We are heading into the final phase of construction. Walls were painted; hardwood and tiles floors are being installed. We all can see the end only now the contractor is running out of money. Now, the client is faced with the possibility of an unfinished house if the contractor stops working. My client protected herself in a contract, prepared by an attorney, with the contractor for a lump sum with some allowances to build her house. In this situation, she is only obligated to pay for construction items which hard to quantify during bidding due to unseen circumstances, such as site work , and are listed on the schedule of allowance in the contract. Allowances can also be made for items such as light fixtures, plumbing fixtures or door hardware which will allow the owner some leeway to make selections as construction gets underway.
She has been very generous from the beginning, even when the contractor deviated from the plan. I am concerned that her generosity may lessen her authority to hold the contractor from work stoppage. It is a tough situation for both the client and the contractor; more so for the contractor because he has to come up with the additional money out of pocket. The client on the other hand is not obligated to pay beyond the contracted amount plus allowances.
