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Rehabbing & House Flipping

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Andre Brasser
  • Baltimore, MD
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15
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Contractor Overages

Andre Brasser
  • Baltimore, MD
Posted Aug 26 2016, 11:23

Hi All,

Where is the line between an overage the investor is responsible for vs the contractor. The house is a full gut job and was assumed that nothing would be usable or salvageable. One line item in the scope of work was full demolition. The contractor says that demolition has taken longer than expected and therefore labor costs are higher. I believe this is a cost he should be eating since this was part of the bid/scope of work. On the other hand, we had to fix part of the foundation (unexpectedly) so I'm fine with paying that cost. Am I wrong to make a distinction between these two costs? 

Thanks,

Andre

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