What to do when a contractor pulls a huge number out of the hat after the fact?

[Joe S.]

 So we got a call from our property manager and said that the toilets were backing up.  She sent a reputable plumbing company out and they gave us a $9000 bid to do excavating, repairs, etc. due to some roots getting in some plumbing under the house. We thought that was a bit high.
My wife talked to a plumber we had used on a couple of jobs in the past that was reasonable. He went out there and told her that he would take care of it and the price would be reasonable. She said how much and he said he wouldn’t know until he got started. Whereas we have used him before on stuff we were thinking he would be well below the other bid.. Now after the fact, he sends us a bill that basically outlines taking care of all the same things the other bit mentioned, but he is  wanting 23K after the fact.  Obviously, we never would have used him if we would have known he would’ve pulled a stunt like that. We did not agree to pay him that much and feel like he took advantage of us not getting the firm price on the front end. We are not sure how to handle this, but I’m considering talking to counsel as far as an attorney goes. My wife sent him the original bid of the other plumber and he has not got back with us yet. I think this is extreme price gouging, especially since we did not agree to pay that kind of money and if he was expecting that kind of money, he should not have awaited to the very end to tell us.  Basically he’s burning the bridge down for all future work that we can do together as well.

I believe in paying our contractors and I’ve never had an issue in 20 plus years. I’m not an upstart investor looking to shaft somebody. At this point in time unless he comes way down off of his invoice I don’t see any way around this getting ugly.  Has anyone dealt with something like this before?

[Don Konipol]

Quote from @Joe S.:

 So we got a call from our property manager and said that the toilets were backing up.  She sent a reputable plumbing company out and they gave us a $9000 bid to do excavating, repairs, etc. due to some roots getting in some plumbing under the house. We thought that was a bit high.
My wife talked to a plumber we had used on a couple of jobs in the past that was reasonable. He went out there and told her that he would take care of it and the price would be reasonable. She said how much and he said he wouldn’t know until he got started. Whereas we have used him before on stuff we were thinking he would be well below the other bid.. Now after the fact, he sends us a bill that basically outlines taking care of all the same things the other bit mentioned, but he is  wanting 23K after the fact.  Obviously, we never would have used him if we would have known he would’ve pulled a stunt like that. We did not agree to pay him that much and feel like he took advantage of us not getting the firm price on the front end. We are not sure how to handle this, but I’m considering talking to counsel as far as an attorney goes. My wife sent him the original bid of the other plumber and he has not got back with us yet. I think this is extreme price gouging, especially since we did not agree to pay that kind of money and if he was expecting that kind of money, he should not have awaited to the very end to tell us.  Basically he’s burning the bridge down for all future work that we can do together as well.

I believe in paying our contractors and I’ve never had an issue in 20 plus years. I’m not an upstart investor looking to shaft somebody. At this point in time unless he comes way down off of his invoice I don’t see any way around this getting ugly.  Has anyone dealt with something like this before?

The most likely scenario is that you refuse to pay him, or make him an offer he doesn’t accept, and he files a mechanics lien on the property. 
Here’s my question; did you inform the contractor before he began work of the $9,000 bid from the other contractor, either in writing or verbally? 

 Without a contract in place, and with no prices being quoted, or estimates made beforehand, we have what’s essentially an after the fact negotiation.  So, $23,000 is the contractor’s ASKING price.  Your response should be 

1- what is your hourly rate?

2- how many hours did you put into the job?

3- what is the cost of materials?

4- what is your markup on materials?

5- how many workman were on the job, what hours did each put in

6- how many of the workman are LICENSED plumbers?

7- what is your rate for licensed plumbers vs unlicensed “helpers”

You see where this is going.  If $23k is just a “hope and a prayer” then he’s going to have a very hard time producing any CREDIBLE itemized bill.  

Here are the steps you need to take AFTER receiving the contractors response to the above

1. Pay for 2 hours consultation time from an attorney experienced in contractor real property law (if you don’t know of an attorney contact me and I will provide a referral) to understand the specific applicable laws, the risks, and potential costs

2. Based on 1. above determine the maximum amount your willing to pay to avoid a lawsuit and the realistic “target” amount you’d want to pay given what you learned from the attorney consultation

3. Have your attorney send your contractor a letter explaining your dissatisfaction, any legal, ethical, or moral violations his operating methods result in, and making him an offer BELOW your “target” amount

best of luck