[WSBARP] Construction Contract Question

[Mark Anderson]

Pay particular attention to the cost of materials.  Lumber prices in particular have risen dramatically since the spring.

Mark B. Anderson
ANDERSON LAW FIRM PLLC
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Tacoma, Washington 98402
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Douglas Scott
Sent: Thursday, August 12, 2021 10:46 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Construction Contract Question

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
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On Thu, Aug 12, 2021 at 10:39 AM Peter Crocker <peterecrocker at gmail.com<mailto: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
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On Thu, Aug 12, 2021 at 9:47 AM Gabriel Dietz <gabrieldietz at gmail.com<mailto: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<mailto: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<mailto: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<mailto:gabe at hdpnw.com>
www.hdpnw.com<http://www.hdpnw.com/>


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