Vendor wants to revise quote after job is complete ????

Lynn R. · Oct 19, 2018

Hi all,

I had a local vendor quote an automation and controls job for me.
I liked his price, and gave him my credit card # to get purchased items ordered.

7 weeks later, the job is complete and I get an e-mail saying that the job took longer than they thought and they will be sending a revised quote. I get a new quote After the job is completedwith a 72% increase in the original quoted price that I agreed to.

There is a clause in the original quote that says "If engineering issues are uncovered it MAY cause the quote to be revised.", but the only issues were at their end. I did not change anything.

They are now holding my completed device hostage until I pay the extra money.

Is this standard practice with control and automation jobs, or do I need to get an attorney to look into this?

Thanks

M.B. Naegle · Oct 19, 2018

Dunno about legal, but IMO that's just bad business.

We do repairs and custom jobs that often come out over/under quote and need adjustment, but those adjustments are handled immediately, not 7 weeks later! If the customer doesn't like the revised quote, we can negotiate (we eat some of the cost, or reduce what needs to be done), or cease work and send it back. In all of those cases though, it's learning experience FOR US to get better quotes in the future, not grounds to gouge PAST jobs.

Tonytn36 · Oct 19, 2018

If you have documentation, get your attn involved in this one.

Richard King · Oct 19, 2018

Sounds like bait and switch. I have seen this in the rebuilding business too. A rebuilder bids the job super low compared to mine and after he is about 1/2 done he calls the customer and says oops we missed something and need more $. The customer was smart and has a Not to Exceed clause in the contract. Did you have anything like that in your purchase order?
Can you cancel the order and credit card payment? If you can live without your parts for a while see what you can do. Lets see what the others say.... before calling a lawyer. Rich

aarongough · Oct 19, 2018

Given that the quote literally says that it could be revised due to engineering difficulties it seems you probably don't have much of a legal leg to stand on... What they gave you originally was in their eyes 'an estimate' and now you're seeing the true cost.

I agree that's a crappy way to run a business... If they can't quote accurately then they need to be much more up-front about that. I would say the first course of action would be to go (in person) to their office, find the owner and have an honest conversation with them about the problem. If they are not amenable to being talked around then I have a hard time seeing what you'd be able to do legally given that clause in the original quote. I guess fight to get your bare machine back with no money paid?

Guest · Oct 19, 2018

I don't think the clause stating "If engineering issues are uncovered it MAY cause the quote to be revised." Gives them a right to raise prices without consulting you first. I would ask what happened to the revised quote? The course of action depends on what 72% is in US dollars or if you just want to fight it on principle. I don't think a judge in this country would side with them.

Dan from Oakland · Oct 19, 2018

Keep us updated- everyone in business would like to be able to raise the price AFTER the job is complete, but that simply not how things work in this world unless the original terms were time and material, it would seem you had a firm price quote. If you did not change any of the specifications or requirements, its assumed that's the price you pay.

Good luck with this one.

broke · Oct 19, 2018

If the customer makes changes after the issuing of the PO I will charge extra if it makes the job more difficult.

If they messed up on their quote, they eat it. That's how it works.

Newman109 · Oct 19, 2018

At the very least, you should get your credit company involved and start a dispute. They will hold the funds until the matter is resolved. I know that doesn't get you any parts, but you would be out of business if that becomes a standard practice. 72%! Ouch!

Lynn R. · Oct 19, 2018

M.B.,
So you would have come to me when the project was out of money and said "Look we blew the quote and it looks like it will be another $4,000.00 to finish the job"

and at that point we would decide how to proceed?

I wasn't given that opportunity. It was "Hey your job is done but it took longer than we thought so it will cost you another $4,000.00 before you can pick it up.

broke · Oct 19, 2018

Lynn R. said:
M.B.,
So you would have come to me when the project was out of money and said "Look we blew the quote and it looks like it will be another $4,000.00 to finish the job"

and at that point we would decide how to proceed?

I wasn't given that opportunity. It was "Hey your job is done but it took longer than we thought so it will cost you another $4,000.00 before you can pick it up.

Either get your money back and let them keep all the work or allow them to ship without you paying any more.

If they don't do either of those things, put them on blast. That's rotten business and they shouldn't be allowed to skate by.

