Can a contractor increase the price of a job once the contract has been signed?
My church has contract with a local contractor in the state of Virginia. The initial work had begun and now the contractor is asking for an additional $2000 to complete the job. The original contract was for $7000. We have not made any modifications to the contract. Do we have to pay? Isn't he obligated to complete the job at the contract price?
Public Comments
- Only after notifying all parties on the contract that originated the contract . And not until then can they so called hit you with additional charges with out tell you of the pending new charges . So just keep your cell phone handy that they have the phone number to Handy .
- Does the contract contain a price escalation clause? Kind of hard to answer the question without knowing all of the facts. If there is no clause then they are stuck completing the job. However, if there is...well...you know the answer to that then, right?
- dependidng on what the contract says. there may be a line where that grants him the right. anyways if its not in the contract where the price is tentative, take it to court!!
- You only have to pay if your organization agreed to the extras, and signed a change order to the contract.
- Read the contract. Once it is signed, both parties are bound by it. There may be a clause in his contract that allows him to pass on additional costs, such as waste disposal fees, permits, delays caused by weather, increases in material costs etc. The only way to know what he can, or cannot, legally do is to read the whole contract, soup to nuts, CAREFULLY. (Just like you did before you signed it....... right?) Richard
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