Building Contract Agreement question?

Question

If a builder's contract says the following:

"Builder will make changes to the Plans and Specifications after Owner's written authorization to Builder for such changes.."

does this mean that ANY changes to the contract, including cost overruns, has to be approved by me? For example, if a septic system was budgeted for $9,000 but actually cost $19,000, would it be required for me to give signed consent for this overrun? Because my builder spent $36,000 in overruns without my knowledge or signed consent. Do I have a legal leg to stand on here? Thanks for your help.

Answer 1

I assume that the builder is actually a general contractor that is building the house on your land.

If this is the case, you are 100% responsible for any cost overruns.

If you are buying a house in a subdivision and when it's finished you settle, then any cost overruns or expenses not agreed to up front is the builders respons.

I'm sure there is more to this story then you posted.  However, based just on what you have posted, this has to due with changes and not money.  The builder will only make changes if they are in writing.  For example: we offer a standard house with set options.  If you want to add or change something (like an extension), this request MUST be in writing and signed by both parties.

Answer 2

You are in a position to get screwed.  If only we could absolutely know that our builder was not only a great guy and a great builder but that he is a wonderful human being.  

He is supposed to get your approval for any changes.  It works both ways.  It is a warning to you not to swamp him with requests to "add an outlet here", etc.

The thing i need to know is if the overruns added to the value of your house.  THey may have added $46,000 in value.

Answer 3

Your contract is maybe 6 pages long and you need to go to a lawyer with it.