A bid on square footage unless you have a finished plan and you've picked out all your fixtures and finishes means nothing.

They are using what's 'under' the roof which includes all porches under roof. SF pricing is complete BS IMO. ditto what cp said.

80% done? Ok. Options are limited!

Price per square foot means nothing. It costs more for a foot of kitchen than it does for a foot of hallway.

Do you have a spec document? What is included? Do you have allowances? Is that where you are over?

To add. Are they saying "we estimated lumber and framing labor at 2600 square feet but its really 3100 square feet so you owe us x dollars more?"

If your construction documents are part of the contract, this doesnt fly.

Now, my contract had a clause something like if lumber prices increase by more than x percent over y time period, the builder can show me the invoices and I would be liable for the increase because it is out of his hands

There is no industry standard. Unless you have a contract that guarantees the job will be completed for a maximum of X dollars times Y square feet, this line of inquiry is not going to be productive. Are you saying you have a signed contract that says the project cost will be the number of square feet times a certain amount per square foot, but that no one did the multiplication to get a total cost?

Real contractors don’t ever “bid based on square footage. They may really rough estimate that way. But a contract? Nope. A contactable bottom line number is a fixed priced contract. One where you pay what the subs charge plus a fee is a Cost Plus. There is no real bottom line with that.

Now, what type of contract do you have?

An estimate of the cost to construct a home based on an assumed cost/SF is not too far removed from estimating the cost of a car based on the weight or cost/lb. (cost/kg for our Canadian friends.)

The overall scope of a residential construction project includes all constructed areas (living area, unfinished basement area, garages, porches, decks, terraces, etc.) and their construction costs. The cost/SF of each space is different. To include them in an area total and multiply it by some cost/SF is simply ridiculous, but your contract may allow that. Past time to check with an attorney.

Every single contractor here can't be bothered to do anything but bid rough estimates. I don't mind that it is a rough estimate, but the problem is that somehow there is some bogus SF number used which exceeds that of porch, balcony, and living space. I do not know how that number was obtained so I must ask the city today.

The guy actually never bothered to sign a contract though we only signed one to do ~2600 SF of construction without approving the use of the contract to exceed that amount unless it is pre-approved by change order, so I guess I am not under any obligation to continue to pay him either unless he explains how he calculated the numbers.

This is the proposal we had signed:

This proposal is to build a 1746 square foot addition and remodel 1076 square feet of existing house.

A: The contractor will supply all material and labor to build the 1746 square foot addition per plan

and 1076 square foot remodel.

Scope of contractor work to include:

1: Demolition: Work that requires the demolition of the existing structure walls, roof and connection

to the new house. This includes dumpster rental and hauling away of all demolition materials.

Demolition to include removal of existing trees and bushes surrounding the property, as well as

sprinkler pipe removal from yard.

2: Foundation: To include pouring of new foundation pertaining to the new addition and existing

house, any structural supports for existing structure, framing, drywall and painting within the city

requirement to pass inspection.

3: Electrical. The GC will use MC (metal clad) cable, a commercial grade material, and supply 4-

inch LED lighting. All lights will have LED dimmer, and meet all requirement of the owner.

4: Plumbing. Includes all materials and labor. The GC will use copper L pipe and meet all the

calculations of the fixtures. The GC will supply the fixture list with unit price to the owner for this

project. To upgrade to a more expensive fixture, the owner will pay material difference and the GC

will install it.

5: Solar power. If the owner needs to install the solar power, this proposal includes the structure

requirement to accommodate, but the owner needs to provide the detailed design.

6: Tile. Includes $2.5/sq. ft. materials (Supply store: Arizona tile) and all labor. The owner chooses

the tile and pays the difference for upgrades if needed.

7: Cabinetry. GC supplies all materials and labor, including all material from Cabinet City, or $7000

for cabinets and $2500 for counter tops. Owner pays the difference in price if materials exceed

these amounts.

8: Shower door and toilets, including all materials and labor; Materials: $1200 for shower door and

$200 for toilet. If owner chooses upgrades, will pay difference.

