Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 8 years ago on . Most recent reply

User Stats

56
Posts
11
Votes
Ronny Crawford
  • Investor
  • Marietta, GA
11
Votes |
56
Posts

Legal Advice on Change Orders

Ronny Crawford
  • Investor
  • Marietta, GA
Posted

Hello fellow BP community!

Does anyone have any experience and advice regarding Change Orders that were completed prior to and without approval from the Owner?

I recently received two rather large change orders on a flip project.  I noticed via photos online that many of the change orders were already completed without my knowledge or approval.

I declined the change orders and have tried discussing with the contractor.  They state that per code and engineer's drawings the work must be completed in order to pass inspection.  While this may be true, my contract clearly reads that change orders must be approved by both Owner and Contractor in order to complete the work.

Am I liable to pay for Unapproved yet Completed work from change orders?  If not, how should I proceed?

Thanks!

Most Popular Reply

User Stats

276
Posts
169
Votes
William Murrell
  • Investor
  • Wilmington, NC
169
Votes |
276
Posts
William Murrell
  • Investor
  • Wilmington, NC
Replied

I am not an attorney, but I have had plenty of experience with contractors.  In our case, if the contract specifically stated, as yours did, that the change order must be approved by the owner, then they didn't really have a leg to stand on when it came to demanding more money.  And as far as "we need this to pass code" then that should definitely have already been included in the scope!  No reasonable contractor should ever give a bid to build something at one price with extra fees to do it to code.  Either you build it to code or you don't.  They ought to know that by now.  I'd consult with an attorney and I would also find another contractor.  This is classic "got you over the barrel" unscrupulous contracting at its finest.  Unless of course your scope spec'ed out something not up to code and he refused to build it.  But that's not the case, right?

  • William Murrell
  • Loading replies...