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June 29, 2008

Ripped off by a contractor ?

I just signed a contract with a contractor for a total amount of $13k. Just paid the 1/3 deposit and i just got quote from 4 other guys all around $3k. So clearly I am being ripped off by the guy I signed with (I know I should have not signed before getting additional quote - my mistake). But my question is: what is my recourse ? Can I take the contractor to small claim court for overcharging ?

Comments

What's the job, specifically? It's impossible to comment on what you're paying not knowing that.

In general, no, you're not getting "ripped off". The contractor is doing nothing wrong. You just didn't get enough quotes. Take responsibility for it. You don't have grounds to get your money back. You could only do that if he doesn't show up and do the work. Not because he simply gave his quote and you accepted it then regretted it.

Besides, I wouldn't regret not going with such cheap quotes. I hate how much contractors cost here but have to say I've learned my lesson, the really cheap ones are crappy and cost more in the long run. And are you sure they'll submit for permits, if you are moving plumbing or electricity? Not for $3K they aren't.

Posted by: guest at June 29, 2008 10:19 AM

Yeah, it was a mistake but the Bush administration has taken the same approach with the federal bidding process for the past five years so you're not alone.

In order to break a contract you need to prove that the contractor breached it or he deliberately misled you into approving work he knew you didn't need done. As far as I know, overcharging on a fixed bid contract isn't grounds to void it. That's the entire reason for getting quotes before you sign.

Posted by: Steve at June 29, 2008 10:34 AM

small claims court for overcharging? overcharging according to who? Prices on construction are not regulated my the government so how can he "overchage" you? He set a price which you agreed to via the deposit.

Posted by: guest at June 29, 2008 11:32 AM

The guy with the $13k bid sounds like a jobber. Jobbers typically work for themselves. Even though they may have DCA licenses, they don't actually do the work. Their gig is to give high-ball quotes to the prospective customer, then negotiate with the independent contractors you could have been dealing with directly. Jobbers are typically a lot more "presentable" and sales-oriented than GCs so they tend to work the deep-pocket neighborhoods. They also show up for estimates a lot sooner than will a busy contractor.

Hate to say, it really could be only a $3k job. The rest is profit for him.

I rarely use contractors but when I need something done that the one (1) GC I trust can't do, I get five bids. The high and low bids get tossed.

When I was bidding out the excavation and paver work for my back yard, the first guy who showed up wore a suit, a big smile and had a book full of photos of "his" previous work. He wanted $19k. What gave him away as a jobber is that a couple of his pictures had the masonry contractors' trucks in the background and they had different names on the side. Either he was misrepresenting his work or he was a jobber. Dumbass.

I went with the middle bid ($8k) and have been very happy with it.

Posted by: Steve at June 29, 2008 12:00 PM

At this point you could cut your loses with the first contractor and lose the first 4k. Then hire one of the other contractors for 3k. Just think of yourself as saving 6k from the first bid. Glass half full.

Posted by: guest at June 29, 2008 10:44 PM

scroll down a few posts to "screen door".

the responder swears by the screen door that costs $400, Lowes sells the same one for $99 is that a rip-off.

I have found that you (almost always) get what you pay for.

Posted by: guest at June 30, 2008 12:00 AM

"Hate to say, it really could be only a $3k job. The rest is profit for him."

We weren't even told what the job was!

Come on. You can't make that kind of statement having no clue what the job is. The OP could be talking about an entire kitchen installation for all we know.

The OP did not provide enough information at all for anybody to give any good advice or help provide context, here. Except what's already been said, that no, you can't take a contractor to court to get your money back because you agreed to the price they quoted you.

Posted by: guest at June 30, 2008 1:22 PM

I don't need to know what the job is. If he bid out the same job to five different contractors and one estimated $13k and four gave quotes for $3k, what does it suggest? That there's one honest guy and four crooks who just happened to bid the same number?

On virtually every job I've bid out there's invariably at least one guy looking for me to finance his summer vacation. I always toss the high bid so I don't know if his intent was to use gold plated nails. I do know that, so far, I haven't been sorry not to pick him.


Posted by: Steve at June 30, 2008 1:33 PM

how about some names here so no one else uses this guy...

Posted by: guest at June 30, 2008 3:29 PM

The question about permits is a good one. You have no way of knowing if the low bidders will come in on budget or if they'll run over. (same for high bidder). But you have three options --
Stop payment on the check to the first contractor, or ask him nicely for a settlement -- maybe he'll take two grand to walk away and you'll get two grand back from him. Otherwise you made a $4,000 deposit on a learning experience. Consider it cheap for re-learning what the point of getting estimates is.

Posted by: guest at June 30, 2008 3:54 PM

Ask him for his licenses. If he does not have a licenses you will automatically win in small claims court. Try to find some fault first. If he is using someone else's license or no insurance.

Posted by: guest at June 30, 2008 11:51 PM

It's hard to imagine a job that costs only 3k and requires a contractor. The poster should know that there's a difference between contractors who use licensed workers, know city codes, etc., and those who don't. And I'd say that references are just as important as the price quote.

Posted by: guest at July 1, 2008 7:07 AM

Exactly, 7:07. That was my thought too.

Posted by: guest at July 1, 2008 12:00 PM

How about confronting him without arguing? Ask him if perhaps he made a mistake. If he takes the strong arm approach and says a contract is a contract, then if you use him torture him every step of the way. Point out every imperfection. If no work has been started, then perhaps hiring an attorney will be worth the savings. Always ask to be named coinsured and make sure they have workmen's compensation and liability insurance documents.

Posted by: guest at July 1, 2008 12:22 PM

its always amazing when yuppie homeonwers who have never gotten their hands dirty in their life think they know what is expensive and what isnt. clueless!!

Posted by: guest at July 2, 2008 2:46 PM

2:46: I've been renovating old houses since I was 9 years old. I laid my first sidewalk at age 11, my first stone wall at 13, wired my first basement at 14. I've built three residential lofts, two commercial audio recording studios and two restaurants.

Some of us yuppie homeowners know a helluva lot more about construction than many incompetents who call themselves "home improvement contractors" by virtue of getting a 70% passing grade on a 30 question DCA test.

Posted by: Steve at July 3, 2008 1:57 AM

So that is why the pictures of your house on brooklynrowhouse.com look like they were renovated by a 9 year old. Thank you for sharing.

Posted by: guest at July 5, 2008 7:38 PM

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