9: Interior doors. The GC will supply 6-panel hardcore door in white color.

10: Front entrance: 5 feet by 8 feet custom make door, with glass at one side.

11: Flooring, including all materials and labor. Materials provided: Engineered wood, $3/sf.

12: Windows and sliding doors: Vinyl frame, tempered, low-e glass (Milgard, low emissivity). Owner

will pay the price difference of approximately 50% (or ~$10,000) for window frame upgrade to

fiberglass.

13: Wall: Smooth.

14: Baseboards: 5-inch, white color.

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15: HVAC: New 5 tons A/C unit with heat pump and duct works (Carrier). No need for owner to

pay additional testing fees.

16: Skylight, including all material and labor.

17: Poured concrete parking slab adjacent to existing parking garage. Poured concrete walkways

will be added as needed around perimeter of house.

18: New shingle roof: including all material and labor.

19: All finish material, to be approved by the owner prior to GC placing order.

20: All tool rental, equipment rental, toilet rental, and fence rental included.

21: Permits and approvals: The contractor will secure all permits and approvals. Owner will pay

permit fees, engineer fees, and other third party inspection fees not covered by GC.

22: Specify change orders: The owner may order changes, additions, or modifications without

invalidating the contract. Any changes affecting the cost of the job, either by the owner or by city

requirements, shall be priced in writing in a timely manner by the GC and agreed upon by both the

owner and contractor before commencing work.

Once the owner approves, payment of 50% is due. Upon completion, 100% is due. The GC

must supply the best price and reasonable bid to guarantee that the owner has the best service and

quality.

23: Payment schedule: Deposit of $1000 upon signing contract, payment of 30% when start work,

30% when finish all rough inspection, 30% when finish all stucco and painting, 10% final. Price includes

all taxes and labor, and the materials as detailed above.

24: Term: 180 days to complete project from the date of obtaining permit from the city. This time

frame does not include any change and subsequent submission of plans to the city if needed. The

completion schedule for the work or affected parts of the work shall be extended by the same

amount of time caused by the delay.

25: Cables: This proposal also includes running all low-VOC cables (for TV, internet, phone lines,

surveillance cameras) before covering the wall.

26: Patio and outside concrete steps are included.

27: Sewer: Includes laying new sewage pipes.

28: Bury power lines: Help install 3-inch conduit underground (includes plot plan, load schedule,

and single line drawing submission to the city). Relocate meter.

29: Contractor is responsible for hauling away work-related debris.

30: Contractor general liability insurance ($2 million) and worker’s compensation ($1 million)

information has been provided. The contractor shall purchase and maintain such insurance

necessary to protect from claims under workers compensation and from any damage to the owner’s

property resulting from the conduct of this contract. The contractor shall indemnify and hold

harmless the owner for and against all claims, damages, losses, expenses, legal fees or other costs

arising or resulting from the contractor’s performance of the work or provisions of this section.

31: Other Provisions: Claims or disputes relating to the Agreement or General Provisions shall be

resolved by mediation or arbitration services provided by consumer affairs offices of local

governments or local members of the National Academy of Conciliators (tel. 214/638-5633), the

Center for Dispute Settlement (tel. 202/265/9572), or the American Arbitration Association (tel.

212/484-4000) unless both parties mutually agree to other methods.

32: Payments And Completion: Payments may be withheld because of

i) defective work not remedied.

ii) failure of contractors to make proper payments to subcontractors, workers, or suppliers,

iii) persistent failure to carry out work in accordance with this agreement or these general

conditions.

iv) legal claims.

Final payment shall be due after complete release of any and all liens arising out of the contract or

submission of receipts or other evidence of payment covering all subcontractors or suppliers who

could file such a lien. The contractor indemnifies the owner against such liens and shall refund all

monies including costs and reasonable attorney’s fees paid by the owner in discharging the liens.

Page 3 of 3

33. Protection Of Property And Person: The contractor is responsible for initiating, maintaining,

and supervising all necessary or required safety programs. He should comply with all applicable rules,

regulations, ordinances, orders or laws of federal, state, county, or local government. The contractor

shall indemnify the owner for all property loss or damage to the owner caused by his employees, or

his direct or sub-tier subcontractors.

