I am a Canadian construction contractor with 15 years experience…

Hello,
With respect to your specific questions:

1) Actually, maybe it is possible. In so far as you can prove the existence of the underlying contract it may be possible to have the client also be responsible for paying for additional work (which is materially unrelated to the original agreed-upon price). You would first need to prove the existence and terms of the agreement and that there was, in fact, agreement AND that the "additional" work was both additional and unrelated to the underlying work (meaning it was not work that would have been forseeably necessary in order to comply the original contract -- FOR EXAMPLE, if you agreed to remodel a bathroom which involved putting in a stand-up shower, having you fix a staircase would not be related, but moving electrical in the bathroom to accommodate the new shower - even if you didn't know you would have to do that before you started, would be included even if it wasn't specifically written in the original agreement)

2) If you refer to the labor charges relating to the additional work, see above reply (1). If, however, by "increasing labor charges", you mean an increase in the hourly cost of your workers due to outside factors, then those are not something you can legally go back to a client on and have them pay or even if you has a written agreement necessarily get out of the agreement for unless you can prove to a court that (a) these increases were unforeseeable by a reasonable contractor, (b) in fact unforeseen and (c) would constitute a material change in circumstances to the overall agreement. The remedy here would be getting you out of the agreement, however, not forcing the customer pay.

3) Your assessment is close on this point. Assuming this agreement can be proven your failure to complete it would constitute a breach which would be compensable. However, you have a counterclaim for the amounts due you and if you can establish an agreed-upon payment pattern as being part of the agreement, you may be found justified in refusing further performance due to the non-payment. The key to the counterclaim would be proving (a) that there was a payment agreement made and honored, (b) that the customer was not now honoring it and (c) that such failure would constitute material breach of the agreement. (I'm not terribly confident that this could be proven to a Judges' satisfaction but it is possible to make a persuasive argument in that favor if the facts exist with respect to pattern of payment and its correlation to work and materials).

4) Your assessment is reasonable here. Likewise the underlying agreement will need to be proven. However, if the customer is current on payments, walking away from the agreement would result in your breach of the agreement and the customer can pursue you for the reasonable costs to finish the project (which need not be the same costs you would have been owed and could be more).


The key to this case, therefore, is proving the existence of the agreement. While Verbal Agreement are binding, professional service agreements and work agreements done verbally (and arguably ANY verbal agreement) are exceptionally difficult to prove with any sort of reliability. The existence of a writing is helpful (even if unsigned) but you would need to prove both parties' compliance to the letter of that agreement. For example, if - using the previous example - the contract were for renovating a bathroom and in the written agreement the customer would have paid 25% up front, 25% in 2 weeks, 25% 2 weeks thereafter and the balance on completion, and the customer paid 25% up front, 25% in the 2 weeks and is now refusing to pay the next 25% you could argue - perhaps credibly - that the customer had agreed to the writing because he was acting in accordance with the written agreement and such would show accord with the writing. The difficulty is that the writing is not itself binding but a guide for the Judge to determine the full scope of the agreement itself.

My recommendation is to get in touch with a local civil lawyer and have them look at the entire situation and see whether this can be resolved with a bit of negotiation (because the court battle would likely take a fair bit of time to get to).

Also, going forward, you really need to be sure to have a written and signed agreement detailing everything as well as stipulating that additional work will be billed and contracted separately.

Regards XXXXX XXXXX wishes on resolving this amicably,