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contract law: binder fee question



marklevinson1@yahoo.com (Mark)
3/8/2004 8:38:42 AM


Hi,
I have been in the process of building a small addition (120 sq. ft)
on my house and remodeling my kitchen. I had been using a general
contracter who works with an architect. I had signed a binder fee
contract to begin the process. It was $2,500. In order to begin with
the architect the builder asked for $3,500. My wife and I informed the
builder that we had a budget of $50,000 for this project. The
architect produced 2 drawings. One being within our budget and one
which would cost more, maybe around $70,000. We didn't like either
drawing completely and I ended up making revisions to the drawings to
produce a combination of the 2 we could live with. The builder told me
that the changes I made were "ambitious". I suggested that I take on
some of the labor in order to bring my costs within the $70,000 or
less range and the builder agreed that this would be workable. The
architect produced what I believe are final drawings. The last
meeting I had with the builder involved the line item costs (which
were not at all detailed, just general paragraphs). His estimate came
to $112,000 not including kitchen cabinets, flooring and other
incidentals. A difference of $40,000. We told the builder we need to
put the project on hold as it would be not be possible within our
budget. I just received an invoice for the drawings from the builder
for $1,750. I want to sever my ties with this contractor and use the
plans myself. As the builder has not really done any real work yet
(other than a few meetings and a cost estimate), can I ask him to just
put the binder fee towards the architects final fee?
Thank you for your reply,
Mark
 
 
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