Building work - cost escalation

Golactico

Grateful for any informed opinion on this scenario.

*Quotation accepted for a domestic building project that includes the provision of lighting and power points.

*Contractual document detailing agreed price and detailed scope of work (including electrics) is signed by both the contractor and customer.

*Work commences at the agreed time a few months later. Follow weather and other delays, at the point that the basic structure is in place, the contractor advises that having only just made a detailed assessment of the necessary electrical work (this is now 8 months after the initial visit for quotation) it apparent that it isn't possible to use the existing house electrics infrastructure (as had initially been assumed at the time of quote and contract agreement) and the additional work required will incur an additional cost to the customer of £1K.

Is the customer obliged to just cough up, or are they entitled to say 'no - you did an assessment and offered a list of work at a price that has been contractually agreed. The fact that you failed to carry out a proper initial assessment of the scope of the necessary electrical work is of no concern of mine and I will only pay the price offered and agreed in the contract.'

Thanks in advance for any useful opinion.

PHK

It depends what your contract says. As you can't definitely tell conditions until you start (as they'll be coveted by your wallpaper and paint etc) Contracts often include a cause relating to extra costs for unknowns. 

In your case it comes down to whether the contractor could have known the house electrics were suitable or whether it was not possible to know until work began. 

Golactico

Thanks PHK. The assessment leading to the cost escalation was made by an inspection of the outside of the house and the garage, in areas where nothing has been disturbed or revealed by the work carried out so far. This assessment could have been made at the first quotation visit or at any point in the following 8 months to date. They clearly just wrongly assumed what electrical infrastructure would be there for them to use and quoted accordingly. In my (admittedly biased) opinion, they are expecting us to pick up the tab for them not being thorough at the quotation stage.

pinkshoes

So what you're saying is they made a mistake.

Your options are agree and pay or not agree and agree a price for what is done so far.

As this extra work does need doing, then I'm guessing getting someone else in will still require the extra paying.

It's unfortunate but mistakes do happen. It doesn't sound like he has set out to rip you off.

mcplumb

How much is the additional 1k compared to the contract sum? 

If they had assumed that existing CU and wiring were ok, then found not to be what do you want them to do?

Golactico

Definitely not out to rip us off. Just a bit sloppy with their pricing and I'm not sure if we should really have to pick up the tab for that.

PHK

In these cases it's always worth remembering that you (and us) aren't qualified to do the job. So Amy opinion that the contractor didn't do what they should is just that, an opinion. 

If you came at some point to enforce your opinion you run the risk of the contractor producing an expert that agrees with them. And remember it depends what the contract says.  

You really have two choices: either seek professional advice and if it shows the contractor did not take reasonable care or should have known before quoting then you have a case to approach them about the extra cost. 

Otherwise, you have to accept they are the expert and consult your contract. 

Slinky

Would you have not gone ahead with the project if the quote had been £1K higher? TBH if your final bill comes in at only £1K more than the quote, 8 months on from the original quote, on a big project, you'll have been incredibly lucky.

mcplumb

Catch 22, when (as a contractor) you include everything you are miles out price wise. Generally the tender would have been submitted with caveats and assumptions/exclusions.

Unless all contractors priced to a BOQ then what can you do. The problem with BOQ/project managed jobs is they cost more, a lot more.

TELLIT01

Was this a fixed price quotation or an estimate?  Were there any clauses in the contract to the effect that price may be varied due to unforeseeable items? 

When we had our conservatory built there was nothing to suggest problems with the current electrical installation until the contractor attempted to link into the existing ring main and the circuit tripped all the time.  Investigation showed poor work previously done which was concealed as it was below the timber floor.  The contractor spent a day fault finding and then replacing the problematic section of the ring main.  There was obviously an additional cost for that work.  I did argue that the fact that the distribution board had to be replaced should have been noticed on the survey but gave in when they reduced the price for that element.

Arunmor

I pay for drainage and groundworks on a fairly regular basis.  I once asked for a quote and he said fine but I don't know what's down there and will quote accordingly.  Now I just pay hourly rates.

The point being if you can not see something assumptions need to be made.

I personally think you are being unreasonable base on what you say.  Good contractors are are like hens teeth these days.