Do I owe my general contractor 20% of my total bill to cover overhead and profit if it is not stated in any of our contracts or change orders?

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Do I owe my general contractor 20% of my total bill to cover overhead and profit if it is not stated in any of our contracts or change orders?

He has never once asked for this in the 4 months he has been working on my house. Now that the job is almost done he is asking to be paid this amount. I will be receiving a check for this about from my homeowners insurance but again I have never agreed to pay this to my GC.

Asked on June 20, 2015 under Business Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, if there is an agreement or agreements as to the cost, especially a written contract and/or written change orders which indicate price/cost, the contractor is bound by them; one party to an agreement (i.e. the contractor) may not unilaterally (on his own; without your consent or agreement) change the terms of the agreement or increase the cost.


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