100% plus increase in builder's estimated prices - help!

riar

New Member
Sep 11, 2013
3
0
0
Hi

I hope someone can provide some guidance. We are having renovation work done and part of the way through the work our builder informed us that he had made an error in his estimating and his prices were increasing in excess of 120%. In fact one component of the work that had already been completed has increased 124%. The revised estimate for the new prices is on a 'like for like' basis and I do not see how I can be responsible for paying for work that I had assumed one price on only to have it increase by 124%. The other work has not been started and therefore we are cancelling. The estimated prices are in writing and although the letter is entitled estimate he clearly states his price for the work - on this basis we accepted the work. Any guidance re payment please - thx
 

Witch consumer

Moderator
Sep 8, 2008
1,593
3
0
Debtors retreat
Sadly that's the difference between an estimate and a quotation, they are under no obligation to stick to prices they have only estimated, did you only get the one estimate or do you have sojething to compare it with.
 

riar

New Member
Sep 11, 2013
3
0
0
Hi

Thank you for your response.

I spoke the Consumer Direct as the builder was coming to the house later, they were quite helpful and offered the following advice;

1. As you state there is a difference between an estimate and a quote - although neither really have a legal definition and only a judge can decide whether a estimate is more like a quote. It appears to be a grey area legally and this is what causes all the problems.

2. As the contract to proceed with the work was agreed at my property and I wasn't provided with my cancellation rights the contract is unenforceable and I don't have to pay anything - if I choose not to. Under Doorstep Selling legislation

3. Under the Supply of Goods and Services Act 1982 a provider/business should take due care and skill when carrying out their trade/profession and this can also be applied to the estimating costs for the job. On the basis that he freely admitted it was his error and not due to escalating costs.

4. Under the same legislation - any service should be carried out to a reasonable price. The price he estimated was within the price range that I had been given online - at the top end but within the margin. However the escalated price bears no resemblance to the work carried out and is excessive.

I was not comfortable with option 2 as the builder's work is good it is just the price escalation that I am disputing. I will go with option 2 and keep option 3 up my sleeve if he does not agree to reduce his price.

There is also the Unfair contract legislation as he failed to supply a correct estimate at the time of entering into the contract to supply his service and therefore I was denied the opportunity to make an informed choice.

I have spoken to the builder and written to him - currently awaiting a response. I have also cancelled the rest of the building work due to the spiraling costs.

I thought that I had done everything correctly - researched the work to be done, got ball park figures, got verbal work references but unfortunately you still get side swiped by the unexpected.

I had even given him the opportunity to discuss the prices before he started on the piece of work in question.

Will let you know the outcome.

As an aside I do think that legislation should be enacted to clearly define an estimate/ quote/ fixed price so that both the consumer and service provider are clear on the terms of engagement.
 

Witch consumer

Moderator
Sep 8, 2008
1,593
3
0
Debtors retreat
If you are happy with the work and it is just the cost you are disputing I think you can reasonably offer him the estimated cost for the job or giving him the option of settling in the Small Claims Court, the reason I asked if you had other quotes is that they could strengthen your case. Guessing he's had some work cancelled or got a bail he can't pay and is expecting you to make up the shortfall!
 

riar

New Member
Sep 11, 2013
3
0
0
Thank you for your response.

I always want to be reasonable with people and I don't like to see people 'out of pocket'. I am hoping that we can agree a price without things getting difficult.

All I can say is that I am very glad that we started on the small renovation works before the major works. For the extension I am going to employ an architect/project manager and get full specification quotes for all works to be completed
 

davidharvey

New Member
Jul 27, 2021
19
0
1
i hope there is someone who can give me advice, our builder hasn't contacted us for 14 days, his phone is off and not answering our messages, we found out where he lives and left a message. Can we call the police if he doesn't call? we are worried because he was paid to finish the job and has used up most of our savings.
 

JosephMontgomery

New Member
Aug 1, 2021
12
0
1
I believe that everything related to the repair can be interesting and exciting if properly prepared for the repair. After all, changes are coming in the house, after the repair of the rooms they look clean and it seems that you have a new home. Thanks to the timber merchants I bought from mgnbm.co.uk, my home has been made perfect like never before, the wooden elements have given a very unusual and beautiful look.
 

Brockkem

New Member
May 7, 2022
1
0
1
e 2 visa process
e 2 visa extension
e-2 visa cost mexico
e-2 visa business for sale
e 2 visa business plan
e-2 visa saudi arabia
e-2 visa processing time canada
e-2 visa lawyer

 

HTJake

New Member
May 17, 2022
1
0
1
 

VCJason

New Member
May 18, 2022
1
0
1