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José M.
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How much (%) is a company allowed to exceed a estimate of cost

Resolved Question:

How much (%) is a company allowed to exceed a estimate of cost on a particular job when the estimate was given as tender to decide who will do the job and a discount has been given on the estimate in order to get the job
Submitted: 1 year ago.
Category: Spain Law
Expert:  José M. replied 1 year ago.

Attorney3044 :

Hi

Attorney3044 :

You do not have to admit a cent more further than yhe sum in the prevouos budget

Customer:

Hi

Attorney3044 :

If the company gives you a budget they are forced to do the job in this price

Customer:

The thing here is it was always an estimate and not a quotation

Customer:

still there

Attorney3044 :

I see, if you do not have a previous budget you two will need to find a point of agrement

Attorney3044 :

If they give an estimate sum, they could justify the further expenses and you admit it or not

Attorney3044 :

As long as they could justify the expenses they will have the right to get the money

Attorney3044 :

I recomend you to negotaite and ask for the justificatiuons of the expenses

Attorney3044 :

If you do not agree with that, you can force them to demand you in court

Customer:

I have been given a discount on the original estimate and this estimate has been used to make a decision on which of all the companies that tendered for the job will get the tender but now the final price is 30% more than the estimate and my feeling is that there should be a reasonable % in which an estimate should stay otherwise the estimate means nothing

Attorney3044 :

If you considerer than they are no right to charge you with more money, just do not pay. Once they have got the client in base a budget, they are force to make the job in this price. You could say in court that they have make a big discount and they are asking you for more money, and it is really not fear

Attorney3044 :

Treath them without pay and I am sure they will reduce the price before demand in court, becuase in court they asume a lot of riskes and expenses

Customer:

Thank you for your help.

Attorney3044 :

So your position is very good, just do not pay if you considerer that the sum its not fear and force them to study the riskes of demand you or negotiate

Attorney3044 :

Thank you, XXXXX XXXXX not forget to rate my service

José M., Attorney
Category: Spain Law
Satisfied Customers: 4975
Experience: Spanish Attorney
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