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Hello, I have signed a contract with a bathroom renovator

 
Sydney-Lawyer's Avatar
  • Answered by:Sydney-Lawyer
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Customer Question

Hello,
I have signed a contract with a bathroom renovator to renovate 3 bathrooms & a laundry. they have already completed 2 bathrooms, and when they were about to begin the third bathroom they told me they would need to replace the floor and it would cost an additional $4000 to our contract price.
When I asked why they did not tell me about this when they originally quoted they said the guy who quoted should have got under our house to make sure the floor was ok, but he was negligent and did not do that, and so they under-quoted. The guy who quoted has since been sacked by the company.
I feel that that they had the opportunity to scope the bathroom floor condition before finalising their quote and signing us up, but they did not do that so the underquote is their issue.
I'm prepared to pay half of the additional $4000, and share the costs with the renovator, but he is insisting he can add it on as a 'variation' to the contract and that I have to pay the whole $4000.
What are my rights in this situation and what should I do?

 

Optional Information:
State/Territory: NSW

Already Tried:
I rang Fair Trading and they told me I should ask the renovator where in our contract it states they are entitled to add variations on when they should have included it in their original quote. I did this and he did not answer the question. Fair Trading then told me I should write to the coy, saying that I am prepared to pay 1/2 the $4000, and giving them a date by which they should reply. I have not done this yet because I'm really concerned about getting the coy owner offside.

Submitted: 296 days and 15 hours ago.
Category: Australia Law
Value: AU$94
Status: CLOSED
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Expert:  Sydney-Lawyer replied 296 days and 15 hours ago.

Good Afternoon,


If the contract does not state that they have the right to amend the price due to unforeseen circumstances, or discovering additional works are required as the work progresses then they cannot increase the price of the contract.

If you were given a fixed price and you accept that quotation, they cannot amend it unless the contract allows them to do so.

You are well within your rights to negotiate with them but I would suggest that you explain that the contract does not give them the right to amend that you are prepared to negotiate the additional money.

If you put it in writing you make sure that you deny they have the right to increase the price but in order for the work to continue and finish you are prepared to make the following concession.

You leave offer open for a period of 7 days. And at the top of the letter you mark it "Without Prejudice" as this will stop them using it against you if you decide to take the matter to the CTTT to get a determination from them.

if you wish to discuss the matter with them before sending a letter then arrange for a meeting with the owner of the company and explain what you have been told and say that you are prepared to make a contribution of up to 50% for the floor.

If you agree to amending the contract then it can be amended.

If you do not agree they cannot simply make the changes if the contract does not permit them to do so.

I hope this is of assistance. If you have any further queries please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Customer replied 296 days and 14 hours ago.

Thank you - can I ask in relation to the following part of your reply - 'If you were given a fixed price and you accept that quotation, they cannot amend it unless the contract allows them to do so' -what the contract states is: 'The contract price may vary in accordance with contract conditions'. Within the contract conditions please see attached highlighted section in Part 3 - does seeing this change any advice you have given? (I have tried to upload the contract conditions but not sure if it worked) - thanks

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Expert:  Sydney-Lawyer replied 296 days and 13 hours ago.

Good Afternoon,


it depends very much on what the contract conditions are.

If the contract conditions that give them the right to vary the contract price because they find something that they could not have known all been made aware of at the time of the quotation then they may not be able to change the price because they were able access the floor from underneath and this was made clear to you by the company now, as an omission by the person who quoted.

I have not received the terms and conditions of the contract.

You need to read the part that relates to varying the price.

I hope this is of assistance. If you have any further questions please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Customer replied 296 days and 13 hours ago.

The contract conditions state that the contract can be varied, 'by agreement by both parties'. Clearly here, both parties are not in agreement to the change in price.


It also states: 'the contract price includes all matters that could be reasonably expected to be necessary for the completion of the work' which in my view would include the floor replacement since that was identified by a 5 minute inspection by the project manager (who then told me it needed to be replaced and that it would cost an addtional $4k).


 


BTW - your attachment function is not working - I tried to attach a copy of the contract conditions but you have not recieved them so something is not working.


 


Thanks for your help, Wendy


 

Accepted Answer

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Expert:  Sydney-Lawyer replied 296 days and 13 hours ago.

Good afternoon,


You are more than welcome.

You can rely on the fact that you must agree for the contract to be varied. If you decide to negotiate to try and resolve the issues make sure that it is clear that anything you put in writing is not able to be held against you if the matter proceeds further.

Good luck and if you have any further queries please not hesitate to contact me.

I will bring the attachment function error to the attention of the administrators thank you for that.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Expert TypeSolicitor
Category: Australia Law
Pos. Feedback: 96.1 %
Accepts: 16799
Answered: 7/6/2012

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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