34. Correction Of Deficiencies: The contractor shall correct promptly any work of his own or

his subcontractors found to be defective or not complying with the terms of the contract.

35. Termination: If the owner fails to make a payment under the terms of this contract (through

no fault of the contractor), the contractor may, upon five days written notice to the owner, and if not

satisfied, terminate the contract. The owner shall pay the contractor for work completed and any

proven loss sustained on wages, materials, equipment and machinery, subcontractors and related

costs, as well as reasonable attorney’s fees. If the contractor fails or neglects to carry out the terms of

the contract the owner, after five days written notice to the contractor, may terminate the contract,

The owner may finish the job by whatever reasonable method the owner deems expedient, If the

cost of completion exceeds the contract balance the difference as well as reasonable attorney’s

fees if necessary shall be paid to the owner by the contractor.

THANK YOU FOR YOUR BUSINESS!

B: Contract amount:

Addition: 1,746 sf x $160/sf = $279,360.00

Existing: 1,076 sf x $80/sf = $86,080.00

Total: $365,440

OK I guess the actual sq ft is as above. The new claim is that the existing sq ft is ~1100 and the addition is ~2000. I don't have an issue with him finishing the house 9-12 months late (he stopped hiring crews and only has one worker slowly doing stuff now) or me having to pay extra for better materials.

Clearly the contract says that patio and outside concrete steps are included (#26 in contract). So why would he add sq ft to cover those areas? We added tile to 73 ft porch and he didn't charge labor for 2 days tiling work. But I would rather pay materials and labor than an extra $11680. The balcony I can see him adding the charge for it if he covers all basic balcony material.

I want to pay him what is a fair calculation. So he suddenly wants 400k instead of 365k. Not sure that is gonna fly with me unless I understand what the deal is.

(BTW I had to write this contract myself. He is old school and he doesn't do much paperwork, I don't even think he signed the final even though he said he would.)

What materials and/or drawings did the contractor have in hand at the time of the proposal? Assuming the footage was pulled from that document, did the document clearly describe the nature of the footage while also describing the other 500 sf or balcony?

If the plans said "1746 sf interior sf addition + balcony + porches" that were clearly defined, I would disagree with his billing.

If the plans didn't define this his contract and billing is pretty clear.

While I don't give clients "per sq ft" estimates, there is a significant cost to build balconies, covered porches & interior courtyards.... sometimes more per foot than carpeted bedrooms.

Have prospective clients all the time who have conveniently misunderstood PSF estimates from other builders and find themselves well over budget looking for solutions. Biggest misses besides garages, porches, decks are permits & grading.

Who did the design work and documentation for this job? I’m guessing no one. That “contract” is the most halfass thing I’ve ever seen for an agreement beyond a spit and shake hands. It doesn’t appear to have even a nodding acquaintance with either construction realities, or a lawyer. It’s unenforceable.

"It’s unenforceable."

What would make the contract unenforceable? The contract is absolutely enforceable, it is, however, insufficient to address your current issue. All contracts are insufficient in some way, most people are just fortunate enough to not find themselves facing that problem.

There are some advantages to vague contracts. In reality you now have to renegotiate this portion of your contract. He really has no better position than you, so I would personally meet him in middle and give him some recompense but not the full amount he wants.

Sindy:

Tell him he's got 385K if he finishes in the next three weeks. Win/win.

It’s unenforceable because the homeowner wrote it, and there are zero real specifications or standards attached. And it was never signed. There was no acknowledgement that the document exists as the basis for a common understanding of the scope of work.

The contractor could say that they had a verbal agreement for anything he wanted to say, and in the absence of recorded written communication, or a signed agreement, the HO cannot prove otherwise. He could say he has never seen that in his life. And that the HO verbally agreed to 1M as his fee for the work. If he wanted to do so.

