Do we have to pay the extras

DIYFYI

The wife and I are a month away from completion on a 20 week project.

A fortnight ago our builder sent us, unannounced, a spreadsheet listing £10k worth of extras (10% of the contract cost). Some were expected, others decidedly not and for most of the extras there was no record in writing either of us asking for them to be done, the builder quoting for them or either side agreeing on them; because there was confusion over who said what, and what was agreed, the wife and I elected to go half and half with the builder so as to maintain relations.

We strongly made the point that because nothing was in writing and we had not Ok'd any quotes, we didn't feel 'obliged' actually pay for anything, but the work had been carried out and we would pay for half.

Last week we received another spreadsheet with £6k worth of electrical extras - thereby taking the extras bill to 15% of the contract.

Their contract itself states no additional work will be done without written approval from the client, and also (interestingly we think) makes no reference to retention for snagging...it does say that for a period of 12 months the builder will come back to address any 'defects' that may arise.

Basically, we are concerned that if we contest this second extras list more vigorously that we did the first...so, standing our ground and saying that there was never any indication of additional cost for most of the works listed...the builder will either a) walk off site and b) not honour their snagging clause.

We have about £15k left to pay on the quoted contract anyway...and a further 6k for these extras. We do not feel obliged to pay for these extras because we did not authorise them and no actual cost was given prior to the work being carried out. Frankly we feel it s like someone servicing your car and then telling you after the event how much it's going to cost you - that is simply not the way things are done because it leaves you with no choice in the matter.
We did, repeatedly, ask the builder to send us the costs and the builder has attempted to reconcile the electrical extras on a number of different occasions always arriving at different figures.
By way of example: In November we were told the cost of installing 'stair lights' and four wall lights would be £210. I had this confirmed verbally and once in writing. The spread sheet of a week ago quotes the costs of this work at being £700.

Given works are not finished we're worried we'll be shooting ourselves in the foot by not paying this extras bill, but at the same time we are adamant that it is not incumbent upon us to do so.

Rant over - apologies - I would be grateful for anyone's thoughts/experiences in this area.

System

why did the extras occur? were things specified fully when originally priced? Were you asked to confirm any items?
What contract are you using for this job?
Retention amounts are set out in the contract, if they are not there they are not there, you should have checked it before signing..
Can we assume that you have no one acting as a contract administrator in this process?

MisterBaxter

If you are using a standard form of contract then the general rule would be that if works incurring additional costs were not instructed in writing then there is no obligation to pay those additional costs. You can instruct verbally and follow up with a written instruction or if you fail to give the written instruction then the contractor can confirm the instruction by putting it in writing to you; if it goes unchallenged then the instruction becomes part of the contract.

From a practical point of view you should probably ask yourself whether or not the extra costs were unforeseen at the time of pricing the job but were ultimately essential to completing the job. Additional costs in getting out of the ground when building an extension are commonplace for example but they should nonetheless have been formally agreed. If the costs were unforeseen and are reasonable then you may want to think about negotiation.

As 'the_r_sole' states, if there is no provision for retention written into the contract then you can't withhold a retention.

If you stand your ground with the contractor at this stage he could simply walk off site; there would be no provision in the contract for him to do so and as such he would be in breach but your only recourse would be through Court, the same goes for any failure to return to deal with defects. Unfortunately the legal route is potentially long and complex and if the builder isn't financially stable you can still end up with nothing. You are at least in a position of strength as you have money left to pay under the contract.

DIYFYI

There being no provision for a snagging retention in the contract is unnerving, but our own fault and i appreciate there would be no justification for us to withold funds.
But, my concern here is that if we contest this extras bill he will forgo his commitment to the snagging period, which no doubt puts him in breach of contract...but, what can one do!?

I take confidence from both responses re. there being no obligation to pay these 'extras' if nothing was confirmed in writing. We're happy to pay for that which was put in writing, but it is about £4500 of the bill that was unexpected and have no prior quote associated with it that we're fixated on.

