Piedmont Personal Builders

"We regret having had a misunderstanding with this customer. We accept blame for the misunderstanding because we assume that we must have failed to clearly explain the cost of extras that the homeowner added to this project. The contract for this work consisted of two parts: A fixed-price portion that does not change unless the customer adds something that was not in the original contract or upgrades something that was not in the original contract. Occasionally, this includes a price for something that we have to estimate because we do not have final figures. This is usually noted in the agreement. Any changes normally require a signed change order. The fixed portion of the agreement was for $51,127. However there was a note under the electrical estimate that said: "Note. ESTIMATE. Subject to revision upon receipt of actual quote from electrical subcontractor." This was because we did not yet have the bid from our electrician at the time of contract; so we had to estimate it, and we wanted the homeowner to be aware that it might change. There is also a variable portion that comes into account when we are dealing with unknown costs, such as site improvements. We normally make estimates for such things and create an Allowance for these items that we think will cover the cost. This is typically things like clearing, grading, driveways, walks, fill dirt, and so forth. Any changes normally require a signed change order. The variable portion of the agreement was for $350 for 1 load of dirt and some gravel to dress up the existing gravel driveway in front of the carport. Therefore, the original contract was for $51,477. We have signed Change Order agreements in our file for $5,040 in extras that were add after the original agreement as follows: - $775 of this was for the electrical work coming in above the original estimate. - $435 of this was for additional electrical work that the homeowner requested from the electrician that was not in the original agreement. (Hanging fans, working on existing outlets and switches.) - A credit of ($260) for Lead-Based paint costs due to no lead-based paint being found. - A credit for ($200) due to no interior paint touch up being required. - A charge of $1,650 for painting all of the roof overhangs and exterior boxing on the original home. This item was not in the original agreement. - A charge of $1,350 for staining the screened Porch. This item was not in the original agreement. - A $240 upgrade charge for switching the soffit from a standard, stocked color to a special-order color. This item was not in the original agreement. - A $1,050 increase in the actual cost site improvement allowances. This was because we underestimated the cost for fill dirt and gravel by $125. In addition, there were several items that were not in the original agreement that totaled an additional $925, including cutting down trees, 4 tons of rip-rap, removing a grass strip from the driveway and placing gravel over that area, and placing new pea gravel to dress up the existing gravel beds under the porch and decks. So the total consideration was for $56,517. But we did not just arbitrarily increase the price. Over 90% of the increase in cost was for additional items and upgrades added by the homeowner after contract. The remaining items were for defined variable items coming out above estimate, some due to changes in the scope of the work. In hindsight, instead of just adding the items that the homeowner told us to do as we went along, we should have probably insisted on giving him an exact price before going forward with the requested changes. We enjoyed very much working with this homeowner and felt that we did a good job for them and had a good relationship until the confusion over the extra costs arose at the end. We have apologized several times, both in person and in writing."