itemized list of contractor material & labor costs

[Dan Clark]

I have just rehabbed a home in San Antonio, TX. I will be selling this home soon. It is now under contract. I did not use a GC for this rehab. I had my RE agent act as the project manager. The problem I have is that the last invoice that I have received from one of my contractors makes no sense. I sense some financial impropriety.

The question I have for the community is: 

Is there a Texas law that allows for me to get an audit of the material and labor costs? I want this from my contractor so I can try and make sense of his invoices and try and detect why his last invoice made no sense and whether there is any scam being played.

[J Scott]

Did you negotiate a price upfront?  Did you have a payment schedule?

Assuming the answer to those two questions is yes, there shouldn't be a problem -- pay him based on the agreement.

Assuming the answer to one or both of those questions is no, that's where you made a mistake.  You should negotiate a fixed price upfront -- if that includes materials, you either roll the materials into the total cost, you agree to an allowance for those materials or you agree to a reimbursement of direct costs (in which case he should provide receipts).  And you should clearly define what the payment schedule is so that both sides know when and how much is owed.

Can you elaborate on how you structured the contract such that this became an issue?