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Added cost for new home build elevation

6 years ago

We contracted to build a winter home in Florida on 5/31/19. We purchased the lot in an established subdivision, but the purchase was contingent on the builder checking it out and verifying it was buildable, not in a flood zone, etc., which they did. The builder gave us a 10-12 mo. estimate for completion, which they have far exceeded.


In July 2019 we signed a site plan for the house, to be centered on the lot, but later found a new site plan was drawn up, without our signature, moving the house 2 ft. to the left to allow for the septic field. After numerous delays upfront (permitting, truss plan changes, etc.), the footer was finally poured in Feb. 2020, at which time we went down to see the progress & meet with the builder. We were told then that they were just made aware of changes in health dept. regulations for the septic system which would require that we either install a septic pump, for a few thousand dollars, or raise the elevation of the home 3 - 4 ft., at a cost of $7,000. We later found out that they were made aware of these changes in July, but failed to tell us. Due to our fear of electrical outages during hurricane season, we opted for the change in elevation. The added cost was not itemized, only listed as "site work" for septic. It was verbally stated that the added cost was to cover the extra height of walls, as well as the fill needed to be brought in to raise the elevation.


Since that time, the ICF walls have gone up, the roof trusses and underlayment were put on, fill was brought in & compacted to raise the interior elevation, & the floating slab was poured. Electrical & plumbing work continued on the house, and the septic tank and lateral lines were put in, but no exterior fill has ever been brought in. When we asked, we were told they were encountering problems with how to achieve an appropriate slope without causing drainage problems for the one neighboring house, since our build ended up closer that property line than originally planned. We have pressed them repeatedly for how this was going to be resolved, and we've been told they might have to put in a retaining wall, they were going to call in an engineer, etc. They also discussed the possibility of having to have steps installed to entryways, which we opposed to given our ages. The builder himself at one point told us on the phone that they could put in curved ramps from the doorways to the drive to avoid having to put in steps. He also assured us that none of this exterior elevation work, whether it be a retaining wall or a slope, would cost us any additional money.


Now, about a month after that conversation, the project manager mentioned that she knew we wouldn't be happy, but the exterior work would require additional money, and that the $7,000 we paid was only for the walls and interior fill. We don't HAVE any additional money. We paid for the house out of our own savings, which is depleted. The $7000 was a cushion we were holding out to later install fencing and buy furnishings. Do we have any recourse on this? They have not stated how much extra they're talking about, and we are holding out hope that the builder will stand by his word, but we want to be prepared for how to handle this. Any advice?

Comments (13)

  • 6 years ago

    What type of contract did you sign? Sounds like you need to hire a construction lawyer.

    HU-89367023 thanked cpartist
  • 6 years ago

    The contract did state that, after a period of time, we could be liable for a cost increase for products, which this doesn't involve. It also allowed for added cost for necessary fill and grade, as well as retaining walls, but we were made to believe the $7,000 we paid covered all of this.

  • PRO
    6 years ago

    Was your site development plan included as a contract document and/or the scope of site work shown included in the contract scope of work?

    HU-89367023 thanked Charles Ross Homes
  • PRO
    6 years ago
    last modified: 6 years ago

    Your builder should have discussed the additional scope of work involving elevation rise and he should have given you the total cost for the entire job instead of feeding you in bits and pieces while milking you dry. Sounds like you being out of state and he is taking advantage of that.

    That's like selling a car and a customer wants a sunroof and you tell him 1,500, take the money and say that's only the sunroof, now we have to cut the hole that's another 1,500, take that... now I know you not gonna be happy because we have to fix a headliner inside the car and that's another 700. This can go on and on and for as long as the customer is willing to pay you might as well add for the sunroof motor and a button you push to open or close the roof.

    As CPA said I would consult with an attorney and go over the contract if the builder is not willing to pick up or drop any charges.

    Good luck.

    HU-89367023 thanked GN Builders L.L.C
  • 6 years ago

    Consultation with an attorney.


    If you continue - change orders are to be memorialized with costs in writing / email and really nailed down in their description. It also sounds like they hadn't thought through the ramifications of the initial change and how they would impact the exterior, etc. Sadly - not uncommon.


    Good luck - and hope this works out.

    HU-89367023 thanked just_janni
  • 6 years ago

    Charles Ross Homes, Millworkman, and GN Builders, LLC: The site development plan was not included as a contract document. We were only told verbally at the meeting that, because of the new septic regulations, the ground had to be brought up to bring it an additional amount above sea level. We questioned the amount of additional money and were told it was because of the cost of adding a higher level to the walls themselves in addition to the dirt. Unfortunately, the only description given in the change order is that it was for "Additional site work for septic". We have a telephone conference set with them this morning. Hopefully it can be resolved, or we will probably consult an attorney to see where to go from here. Thank you everyone!

  • 6 years ago

    If you need an attorney, you need to consult with a CONSTRUCTION attorney.

    HU-89367023 thanked cpartist
  • 6 years ago

    (not a pro) Record your telephone conference (if you can and if it hasn't already taken place.) It's easy to record Zoom sessions if you're the host, and Zoom is free for 40 minutes at least.

    If you can't do that, then follow up with an email detailing exactly what was discussed and agreed upon. You need to have everything in writing.

    I'm sorry this is happening and if you want some help setting up future Zoom calls and recording them, I'd be happy to send you some quick instructions via email. I'm serious because if it were my friends or folks I would hate to see them in this bind.

    HU-89367023 thanked chicagoans
  • 6 years ago

    I feel for your situation. We also were told that we would have a charge slightly higher because we needed extra dirt and a thicker foundation. We were told an extra 10,000 but I believe it was less.

    It was shady of your contractor to not mention it right away but would it have stopped you from building? Unfortunately it is very rare to not exceed a new construction budget. I have read multiple times to expect to go over. I have worked very hard at finding deals without compromising on the look we are going for. We are over half way in our build and are $17,000 under budget in our allowances. Unfortunately there are things that come up that we have no control over so even with a huge deficit from our selections our actual expenses are about $3,000 over budget so far. You may want to look into a loan if you are at your max on this house before really building. Things come up and it feels like your bleeding money at times but it's best not to be blindsided and expect unaccounted expenses.

    HU-89367023 thanked Jennifer C
  • 6 years ago

    I know you're struggling with this now, but as someone in Florida in a house that sits lower than the neighboring homes, you'll grow to appreciate the extra elevation. My house is perfect for us in so many ways, but every time a storm comes, we question why the original owners didn't raise the house an extra foot or two.

    HU-89367023 thanked LH On the Move
  • 6 years ago

    Thanks to everyone for your comments and assistance. Unfortunately, the conference call devolved into a shouting match, but we were finally able to agree upon a minimal added cost for more fill to complete the exterior elevation. We are requesting a written confirmation that there will be no other money requested before we submit payment. Hopefully we'll be in the house before this winter season. Wish us luck!

  • 5 years ago
    last modified: 5 years ago

    I had a similar situation, and a familiar construction lawyer helped me save money. I hired builders to build me a sauna. The cost of work and materials was initially negotiated, but during construction, changes began to appear and the amount changed. I understand everything and was ready that it could come out a little more expensive, but not by $2000. Thanks to a friend who was able to settle everything and the amount exceeded only $500. I was also lucky to find an excellent furniture removalist in sydney who brought out all the furniture and did not ask for any additional payment for their work. Now I plan and refine everything very carefully so as not to get into such situations.