Cost Plus contract dispute

[D_Mundy]

My husband and I entered into a cost-plus home construction contract with a builder last summer. The estimated cost was between 170,000 and 210,000. We added a pool with an additional cost of $20,000. We asked and were told on a weekly basis by our builder that we were considerably under budget. Two weeks prior to closing we were hit with the bombshell that we were about $40,000 over budget. We had requested a few additional items (since we thought we were "under budget") that amounted to about $10,000 -$15,000 at a maximum. (My husband sells building materials and is very aware of material costs.) Our contract told us that he didn't have all the invoices in yet but that he would go ahead and estimate a bit high and that we should proceed with closing. We got to closing and when the contractor's wife was presented her check she said she thought something was wrong and that the amount wasn't right. We both stopped signing the documents and asked if we needed to postpone until the could reconcile their accounting. She said no and that she felt the error was on their end because "her husband can't add". We completed the closing, signed everything and everyone left. Four months later we receive an additional billing from our builder for approx. $24,000. Do we have any rights in this situation or do we owe this amount as well? I thought once the settlement statement was signed we were finished. And before, you say it, we feel just as stupid as we look.

 

[lwpat]

You need to consult the attorney that handled the closing for you. It depends on whether the check was payment in full or not.

 

[D_Mundy]

It was for payment in full. I did contact the lawyer but he only handles closings - didn't want to get involved in any dispute.