I hired a local contractor to do some work on a house I own. Here goes, I ask what his rates were and was told it was $25 per hour per worker. I told him I couldn't enter into such an agreement because if the job ran over in time I could see how this could get out of hand fast, at a rate of $4ooo per week. I told him I wanted to do some estimating and get back with him on a set price. I came up with $12,500 for the complete job. He agreed and proceeded to go to work. He later called me to say that the job was taking more hours than expected and wanted to know what to do, I said you need to finish the job. Now that the job is finished I get a bill for $27,810 a 122.48% increase, $18600 of this is labor. This man is someone I consider a friend and I am friends with the people in his community. This doesn't make me a pro but I have built 7 new homes and have never had a contract and never had any issues prior to this one. How would you handle this mess? And I sure don't need the "you should have got a contract" - it's to late now!!! I have never needed a contract when dealing with an Amish Community member.
Where are you located ?
What does the written contract state ?
Yes you needed a contract, now its You said He said
Did you tell him he needed to "Finish the job" or "Finish the job at the agreed upon price ?
Contract = "meeting of the minds" verbal or written.
OP your post generates 50+ questions.
Is the "contractors" SOP to bill by the hour, or provide lump sum proposals prior to commencing the work ?
You did the estimate.. how many manhours did you plan on?
are you an estimator by trade? You did 7 houses..were they all just like
this project...cookie cutter?
Why did you ask his "Rate"? Some projects need to be divisioned into
phases..until a real scope of work required can be determined. Then an
estimate, proposal, or offer to sell is agreed too. "meeting of the minds"
$25 / hr with WC & taxes is a very low rate for skilled labor.
3 @ $25 X 6.2 weeks (120 man/hrs/wk) = $18,600
Material & other costs $ 9,210.00...
So did you fiqure $ 3,290.00 for labor? 3 men 1.1 weeks?
Did they goof off? make mistakes and spend a lot of time on rework?
from the limited info I can see.. you did not have a meeting of the minds.
I suggest you study this project and fiqure out what is fair..