Can a contractor change the bid amount after a project is complete?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a contractor change the bid amount after a project is complete?
If I receive a bid for a business remodel, is that the amount I would expect to pay the contractor? At least as long as I did not change the design after the contract was in place and construction began?
Asked on November 28, 2011 under Business Law, South Dakota
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
It depends entirely on what the bid says. Was it a "firm" bid? If so, then if you did not change the specifications, then the contractor should not be able to increase prices, unless and only to the extent that the bid itself provided for certain increases. (For example: say it the bid was for $50k for labor plus the cost of materials; if the materials cost went up since the bid, that could justify an increase.)
However, it is not required that a bid be absolutely firm: a bid could represent merely an estimate, with the actual cost to be determined with reference to some formula. For example, it could estimate the number of hours of work and provide a cost/hour, but the final cost would depend on actual hours expended.
The law does not specificy whether a bid be binding or firm or not; again, you need to review its terms. If in doubt or there is disagreement over what the terms mean, you should enlist an attorney to help you; a lawyer would need to review the bid and other documentation in detail to help determine what your rights are.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.