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Please help..what should we expect in a cost plus contract?

15 years ago

We signed a time & material contract with a contractor we have known all his life. He is known to be honest and builds high quality houses. He estimated what he thought the house would cost and told us we would all come out ahead if we did this kind of a contract.

It has been 7 months now and our house has gone over estimate around 25%. He has been completely distracted / uninterested and is always forgetting what we have asked for.

We were surprised each month to receive invoices that only state for example

1. labor, misc. material ..$xxxxxx

2 xxxxx Lumber Co. lumber, misc. material Â.$xxxxxx

The part we were surprised about was this...we thought he would show us receipts to show what miscellaneous included. We have never seen a receipt for anything.

We were also under the impression that we would be shown the time log for each carpenterÂhe made a point of telling us in the beginning that he kept a log for each person.

When he hires subs he has their name and amount and includes a lien waver, so that is a good thing.

Our house should be finished in less than a month and he and I just had a big argument. Every time there has been a screw up [for instance we asked for white interior windows and hardware and got brown], the expense of re-doing comes out of our pocket. This time I told him we were tired of paying for his mistakes. The amount was only $180.00, but it was like the last straw. Now that the honeymoon is over, I am wondering if we should ask to see receipts etc.

Also is it customary for the contractor to add his percent to the labor also? We just expected it to be on materials.

I would very much appreciate any advice or input on how to proceed. We are in a precarious position too because our son-in-law is one of the carpenters. We love him so much and donÂt want to put him "between a rock and a hard place".

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