New Construction - Post contract signing - Builder trying to hit Moms up for more money for lumber price increases. (1 Viewer)

[STEADYMOBBIN 22]

Builder approached my mother back in February to get her to sign her contract "to avoid the lumber price increase". Yesterday she receives a call saying they they want another $30k because lumber prices have increased. 

Just curious if others have experienced this or if there is anything she can do. I assume there's a stipulation in the contract but just checking to see if anyone else has experienced this? Shes sending me the contract for me to look at but Im not a lawyer. 

 

[Deranged Hermit]

Lumber prices are sky high right now. I'm a carpenter, primarily commercial,  but I do a lot of residential side work, and I've backed off a bit from the side work because of the sticker shock. 

Anyway, that seems pretty shady of the builder, especially since this increase started before February,  so it was already known. You need to look closely at the contract because I've never heard of this before. 

 

[El Floppo]

Yep all four projects I'm on right now (Hamptons and RI shore) have had the contractors come back hurting from the price jumps. 

It's not somebody trying to pull a fast one on your mom. 

Hehehehe....yer mom.

 

[Tom Hagen]

Builder approached my mother back in February to get her to sign her contract "to avoid the lumber price increase". Yesterday she receives a call saying they they want another $30k because lumber prices have increased. 

Just curious if others have experienced this or if there is anything she can do. I assume there's a stipulation in the contract but just checking to see if anyone else has experienced this? Shes sending me the contract for me to look at but Im not a lawyer. 

I know a residential builder and this is an enormous problem lately. By the time he gets through permits and approvals the lumber costs have doubled in some cases.  The contract allows him to charge the customer but that’s not really a practical solution in some cases. Usually they will agree to split the costs or try to make some changes elsewhere to save some money. 
 

ETA: Part of the problem is that the Suppliers have significantly cut down on the amount of time they will honor prices so you can’t even order for future delivery and lock in the price.

 

[STEADYMOBBIN 22]

My issue is they’ve already made their order. Lumber package is supposed to arrive this Monday so IMO they’ve already purchased it and paid for it so why are they hitting her up now? If the lumber actually arrives Monday then I’m going to have a word with them. I believe they’re just trying to mitigate their costs on future purchases. 
 

 

[cheese]

My issue is they’ve already made their order. Lumber package is supposed to arrive this Monday so IMO they’ve already purchased it and paid for it so why are they hitting her up now? If the lumber actually arrives Monday then I’m going to have a word with them. I believe they’re just trying to mitigate their costs on future purchases. 
 

I would probably stand your ground.  They’re not lying to you about the lumber price.  With the margins on new construction though, it’s very likely they are still making money even if they take a big hit on the houses sold the last few months. I’m sure they raised their prices by now. They certainly wouldn’t have cut your mom a check if their cost of goods went down instead of up. 

 

[IC FBGCav]

This will sound dumb, but words don't matter if they signed a contract.  Look at the contract.  I'm not a lawyer but I have stayed in a Holiday Inn Express.  

If nothing is written then it goes on the verbal agreement.  Which sucks cause it is he said she said.

 

[whoknew]

What does the contract say? Does it give them the right to ask for more if prices rise?

 

[BassNBrew]

Yur momma is so fat that lumber costs quadrupled to build a house for her.