Was talking to a guy about his construction business. He tells me he started a project excavating for a pool that was supposed to be an easy 3 day job. 2nd day in he hits rock and thinks it'll take 2-3 weeks to break up rock and finish it. How does he figure price for this? I assume he gave a quote based on what he thought would take 3 days? Does he just finish it, and take the loss because of the extra time it took to complete? I'm just curious how you guys handle situations like this in the field.. - Mike
Anything unexpected will usually be negotiated time and material as an extra.
Machine is running, it cost $$$$$, when playing in dirt not all things can be seen. A good contractor will explain this and hopefully a good customer will understand. Not long ago there was a story on the TV that showed folks having a pool dug. Long story short, they ended up with a big hole full of garbage and permit was revoked for the pool. Years back someone had used garbage for fill and then covered it.
Two words, "Rock Clause". Although he may have been working under a verbal agreement.
We always had obstruction clauses in the contract that pretty much covered anything out of the ordinary. One time we hit some old Orangeberg (sewer pipe made from rolled tarpaper in the 1920s) on a hospital project and had to chase it for 100s of feet all over the 27 acre property as the authorities required it to be removed. Good thing we had an obstruction clause.
Yes, old iron habit, no contract without an obstruction clause, or equivalent contingency clause.
Would this guy happen to be in Hawaii?