OT question about contract allowances
amylachney
7 years ago
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sjhockeyfan325
7 years agoamylachney
7 years agoRelated Discussions
Lots of questions - allowances, specifying choices in contract
Comments (10)He is a good friend, but... Actually, I think he's doing most of the work himself, because of the lack of work in this economic state our country is in. These allowances haven't been written up in a contract yet, but I will question how we'll even come close to those. I guess that's the point of low bids. You'll almost never come in under. I wanted my dad to be the GC, but I think my husband feels like he wants to help out our friend in these tough economic times. As far as moving, we've been through that conversation many times. Here's the deal...we bought our home in 2000 for it's location. We're in a river community. We have a decent amount of land, and as my realtor has always said, we'll never lose on anything we do to our home. We put a pool in back in 2002, and we would definitely want another one if we bought another house or built new. We are both teachers in our town and I work about 1/2 mile from my work and my 3 children's school and my husband is about 2 miles from his. Our neighbors are the best. We're very close-knit. We are in NJ, and in our area there isn't any land we'd be interested in for sale. We are close to things and yet secluded. Anytime I discussed moving in the past, people would tell us we're nuts and they wished they lived in our neighborhood. I've looked around at homes for sale on line and anything I would consider is about 380k and needs to be updated which will be even more $. I know we'll go over our allowances, the question is how much....See MoreA Question about HOAs and Contract Contingencies
Comments (17)I just sold in Maryland and it is 10 days for condo resale documents/HOA rules. I had to buy the book from the HOA which was $75.00. The buyer had 10 days to back out of the deal after the date of receiving the book. I am in the market for a townhouse now, so I was told it is 5 days for the HOA documents and I can reject the offer if I do not agree with the HOA. Also you can use that time to back out of the contract. But you should always read quickly the documents. A very large HOA in our area does not allow pickup trucks....so how would you like to go there, buy a home and know you have to sell your truck....See MoreShould the homeowner avoid construction contract allowance?
Comments (12)Inadequate allowances are one of the biggest reasons for budgets being blown. What generally happens in my locale is that to squeeze within a customers budget, the contractor will not completely "hard bid" a job. They'll include allowances. It's an easy way to shave money off the bid, and flooring and tile are the two most abused areas where this occurs. Contractors like them because then "everything is included" in the bid. It makes the bid price appear complete, even though in reality it's not. Homeowners like them because, for the most part, the homeowner is simply ignorant of the reality of what an allowance is. Because the bid lists everything, they think the bid is complete. And it is in terms of the scope of work. But the allowance amounts are generally underestimated, but the homeowner doesn't find that out until they go shopping for materials. I see bids all the time with $5 a sqft for hardwood flooring. Homeowners often think that's just for material, but often times it's for labor/installation and material. It can often lead to a $20k discrepancy when it comes time to install the flooring. I tell people to go shopping after they get a bid. You were allowed $3 for tile? Find out if that's for tile only, or for tile and all other installation materials (backerboard, grout, thinset, etc), or for everything including labor. In the contract, it should also stipulate what exactly the allowance allows. It is just tile itself? Or tile and all installation materials but not labor. Or everything. Regardless of how it's calculated, whittle the number down to the "tile only" price. Then go find tile in that price. If you can. Flooring. Bathroom tile. Kitchen cabinets. Appliances. Plumbing fixtures. Be realistic when it comes to pricing those out. Much of what I posed is a bit redundant. But allowances get abused big time. So be aware. And be realistic....See MoreQuestion about a clause in the contract - disagreement with GC
Comments (8)Your contractor is a petty and silly man, and does not have a legal leg to stand on. The gist of the contract is that you can choose him to do the work and you pay him, or you choose to do the work and he credits your contract that amount. How you choose to do the work...by yourself, with your spouse, with a neighbor, or hire it out to a third-party...is non of the GC's business. Contract language in and of itself can't be overly one-sided. Well, the language can, but that language won't be enforced in a court of law. It all comes down to "reasonable interpretation", and your GC's is being unreasonable. You simply have a disagreement. Proceed as you wish and let him take you to court afterward. The likelihood of him doing that is virtually nil. As Casey, wrote, though, be careful. If your new subs slow him down, he can walk away while you get your ducks in line and he can delay the completion of your project. Mongo...See MoreThe Kitchen Place
7 years agoamylachney
7 years agoMichael M
7 years agolast modified: 7 years agoRuss Barnard
7 years agoamylachney
7 years agocpartist
7 years agoRuss Barnard
7 years agoMichael M
7 years agoamylachney
7 years agoRuss Barnard
7 years agoNew Freedom Nurse
7 years agolast modified: 7 years agosjhockeyfan325
7 years agock_squared
7 years agocatbuilder
7 years agomillworkman
7 years agosjhockeyfan325
7 years agofreeoscar
7 years agoRuss Barnard
7 years agoblfenton
7 years ago
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