How I calculate Additional Charge

Additional charge is for items not included in the scope of work. This work could include adding more area to the scope of work, changing material originally specified, changing hours of work, being forced to work overtime, client stops the work, the home is destroyed through no fault of the contractor, job start is delayed by the owner causing different jobsite conditions than bid, … you understand the list is endless.

Charges for this work include the labor, material and equipment required to complete the work. The first part of an “extra” charge is the written explanation for the charge. The second part is an itemization for the charges. The third part is the summation of charges.


Why An Additional Charge?

This is a review of the infamous triple play. The scope of work detailed material by manufacturer, color and part number. The contractor received the contract and a check for 40% of the $10,000 contract. The contractor spent $3,500 to purchase the material exactly as the owner had specified.

The contractor brought the material to the jobsite and installed half by the time the owner returned home at the end of the workday. When the owner saw the material color, it was not the result expected. The owner told the contractor to remove the material and install a different color. The store confirmed the availability of this new material and the contractor could pick the material up in the morning.


Reasons For An Additional Charge

1) The contractor gently reminded the owner the material installed was exactly as described in the scope of work and the owner had not included a catalogue cut with the material circled.

2) The additional charge to the owner would include:

• All costs for labor and equipment for the time spent on the project.
• All costs for labor and equipment to remove the material to cause the least damage and return the material to the supplier.
• Restocking charge (30%) for the unused portion of the material and credit for the portion of the material the supplier is able to salvage (17%).
• The job will restart when the owner pays these itemized charges and a new check for 40% of the $10,000 contract is issued (cost for new materials is the same).

3) Estimated costs for the additional work to the owner are $4,500 for the contractor's labor costs and $2,500 for the material costs.

Items included in this contractor ESC should be standard for any GREEN flooring project that includes a scope of work and contract documents the contractor signs when submitting his bid.

Result

The owner spent approximately $17,000 for the original $10,000 project due to the triple play. The owner could avoid these additional charges with the proper research and preparation. Again, please do not allow this to happen to you.

What is your experience with a contractor's extra charge? We would really like to hear if you felt the contractor took advantage of you.

Return From Additional Charge To Work With Contractors

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