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So, my builder tells me that one of his subs didn't bid my basement finish

Posted on 6/1/20 at 12:59 pm
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
118873 posts
Posted on 6/1/20 at 12:59 pm
Got an updated build sheet from my builder, and the cost of electrical was quoted at $18.5K, but the bill is going to be $32K. We are about 2 months from completion. When I asked why is this is so different from the original quote he tells me that the electrician didn't realize we were finishing the basement, and didn't quote it.

Yes, the builder was quoting the entire basement (and bonus room as finished space). I'm waiting to find out how we are going to handle this. What should I expect?

Bonus issue: The builder is going to be my neighbor, houses across the street from each other.
Posted by hiltacular
NYC
Member since Jan 2011
19665 posts
Posted on 6/1/20 at 1:05 pm to
$14k to include electric in the basement seems high.
Posted by Indfanfromcol
LSU
Member since Jan 2011
14723 posts
Posted on 6/1/20 at 1:07 pm to
Get backup documentation on the subs original proposal, and also exactly what your contractor asked them to bid. Subs like to double dip when they can. But you need to verify that your builder gave the sub a complete scope when they originally priced, and if so did your sub have any exclusions on their proposal that your builder missed. You shouldn’t have to eat the cost alone. There is a compromise somewhere in there.
Posted by JDPndahizzy
JDP
Member since Nov 2013
6416 posts
Posted on 6/1/20 at 1:09 pm to
That's an issue between your GC and his sub... That's why people ask for quotations.. But if it was a sincere error and you wanna be a nice guy tell him you'll meet him halfway.
Posted by Chad504boy
4 posts
Member since Feb 2005
166087 posts
Posted on 6/1/20 at 1:32 pm to
shouldn't have been difficult for a quality GC to have known the electrical quote was way off based on per sqft. bad error.
Posted by BestBanker
Member since Nov 2011
17473 posts
Posted on 6/1/20 at 1:59 pm to
Reads like the GC didn't do his best work in reviewing the information or submitting the information to the electrical contractor. Reads like he needs to work out a deal with the electrical contractor. Unless this is amended work order, it's not your obligation contractually.

Now, do you have a yearning to financially assist the GC? Mistakes to occur from time to time.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
118873 posts
Posted on 6/1/20 at 2:09 pm to
quote:

shouldn't have been difficult for a quality GC to have known the electrical quote was way off based on per sqft. bad error.


We had another quote from another builder and his was $21K, so I didn't view $18.5K as that far off overall.


Yeah, just waiting for the builder to get back with me to discuss. Us being neighbors complicates it a bit for me. I'm hoping we can work something out. All the other quotes have been pretty close, some over a bit, some under. I don't think he's trying to cheat me at all.
Posted by olgoi khorkhoi
priapism survivor
Member since May 2011
14834 posts
Posted on 6/1/20 at 2:18 pm to
quote:

shouldn't have been difficult for a quality GC to have known the electrical quote was way off based on per sqft. bad error.



I have a small commercial construction co, bid jobs all the time and this x 1000.

His story sounds like BS. He would have known immediately that something was off if the electrician came in that low. he would have then clarified the scope with him to make sure they were on the same page. He either didn’t do his job or he’s working you over. I’d ask him why he didn’t catch this huge discrepancy right away.

Edit: Also send the basement plans off to a couple electrical contractors and ask them to ballpark it for you.
This post was edited on 6/1/20 at 2:36 pm
Posted by cgrand
HAMMOND
Member since Oct 2009
38625 posts
Posted on 6/1/20 at 2:27 pm to
quote:

I don't think he's trying to cheat me at all.

he's not trying to cheat you, he made a mistake
Posted by Hawgeye
tFlagship Brothel
Member since Jun 2009
30912 posts
Posted on 6/1/20 at 2:34 pm to
quote:

Us being neighbors complicates it a bit for me. I'm hoping we can work something out.


Stop thinking like that. He may be thinking the same thing, but the opposite. “We are going to be neighbors, so he may trust me enough and I can dick him out of a bit more cash.”

If he is worth his salt, then he knows he is about to eat some cost for you being mis-quoted.
Posted by Chad504boy
4 posts
Member since Feb 2005
166087 posts
Posted on 6/1/20 at 2:36 pm to
quote:

We had another quote from another builder and his was $21K, so I didn't view $18.5K as that far off overall.


how do you know that 21k included basement?
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
118873 posts
Posted on 6/1/20 at 3:05 pm to
quote:

how do you know that 21k included basement?