But, he wants a relatively modest price increase, which given the massive scope being done, does not seem to be unreasonable on the face, no matter how bizarrely and nonstandardly the project pricing was calculated. But that is even more reason to not move forward with better documentation for everything. Both parties need to be clear about expectations. What exists is not clear.

It’s unenforceable because the homeowner wrote it, and there are zero real specifications or standards attached. And it was never signed. There was no acknowledgement that the document exists as the basis for a common understanding of the scope of work.

The fact that it the homeowner wrote it and that there are zero real specifications or standards is largely moot. The contract may not be very good, but it is still absolutely an enforceable legally binding contract. So long as the contractor knew of its existence and didn't add real specifications or standards, then he is going to be bound by it. It doesn't even matter if he read it, so long as he was given the opportunity to read it and chose not to.

A signature is not required for a contract to be enforceable. It is certainly the best way to signal acceptance of a contract, but there is no legal requirement for signing. In fact, even the statute of frauds only requires the agreement be memorialized. The law doesn't allow people to renegotiate or void an agreement that they have acted on simply because they didn't sign it. So long as the contractor was presented the contract and subsequently did the work, then he is bound by the contract.

Now as to the assertion that the contractor didn't know about the existence of the contract, the OP didn't say anything like that. In fact, the post led me to believe that the contractor was presented to the contract and he knew of it.

----------

The problem isn't enforceability, the problem is that the contract just doesn't adequately cover this situation. The OP is going to argue that the contractor was aware of the full scope of the job when they entered into the job and acceptance of the job without modifications to the price constituted his acceptance of those totals. Again, that is a powerful position because there is precedent that the expert has the burden to verify items that are within their expertise. The contractor is going to argue that he was accepting the price per square foot rather than the total.

My bet is that mediation/arbitration is going to split the difference, but you never know.

This is a crazy situation.

Did you get any other estimates or bids on this job from other contractors? What were they?

Where did you find this guy? Relative? Friend of the family?

The difference is less than 10%. Can he document his excess expenses at all?

I guess ppl do business like this every day. I dont get it.

I only ever got really crappy estimates from every single contractor I gave my building plans to. The final price for this contract was agreed upon after all building documents were approved by the city. This guy operates similar to many contractors in the area. Everyone is lazy and seem to find this acceptable. It wasn't necessary for me to pick the finishes etc because he already told me what he would cover and any materials past that I would cover.

In any case I think I figured out where he's getting the extra SF. There's an area with a high ceiling above 14 feet in height which the city documents as potential space for a second story, even though no plans were made to build a second story.

This area is designated as O/14 FT CLG. He's charging me for that. Is this legit? He said the 2773 SF figure isn't correct and the 3109 SF area is what he's basing his fees on. I've never heard of anyone charging for a ceiling or potential SF.

He's charging me for that. Is this legit?

Nothing about the deal is legit.

What Joseph Corlett said above. Tell him to finish the job and you will meet him in the middle.

I won't meet him in the middle if he's double charging me for ceiling square footage. Nope. If he has itemized bill stating that he needs more money for the house, sure. But not for something bogus.

Literally at this point I could use my remaining money to hire somebody else to finish the job.

There is a standard method in the U.S. for calculating the area of homes. It is outlined in ANSI standard Z765-2003. Spoiler alert: you can't count air space as square footage. Here's a link:

https://krec.ky.gov/legal/Legal%20Forms%20%20Contracts/calc_sqfootage.pdf

Canada likely has a different standard, but I wouldn't expect it to be that different except for metric vs. English units.

What general area of the country are you? Just asking because we did a remarkably similar size and type of job a couple of years ago, and (if I back out the comically inadequate allowances he gave you and put in our actual numbers) the price was so close - about 10% lower but that's probably accounted for by increased materials and labor costs.

Anyway, best of luck. Ours was just a flat fee based off the detailed plans so we didn't have any pricing discrepancies once we all signed the contract.

LA is in another continent......Prices there are INSANE!!!!!!!!!!!!!!!!!! I really don't know how CA allows this BS!!!!!!!!!!!!!!!! IMO......it must be about taxes.......make as much as possible...................