Software
Houzz Logo Print
njbuilding143

Builder Allowance to normally include subcontractor installation cost?

10 years ago

It was mentioned in one of my other threads by a member but I think the builder is getting to the point where they are losing money on the job.. I asked the builder for a defined list of outstanding bills I had with them for overages and I noticed he is tacking small amounts on to the items and coming out with bills I never agreed to.. For example our balusters for the stairs had a verbal agreement of $550.. Today he gave me an invoice of $600.. In another bill he had originally quoted me $10 per square foot of walkway but recently said he used the wrong amount and changed it to $12 per square foot.. But one of the things that annoyed me was he gave me a separate bill of $600 for a garage door upgrade/install.. My builders allowance specifies that I have $3500 of allowance for doors and openers.. The way the allowances were explained was that it provides for the material and installation is built into the contract.. So when it came time for the garage doors I told the builder the exact model I wanted.. We picked Clopay Classic Premium doors with the "top notch" insulation and obscure glass windows.. I also opted for the Lift Master 8500 series wall mount openers.. Well.. The builder originally came back and told me that it would be an upgrade charge of $1500 over my allowance.. I then showed him a printout from Home Depot that showed that I could special order the doors and openers PLUS accessories (internet gateway, 2x keypads, custom switch) and it came out to just under $3500.. The builder then came back and said that he talked with his installer and his guy was able to lower the price to match my allowance and mentioned something about installation.. I then told him that installation was not part of the allowance but the general contract price that was covered by them.. He then agreed and it was the end of conversation.. The installation went as planned and the doors have been installed for some time.. I should note that the doors are not even the ones I specified.. They are either an older model door or separate model with very similar specs.. The only differences was the installed doors had a slightly less R value and the windows were similar but not the exact ones I asked for.. We didn't care much at the time and didn't say anything.. HOWEVER, now that he is giving me a bill for $600 I find it very relevant that they are charging me the installation cost and they didn't even supply the exact door that I specified nor did I ever agree to pay ANY fee for the doors.. I am just getting fed up with this builder and looking for "industry standard" in this case.. I already foresee that they are going to say that the allowance includes material and installation costs but would like to have some ammo if it is normal practice.. At the end of the day $600 is not going to kill the bank and is pocket change in the grand scheme of things, but with the attitude they have been having lately the idea of giving any more money is killing me..

Comments (7)

  • 10 years ago

    Industry Standard/Normal practice is that it should be spelled out in the contract whether or not installation is included. Allowances should be for material only and the installation should be included in the base price (unless you later choose something exotic that requires other than typical standard installation.) With the issues you have had every step of the way with this builder it does not surprise me that he is looking for more money now. You have to decide if now is when you want to dig your heels in or not, he is attempting this as he has been able to pull other things on you that you have either given in or settled on and is trying again.....................

  • 10 years ago

    Labor is generally only fixed when materials stay the same. When materials change, labor can too. That ''change'' means a model change, a brand change, a size change, or sometimes even a color change, if it results in additional installation effort (black painted doors for example). Change orders can reset the entire materials and labor structure, plus a change order fee for the administrative end of the job. It is all about how your particular contract is written.

  • 10 years ago

    Ichabod - Most upgrades was verbal.. In the beginning they would supply an invoice weeks after the verbal agreement and then I would pay.. However in the last few months it has been verbal with no invoice supplied..


    I think things are going to take an ugly turn.. I approached the project manager about the driveway installation.. I asked him what material he was using for the curb on both sides of the driveway.. The ENGINEER put it on the site plan as a requirement.. I wanted to find out if they were simply pouring concrete or if there was a way to dress it up with Belgian Blocks.. The builder came back and said that the curb was not in my contract.. I laughed and asked him how he planned to build a house that was AGAINST the engineers plans. He told me that there was no line item for the curb in the contract.. I replied that the entire contract is that the build is in accordance with the supplied plans.. He then said that under the driveway section it only mentions asphalt and there is nothing about a curb.. I told him it was under Curbs and Sidewalks.. He then said that the Curbs and Sidewalks was specifically for the curb line and sidewalks.. I can't see how they are going to proceed as the town has an ordinance that requires the curb on both sides of the driveway.. Needless to say things are getting very tense and I foresee huge problems..

  • 10 years ago

    My experience is that it is best to avoid allowances at all costs, they are fraught with problems. In our contract, for the couple of things we didn't spec in advance or list as "owner to provide" the "allowance" covered the cost of the item and there was a separate line for the rough in, if needed, and installation of the item. In almost all of those cases I ended up sourcing the material and the builder either used the existing installation cost or wrote a change order if it was different.

    It turned out to be very valuable to spend a _long_ time detailing and then reconciling and triple checking the drawings vs the specifications to ensure that everything was the same in both places. Our architect did the drawings, but I then wrote the detailed specification. Many small errors in both places were caught and eliminated during this process.

  • 10 years ago
    last modified: 10 years ago

    njbuilding143,

    If your contract spelled out that he must be complied with county/city code to have CO, then he would do it without you saying anything.

    MIne was like that

  • 10 years ago

    Similar to my experience at the end. You are sick of him, and he is sick of you. And you both just want it to be over.

    In my case I was lucky, because the owner of the firm was fundamentally an honest man that wanted a happy customer, and his project manager was, if not 100%, much the same.

    I allowed a couple of overages but that was dependent on seeing the invoices.

    We had few allowances so that helped. But he did pass on allowance savings as well as billing for oversges. I could write a book, but to be brief, I looked at the project as a whole and didn't make an issue of certain things, while insisting on others...much as it appears you are doing now.

    What's in the contract. Stick to it. There is no such thing as a verbal upgrade hehe. You have to write that stuff down.

    Hang in. You are close now.