Guest · Oct 19, 2018

$4,000, yikes! I think course of action depends on how much you need what they produced and how much you staked. Can you reverse the charges and walk and be out $0? Or did you pay up front for components they used along with desperately needing the completed product. If the case seems as open and shut as you describe and you need the item you could always pay the bill then sue them in small claims court for $4,000.

kustomizingkid · Oct 19, 2018

Woof... definitely a lack of communication and bad practice going about things that way. I wouldn't just hand them over the check but at the same time if you need the device you need it. In the long run it reflects on them badly for sure, hopefully the battle won't cause you to look poorly if you miss a delivery due to this.

TDegenhart · Oct 19, 2018

As others have said, it all depends on how desperately you need the machine, and how much money you already have in the project. How much has the vendor got in the project? If you refuse to pay and tell them to keep the machine, can they recoup any of their investment by selling the machine or parts, or do they eat the whole bill. If you tell them they are stuck for the entire cost, they may be a little more receptive to dealing.

My experiences in situations like this a eye to eye discussion, lay all the facts on the table. A 50-50 split may not be palatable for you rather than 100% of nothing.

Negotiations are best at this point rather than lawsuits. Those can come later.

Tom

Lynn R. · Oct 19, 2018

Too late, I already missed the runoff scheduled for last week.

My customer claims he lost a $2800.00 job because of me.

What I don't understand is that the vendor knows that I have orders for two more of these as soon as this one passes the runoff. I guess he is more of a bird in the hand kinda guy.
Needless to say I will be looking for a different vendor on the next two.

M.B. Naegle · Oct 19, 2018

Lynn R. said:
M.B.,
So you would have come to me when the project was out of money and said "Look we blew the quote and it looks like it will be another $4,000.00 to finish the job"

and at that point we would decide how to proceed?

I wasn't given that opportunity. It was "Hey your job is done but it took longer than we thought so it will cost you another $4,000.00 before you can pick it up.

I can't speak to the automation industry, But it's hard to accurately quote machine repairs without physically digging into the machine or having it running to diagnose. I hate the jobs where the machine works fine but there's a "sound" the customer doesn't like, or there's an intermittent issue that never pops up while we have it.

$4000 is definitely their screw-up. If they started into the job thinking they could do it for $1000-2000, as soon as the mechanic says he's going to need more parts or time than they scheduled and it's going to cost more, he and the sales guy should have got'n together and discussed it and got'n in touch with you.

I've seen where shops get gung-ho and push work out faster than management can keep up with, or management says "get it done and we'll handle the paper work later." In both cases, good for them for trying to hustle, but that doesn't excuse them pushing their bad shop/management/accounting relations off on you.

DanielG · Oct 19, 2018

Lynn R. said:
M.B.,
So you would have come to me when the project was out of money and said "Look we blew the quote and it looks like it will be another $4,000.00 to finish the job"

and at that point we would decide how to proceed?

I wasn't given that opportunity. It was "Hey your job is done but it took longer than we thought so it will cost you another $4,000.00 before you can pick it up.

They shouldn't even wait until the original $5500 is spent. Let's say they thought they could use ABC inexpensive device, but it turns out that won't work with your system and they need XYZ expensive device instead. They should be talking to you as soon as they know it.

The key thing to remember here is that at no point did you agree to pay an additional $4000.

There are a few possibilities here:

a) You pay the higher price
b) You walk away and file a chargeback with the credit card company
c) You come to an agreement to pay, say $6500 total
d) Get an attorney involved and try to get the device for the original $5500.

How badly do you need the device? Do you need to use them as a vendor in the future?

If you go routes a) or c) (or probably d), you should ask them for full details. Material pricing, timesheets, etc.

One last thing, you technically only have so many days to dispute a charge. I think it's 60 days after the statement that it appears on. If you're approaching that date, you need to tell your card company that they aren't delivering the product you bought.

Lynn R. · Oct 19, 2018

Daniel G.
I looked at the timeline.
They hit my card for the entire PO amount (all parts and labor) back in mid August.
I wasn't too concerned because I was supposed to take delivery mid Sept.
Here it is mid Oct. and it is finally complete, but held hostage.
I will get a hold of the owner on Monday, after I cool down a bit.
If I pay the entire increase, I can have my machine (selling for $22,000.00) but the extra amount they want cuts my profit back to diddly squat.

Rob F. · Oct 19, 2018

DanielG said:
If you go routes a) or c) (or probably d), you should ask them for full details. Material pricing, timesheets, etc.

This^^ They should be able to produce this info on the spot. I would be hesitant to ask for it in advance to prevent them from doctoring it before you show up. I would also be sure to be there in person to talk with the owner.

DDoug · Oct 19, 2018

"Name of Establishment" please ?

Vendor wants to revise quote after job is complete ????

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