Whilst I have your ear:
On plan there were 7 double sockets in the kitchen for appliances...which he priced accordingly. It turns out they were meant to be fuse spurs for kitchen appliances. The builder is charging us for the installation of fuse spurs (without having mentioned them prior to commencing the work) even though sockets were priced into his quote....hence we are contesting he had allowed for the cost of the works in his quote. He never installed the sockets...so what he costed them at offset the cost of the fuse spurs. Is that unreasonable?
Can those spurs be extras if he never installed the sockets he had quoted on?

MisterBaxter

DIYFYI wrote: »

There being no provision for a snagging retention in the contract is unnerving, but our own fault and i appreciate there would be no justification for us to withold funds.
But, my concern here is that if we contest this extras bill he will forgo his commitment to the snagging period, which no doubt puts him in breach of contract...but, what can one do!?

Essentially there is very little you can do if there are issues and the contractor refuses to return to deal with them It would be a case of taking the contractor to Court and hoping that the contractor is still around and has the means to comply with any order made. If you simply try to withhold a retention that isn't allowed for in the contract the you would be in breach and the contractor could take you to Court to get the money owed to him.

I take confidence from both responses re. there being no obligation to pay these 'extras' if nothing was confirmed in writing. We're happy to pay for that which was put in writing, but it is about £4500 of the bill that was unexpected and have no prior quote associated with it that we're fixated on.

Whilst I have your ear:
On plan there were 7 double sockets in the kitchen for appliances...which he priced accordingly. It turns out they were meant to be fuse spurs for kitchen appliances. The builder is charging us for the installation of fuse spurs (without having mentioned them prior to commencing the work) even though sockets were priced into his quote....hence we are contesting he had allowed for the cost of the works in his quote. He never installed the sockets...so what he costed them at offset the cost of the fuse spurs. Is that unreasonable?
Can those spurs be extras if he never installed the sockets he had quoted on?

If he never actually got around to installing the socket fittings then it should be a simple case of deducting the cost of the materials associated with the sockets and adding back in the cost of the fused spur; this would give you an adjustment. I would say the labour costs are similar enough not to be an issue. If the sockets were actually installed and then needed removing and replacing with the fused spur then you would pay for both unless the plans showed them as being fused spurs in which case the contractor got it wrong so it should be done at his cost. I know you said they weren't fitted but if he fitted back boxes for double sockets that then needed to be changed to a single box for a fused spur there would be costs, also if the fused spurs were at low level with a switch at high level then there could be extra costs, of course there is still the fact that you should have been told about and been asked to approve the extra costs.

jakemillspaek

First and foremost refute the extras unless they were specifically instructed by yourself.
It maybe that he made a mistake with the electrical element in his pricing.
The extras will then be between him and his electrician.
For an extra there might of been an omission.
Unforeseen work should have been notified to yourself.Obviously look at the extras and buy a bit of time.
If there are clauses in the Contract these must be adhered to otherwise you are an open cheque book.
If by requesting changes to the original requirement you have changed his method of work this could be a can of worms.
Who prepared the documents,drawings and Contract?
In hindsight it would of been a good idea to get a Contractor QS on board who is aufait with the nitty gritty of construction.
I'm a freelance QS with 30 years as a Contractors QS and 7 years acting for the client and battles like this are common place when Contracts aren't watertight.

DIYFYI

jakemillspaek - I am in total agreement about the principal of prior approval being needed on any change and, as you say, the contract clearly and unequivocally states quotes and noting of requested changes must be in writing.

Many thanks all...
Either way I dont think it will be a pleasant conclusion to what has been a long and draining build. What stings more is that I know this builder well and have referred 6 projects to him since ours began. Whilst informing him that I am going to have to go back over those referrals to tell that his admin is beyond abysmal and will most likely cost them money isnt something I want to do...it might get him to soften on these extras.

Clive_Woody

I am by my own admission no expert, but £6k of extras for electrical work sounds like a huge amount. Was this a complete re-wire of the house that he forgot to include?

Presumably there was already costs included for electrical work in the original contract, how much was covered there originally if the builder suddenly felt the need to bill for an additional £6k?

I would have thought after the original dispute about un-agreed extras the builder would have learnt his lesson. I wonder if he is trying again to get some of that money where you knocked his costs down the first time.

Have there been significant changes from the original plans you had drawn up that would partly explain all these extras?