Malka & Kravitz, P.A. - Your Construction Law Firm
South Florida Construction Attorneys
Phone: 954-828-2807 | Toll Free: 888-341-9053

CONTACT FORM

super-lawyers
Distinguished AV LexisNexis Martindale-Hubbell Peer Review Rated for Ethical Standards and Legal Ability
Listed In Best Lawyers The World's Premier Guide
South Florida's Top Rated Lawyers
Certified The Florida Bar Construction Law
The Best Lawyers in America
The Associated General Contractors Of America
The Associated General Contractors Of America
ABC Associated Builders and Contractors Inc Member

Why do construction jobs go over budget?

| May 10, 2017 | Construction Law |

One of the most common reasons for a construction dispute is simple: The project runs over budget. The homeowner doesn’t want to pay any more, but he or she also doesn’t want the company to stop before the job is done. At the same time, the company doesn’t want to just eat those costs.

A project can run over budget for a number of reasons; a few examples are below:

1. Prices go up.

If there is a long delay between the start and completion of a job, the prices of materials could simply change. This means that an accurate quote a few months before the project is far off by the time purchases are made.

2. Costs are left out.

In some cases, estimates don’t take everything into account. For instance, the quote could include the labor and materials, but it could leave out the cost of permits. The quote wasn’t inaccurate, but it simply didn’t cover everything it was supposed to cover.

3. Allowances are too small.

The general contractor may work with subcontractors on the job, allotting them a certain amount for materials. The subcontractor may then come in and spend too much, saying he or she couldn’t possibly do the job the right way with the money that was in the budget.

4. Unforeseen issues.

Construction projects are notorious for unpredictable issues that have to be addressed. This is especially true when renovating older homes.

Budget disputes can get ugly in a hurry, with neither side wanting to give an inch. If the case ends up in court, it’s incredibly important to know your legal options, especially since projects can stall out until the dispute is resolved.

Source: Building Advisor, “Why Jobs Go Over Budget,” accessed May 10, 2017

Archives

subscribe to our newsletter /
locationImg

OFFICE LOCATION

Malka & Kravitz, P.A. - Your Construction Law Firm

1300 Sawgrass Corporate Parkway
Suite 100
Fort Lauderdale, FL 33323

Toll Free: 888-341-9053
Phone: 954-828-2807
Fax: 954-514-0985
Map & Directions

| Email Us For A Response
super-lawyers
Distinguished AV LexisNexis Martindale-Hubbell Peer Review Rated for Ethical Standards and Legal Ability
Listed In Best Lawyers The World's Premier Guide
South Florida's Top Rated Lawyers
Certified The Florida Bar Construction Law
The Best Lawyers in America
The Associated General Contractors Of America
ABC Associated Builders and Contractors Inc Member