My question involves a consumer law issue in the State of: California.
Hello,
We have a small tile business, and many of our jobs are small enough (~$4k and under) that we don't require a down payment or progress payments, but simply state in the contract that payment in full is due upon project completion. My question is, can I state under the price and payment terms something to the effect of: "In the event that Owner causes unreasonable delay, Contractor may demand payment for work completed prior to said delay."
For example, we were working on a backsplash but could not complete it because the owner needed to have a window replaced. As it turned out, she had yet to even contact anyone for a quote on replacing the window. The contract stated payment in full upon completion. So far, there has been a 2 month delay. We fulfilled all of our contractual obligations up until the delay. But we are in the position of having purchased tile and other materials and put labor into the job, with a contract that I don't think accounted for this. ( did it? See below).
Our terms and conditions section somewhat addresses this, but really not to my satisfaction (see "acts of neglect or omission of Owner"):
"DELAYS. Contractor agrees to start and diligently pursue work through to completion, but shall not be responsible for delays for any of the following reasons: failure of the issuance of all necessary building permits within a reasonable length of time, funding of loans, disbursement of funds into funding control or escrow, acts of neglect or omission of Owner or Owner’s employees or Owner’s agent, acts of God, stormy or inclement weather, strikes, lockouts, boycotts, or other labor union activities, Extra Work ordered by Owner, acts of public enemy, riots or civil commotion, inability to secure material through regular recognized channels, imposition of government priority or allocation of materials, failure of Owner to make payments when due, or delays caused by inspection or changes ordered by the inspectors of authorized governmental bodies, or for acts of independent contractors, or holidays, or other causes beyond Contractor’s reasonable control."
Thank you very much in advance for any insight.
Hello,
We have a small tile business, and many of our jobs are small enough (~$4k and under) that we don't require a down payment or progress payments, but simply state in the contract that payment in full is due upon project completion. My question is, can I state under the price and payment terms something to the effect of: "In the event that Owner causes unreasonable delay, Contractor may demand payment for work completed prior to said delay."
For example, we were working on a backsplash but could not complete it because the owner needed to have a window replaced. As it turned out, she had yet to even contact anyone for a quote on replacing the window. The contract stated payment in full upon completion. So far, there has been a 2 month delay. We fulfilled all of our contractual obligations up until the delay. But we are in the position of having purchased tile and other materials and put labor into the job, with a contract that I don't think accounted for this. ( did it? See below).
Our terms and conditions section somewhat addresses this, but really not to my satisfaction (see "acts of neglect or omission of Owner"):
"DELAYS. Contractor agrees to start and diligently pursue work through to completion, but shall not be responsible for delays for any of the following reasons: failure of the issuance of all necessary building permits within a reasonable length of time, funding of loans, disbursement of funds into funding control or escrow, acts of neglect or omission of Owner or Owner’s employees or Owner’s agent, acts of God, stormy or inclement weather, strikes, lockouts, boycotts, or other labor union activities, Extra Work ordered by Owner, acts of public enemy, riots or civil commotion, inability to secure material through regular recognized channels, imposition of government priority or allocation of materials, failure of Owner to make payments when due, or delays caused by inspection or changes ordered by the inspectors of authorized governmental bodies, or for acts of independent contractors, or holidays, or other causes beyond Contractor’s reasonable control."
Thank you very much in advance for any insight.
Construction Contracts: Can a Contractor Require Partial Payment When Completion is Delayed by the Client
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