Expert: Jim Lyon - 10/12/2008

Question
We had a addition completed to our home several months ago.  The last invoice we paid was in March, and we are expecting a final invoice that should amount to several thousand dollars.  There was extensive discussion between us about the overages-some poor estimating, and workers who were inexperienced and took long hours to complete tasks, etc.  Overages were high. We asked on several occasions for the final invoice and were assured that we would get it.  We still have not gotten the final bill. How long after a project is completed can the contractor bill us?  Can this bill be hanging over our head forever?

Answer
Hi Again, just following up and I wondered how things are going closing out your project?

Thanks, Jim

Hi
I am not aware of a limitation on how long after completion of your project the contractor can invoice you. Its pretty odd that the contractor isn't organized enough to put together the paperwork to get paid.
It might be worth your while to consult an attorney to find out the law on this matter and to find out how to get the contractor to final bill you.
A few thoughts on the final bill you will receive:
Based on your experience with this guy so far, you will likely get a bill with a lot of unsubstantiated charges, such as "Frame wall, $2,400." . It will be your job to compare the bill with any written change orders that were prepared during the job.  You may also have some verbal agreements regarding changes and "overages". (Always put all agreements before and during the job in writing, even if the cost is still to be determined, such as when the change will involve paying by the hour)
Regarding "overages", you are not responsible for the contractor's poor estimating, but you may have already agreed to pay certain extra charges in order to keep the job moving or because you felt pressured.  If the amount of these charges is more than your expectation, you would want to negotiate a reasonable amount for each one with the contractor.
You can complete some homework before receiving the final bill- here's what I would do:
Make a list of all changes that happened during the job. For each one, write down what your understanding was about how it would be handled. Take a stab at what you think each change might cost you, at least write down a high end and a low end such as $500-$1,000.
When the bill comes in, compare it in detail and match up his charges to your list as much as possible. Ask him for clarification and more detail wherever you are unclear about how the bill was put together. It is reasonable to expect a breakdown of all charges when you are being billed by the hour.
If you are overwhelmed by the final bill, it would definitely be advisable to consult an attorney.
Hope this helps.

Jim Lyon