienced roofer and he actually looked at your house (ie didn't quote it from an image on google maps-don't laugh I heard of some that do that), he should have known.  You're smart to wait until it is done to pay him the rest...I hope you have a timeline for completion.

  • Miami · Member since 2020 · 46 posts · 17 votes
    6y

    @Charles Situ

    Contractor’s proposals are budget estimates. I’m ok with the price changing if there is a reasonable explanation. In this scenario, there was something hidden that wasn’t accounted for. It happens. And it seems you’re still getting a good price and has a good track record.

    If the scenario was that they admit to poorly estimating the job, then I’d guess they deliberately low balled it to get the job. That would rub me the wrong way.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    Change orders are common

  • Rental Property Investor · Wayland, MA · Member since 2020 · 55 posts · 18 votes
    6y

    @Theresa Harris. Not laughing. I actually had one other bid I didnt mentioned where the roofer only looked at the roof from Google Eagle Eye and said $6K in less than an hour.

  • Roanoke, VA · Member since 2014 · 404 posts · 203 votes
    6y

    @Charles Situ he “found slate shingles beneath the architectural shingles?” Something smells fishy here.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    @Charles Situ

    Yes. The scope of work increased. Makes perfect sense.

  • Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    The tarp part is hysterical. I'd be surprised if he couldn't sell the slate somewhere unless its completely shot.

  • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    6y

    @Charles Situ As others stated change orders happen and are a fairly common event in construction BUT did you verify the site condition change? Because what is also common is persons low balling bids to get them, and then using a series of change orders to press the price back up to what they really meant to bill the whole time. This is just 1 of many reasons to NOT use just the $ as the selection method of what bid to accept. 

  • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    6y

    @Charles Situ and slate tile under asphalt makes 0 sense what so ever, FYI. 

  • Investor · Cincinnati, OH · Member since 2008 · 319 posts · 243 votes
    6y

    I would verify that it actually has slate.

    The slate can often be removed by a company specializing in slate for free, or they will pay for the material if it is removed properly. 

  • Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
    6y

    @Jon H.

    Wrong. Contractors Bids are Binding. If you sign the contract then they didn’t exclude it then they’re on the hook. They wouldn’t be giving you money back if the job went easier or faster than expected.

  • Investor · NJ · Member since 2018 · 869 posts · 921 votes
    6y

    As others have stated, change orders are super common when the scope of work changes in a contract. Maybe the guy underbid and didn't know any better. Probably new in business or not very business savvy.

    Experienced local contractors that work in a particular area frequently generally know how to bid more accurately and know more about what's involved in a particular neighborhood vs the guy who's traveling 45 minutes to do your job. 

    That's why in my opinion it's always better to go with the local/experienced middle of the road price guy when getting quotes and not just the cheapest. There should be more metrics measured vs just price alone. 

    Also usually when the cheapest quote screws up a job, usually the middle of the road guy will want nothing to do with the job at that point because they'll know you were just price shopping initially. 

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