Cost plus construction contract (new home construction)

[Unregistered]

As a stipulation from my lender on a new home const. loan, I entered a contract early with my builder. ( I wanted to wait until after I was approved.) After the lender viewed the contract which was cost plus - they required a "max price" from the builder. The builder refused, so the bank would not approve the loan for my home. Now i need to get out of the contract.
Is this the builders fault? Is he breaching the contract by not providing the bank with all needed/required info?
Is this my fault? After he refused to put a cap on the price I feel he was probably being dishonest with me about the actual cost to build and I do not want to use him as a builder any longer.
He also refuses to give me the $1000 deposit back.
What do I do?

[Unregistered]

re: Cost plus construction contract (new home construction)

You could try to sue him in small claims (or other court) arguing he had a duty to provide some kind of reasonable cap--and his failure to do so damaged you. And he certainly should not then keep your deposit.

[constructionkfupm]

re: Cost plus construction contract (new home construction)

HELLO SIR,

I AM A STUDENT OF KING FAHD UNIVERSITY OF PETROLEUM AND MINERALS, DHAHRAN SAUDI ARABIA. I AM PURSUING MY MASTERS IN CONSTRUCTION MANAGEMENT. I AM DOING MY THEIS IS "A SYSTEMATIC SELECTION OF AN APPROPRIATE CONTRACT TYPE USING ANALYTICAL HEIRARCHY PROCESS", I AM AT A STAGE WHERE I NEED TWO THINGS

1) FACTORS FOR SELECTION OF A CONSTRUCTION CONTRACT TYPE

2) TYPES OF CONTRACT TYPES AVAILABLE IN CONSTRUCTION INDUSTRY

IF ANYONE CAN PROVIDE ME WITH ANY MATERIAL OR LINK TO IT, THEN I WOULD REALLY APPRECIATE IT.

THANKS

[Unregistered]

re: Cost plus construction contract (new home construction)

You might also email world law directly and ask for one the construction lawyers to consult with you.

See also this book--- Construction Contracts: Law and Practice price comparison

What kinds of contracts are you discussing? BOOT contracts, project finance, large scale dev etc.?

[constructionkfupm]

re: Cost plus construction contract (new home construction)

THANKS SIR FOR YOUR REPLY,

ACTUALLY WHAT I AM REFERRING TO ARE TYPES OF CONSTRUCTION CONTRACTS LIKE LUMP-SUM, FIXED PRICE, COST PLUS ETC. NOW MY THESIS BASICALLY INVOLVES FINDING OUT FACTORS WHICH ARE RESPONSIBLE FOR SELECTION OF A CONTRACT TYPE, ESSENTIALLY FROM OWNER'S POINT OF VIEW, FROM THESE AVAILABLE FACTORS. IF YOU CAN GUIDE ME TO USEFUL RESOURCES FOR THE SAME, I WOULD REALLY APPRECIATE IT.

THANKS

[Shirley44]

Re: Cost plus construction contract (new home construction)

Hello,

Are u guys serious?

If the guy does not pay, the contractor has the right to go back on the property and undo their work.

If the materials are no paid for, they can take the materials back.

As it is all owned by the contractor until full payment is recieved.

Its as simple as waiting for the resident to go out. Then the contractors goes in while they are not there and disassembles everything.


Thanks
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