Easily Remove Currency from the General Contractor Agreement

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How to Remove Currency from the General Contractor Agreement

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good day my name is Mark Melora Im with Melora law firm and I wanted to speak with you today about a topic that many of my homeowner clients come in to see me about and this is a case a topic where homeowners are facing a contractor subcontractor or general contractor whos come to do work a work of home improvement on their home either improving their kitchen the bathroom doing some outside work in their in their backyard in terms of building a wall or something of this nature and so these are works of home-improvement but now the contractor or subcontractor has filed what we call a mechanics lien on your project and youve gotten notified by the county recorders office and in your viewer city or your county about the recording of the mechanics lien and what do you do in that case I find many times my homeowners are very concerned that theyve got a lien against their property and they become panicked and paranoid what to do about that can they take their home from them and they st

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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What are the benefits of GMP vs lump sum?

Unlike a lump sum contract wherein a contractor is paid a flat fee for the work, the guaranteed maximum price contract allows the owner to potentially save money if the project ends up costing less than estimated.

What is GMP in money?

Guaranteed Maximum Price (GMP) Contracts Explained Also known as not-to-exceed price contracts, these agreements require customers to compensate contractors for their direct costs and a fixed fee for overhead and profit, but only to a certain threshold.

What is the difference between lump sum and GMP?

A lump-sum contract is when the price will be for a set amount regardless of what the contractors actual costs may be. In contrast, with a GMP contract, the owner pays the contractors actual costs plus the profit. The project costs are capped at the price maximum.

What to do when contractor asks for more money?

Ask the contractor to explain why the price rose so dramatically from the initial estimate. He will likely say something about unexpectedly high expensive labor and materials. Request an itemized invoice, explaining that you do not feel comfortable remitting any payment until you can further examine this issue.

Why would a developer ever use a lump sum contract in lieu of a GMP?

The owner can expect the project to be completed within budget and often more quickly so that the contractor can maximize resources and save on labor costs. Lump sum contracts also render little financial risk for owners as the contractor is responsible for any cost overruns.

What is the difference between fixed price and GMP?

GMP vs. A GMP contract differs from a fixed-price contract, such as a lump sum contract, in that, for the latter, the price remains the same no matter how much a contractor spends to complete the project. GMP contracts are more flexiblethe property owner will reimburse the contractor for expenses up to the maximum.

Can you ask for money back from the contractor?

Contractors often ask for a deposit or down payment of up to a third of the total project cost. If a contractor does poor-quality or unfinished work, you can ask for a refund. You can protect yourself by paying the deposit via credit card or check.

How do I get my money back from work not done?

File a Small Claims Court Suit You can file a small claims case yourself or have an attorney help you. Typically homeowners consider small claims court after theyve tried arbitration, as there are fees to file a suit. Some contracts even dictate that you must pursue arbitration before taking legal action.

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Remove Currency from the General Contractor Agreement