I told the builder it was a finished basement. His overall numbers lined up with my current builder, but they each had some differences. For example, my current builder allowed $33K for cabinets, this builder was at 27K.

Had his been $30k and the other $18k I would have seen it and asked, as I did compare, but a few things were a bit different and I didn't see a huge disparity.

Also, I did ask for a few things that would not have been included, soffit lighting, additional cat6 and cable drops, etc, but I doubt my add ons would come to more than $2K.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37003 posts
Posted on 6/1/20 at 3:37 pm to
I've never built a house like this (the only time I have had new construction, it was with a production builder who then sold me a new completed house).

So I can't help you much.

I will say that I'm on the board for a non-profit that is building a facility, and there have been several times that the GC has come back to us asking for more money. We have not submitted any change orders.

Twice it was because a sub supposedly "mis-quoted". The other time. one of the subs flat didn't show up to work to start the job, next day told the GC he didn't have time to do the job, and the GC went and found another sub who wanted like $8,000 more.

I don't know how all that works, how bonds are involved, etc, but we basically told the GC he needed to get control of his subs and we weren't paying any more, especially since they are now 4 months behind schedule.
Posted by PotatoChip
Member since May 2014
3481 posts
Posted on 6/1/20 at 4:12 pm to
When I built my house, my builder let me know that it wasn’t bid by the sub to fully finish my shop. He also told me that they were going to finish it at no cost if they wanted to continue working for him(he builds a lot of houses). It’s not your fault they messed up their bid. That’s between the builder and the sub.
Posted by MikeBRLA
Baton Rouge
Member since Jun 2005
16448 posts
Posted on 6/1/20 at 6:20 pm to
quote:

It’s not your fault they messed up their bid. That’s between the builder and the sub.


Exactly. The only way it might matter is if this is a “cost plus” build.

If it’s not a cost plus, this issue shouldn’t even have been mentioned to you as it’s the builder’s issue to deal with. That’s what he gets paid for.

If this is a cost plus build, the builder still should be on the hook bc he didn’t choose the correct bid for the job. Again, that’s what he gets paid for. It’s ridiculous that he’s asking you to pay for his mistakes. What a racket.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
118873 posts
Posted on 6/1/20 at 7:03 pm to
quote:

If it’s not a cost plus


It is.

quote:

If this is a cost plus build, the builder still should be on the hook bc he didn’t choose the correct bid for the job.


We haven't really discussed ie yet, other than him to say that the electrician didn't quote the basement and he missed it before submitting it to me. I mentioned the disparity and that's when he commented, but we haven't discussed yet how this gets fully resolved.

Like I said, it's complicated as we are going to be neighbors, and I don't mind paying my bills and what I owe, but I did agree to his quote, and now it appears to be over $10K higher for one item, and we still have more work to do.
Posted by olgoi khorkhoi
priapism survivor
Member since May 2011
14834 posts
Posted on 6/1/20 at 7:11 pm to
quote:

but I did agree to his quote, and now it appears to be over $10K higher for one item, and we still have more work to do.



I understand the neighbor thing, that's a complicating factor. Be pleasant, but be firm. Tell him that's not going to work. You compared bids and chose him because of price. The $18500 was in line with other bids you got and he would not have your business had he been that high initially. Don't say much more than that, be quiet and let him suggest a resolution. You're not at fault, so put the ball in his court and see what happens.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
118873 posts
Posted on 6/1/20 at 7:24 pm to
quote:

Don't say much more than that, be quiet and let him suggest a resolution. You're not at fault, so put the ball in his court and see what happens.



This is sort of what I did, so it's excellent advice.
I just told him we could discuss this when convenient, so I am waiting on him to get back to me.
Posted by WM88
West Monroe
Member since Aug 2004
1579 posts
Posted on 6/1/20 at 9:32 pm to
Your cabinets and electrical are 2/3 of what I paid for my WHOLE house and land. I guess I'm stuck were I'm at for life.
Posted by baldona
Florida
Member since Feb 2016
20384 posts
Posted on 6/2/20 at 6:40 am to
Builders move all the time, they build live there 2 years and upgrade.

Worst case scenario you should pay 1/3, builder 1/3, and electrician 1/3. The other two idiots fricked up they should be eating some major costs here.
This post was edited on 6/2/20 at 6:41 am
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