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»Real Estate Law
Real Estate Law - General Questions

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Is a contractor bound by his written estimate of a job?
As a general rule, a contractor is not bound by an estimate--written or otherwise. An estimate is just that, an estimate. Unless it says that it is a binding contract, it's not.

It is important to understand what the estimate includes. For example, for a kitchen remodeling, does the estimate cover the cost of such expensive items as new appliances, cabinets, countertops, etc.? Some estimates just include the contractor's labor. Others include labor and materials, and then some may cover the cost of the total project, including the subcontractors' labor, and all materials.

If the contractor offers to get the materials, ask if there is an additional charge for the time spent in obtaining the materials and if you'll be charged the retail price or if you will be given the discounted "wholesale" or "contractor" prices on supplies.

It is a good idea to get the benefit of other's experiences with your contractor. When checking references, ask former customers if the estimates the contractor gave before the job matched with the final bill.

Home improvement projects routinely encounter unanticipated circumstances that must be dealt with, such as dry rot, which can significantly add to the cost. However, client changes are often the culprit for cost overruns. If the contractor suggests a change, always ask the cost implications.

If you don't feel that there is a good explanation for the difference between your estimate and final bill, you may seek recourse through a local contractor's guild or the Better Business Bureau. If that doesn't work or you suspect fraud, contact an attorney. Merely not paying the bill can cause future problems if the contractor files a "mechanic's lien" - a legal claim attached to your property--which can make resale difficuilt.

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