[WSBARP] Construction Contract Question

Douglas Scott doug at rainieradvocates.com
Thu Aug 12 10:46:09 PDT 2021


The contract price is based upon the cost of construction. Be sure to get
all of the invoices and receipts from the contractor which show the
"actual" costs that the contractor incurred.  If the contractor paid
himself and his workers for time spent, then get substantiation for that as
well.

*DOUGLAS W. SCOTT*
Rainier Legal Advocates|LLC

465 Rainier Blvd. N., Suite C
Issaquah, Washington 98027
425.392.8550 (tel)
425.392.2829 (fax)



www.rainieradvocates.com


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On Thu, Aug 12, 2021 at 10:39 AM Peter Crocker <peterecrocker at gmail.com>
wrote:

> I'd think about the duty of good faith and fair dealing, for sure, because
> the contractor had it in his power to control how much it cost. That being
> said, I'd also want to be real sure that PC hadn't agreed to any changes,
> that the scope as completed was consistent with the scope agreed-upon in
> the contract, or that the PC hadn't created any conditions that led to cost
> increases. If the cost increases were due to covid-related issues that OP
> couldn't have known about when preparing the estimate, PC might have to be
> willing to make certain allowances for cost increases, but 5x definitely
> seems excessive.
>
> Sincerely,
> Peter
>
> Law Office of Peter Crocker, PLLC
> 210 Polk St., Ste. 6A
> Port Townsend, WA 98368
> peter at petercrockerlaw.com
> 360-344-8474
>
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> On Thu, Aug 12, 2021 at 9:47 AM Gabriel Dietz <gabrieldietz at gmail.com>
> wrote:
>
>> Yes, the contractor is licensed and bonded.
>>
>> Thank you,
>>
>>
>> Gabriel A. Dietz
>> Partner
>>
>> Hoerschelmann Dietz PLLC
>> (206) 451-3859
>>
>> *gabe at hdpnw.com <gabe at hdpnw.com>*
>>
>> *www.hdpnw.com <http://www.hdpnw.com/>*
>>
>>
>>
>> On Thu, Aug 12, 2021 at 8:19 AM Kary Krismer <Krismer at comcast.net> wrote:
>>
>>> Have you checked to see if the contractor is licensed and bonded.
>>> Unless something has changed since I stopped practicing, that's a very good
>>> defense.
>>>
>>> Kary L. Krismer
>>> 206 723-2148
>>>
>>> On 8/12/2021 7:45 AM, Gabriel Dietz wrote:
>>>
>>> Good Morning Listmates,
>>>
>>>
>>> This is a somewhat new situation to me but may be routine practice for
>>> some of you. Potential client, a single family residence owner, signed a
>>> cost plus construction contract for a contractor to do a relatively small
>>> job. The contract had an estimated price written in. Contractor's invoice
>>> was five times the estimate. During the job there were some discussions
>>> between contractor and PC about change in means but never any discussions
>>> about an increase in price. What defenses, if any, does PC have?
>>>
>>> Thank you in advance,
>>>
>>>
>>> Gabriel A. Dietz
>>> Partner
>>>
>>> Hoerschelmann Dietz PLLC
>>> (206) 451-3859
>>>
>>> *gabe at hdpnw.com <gabe at hdpnw.com>*
>>>
>>> *www.hdpnw.com <http://www.hdpnw.com/>*
>>>
>>>
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