Contractor Fee

[Anonymous]

My landscaper is charging me an extra $1000 because they did not include the contractor fee in the original quote. Here is the contract total...

Materials Total =. $667.50
Tax =. $40.05
Material Delivery =. $62.00
Materials/Tax/Delivery Total =. $769.55
Labor =. $332.00
Total =. $1,101.55
Project Total..……………………………………………………………....$24,399.42
Financed Total…………...……………………………………………………...$TBD

Here is the info in the contract about the $TBD

The “Financed Total” listed above is listed as “TBD” below because should you choose
to finance the job, there are several financing options available through our third party
finance company EnerBank. Please click this link to learn more about our financing
partner:
https://drive.google.com/file/d/1IIAK3Fcf_iGenoFndpVkRalDGhKjcpkf/view?usp=drivesdk

This makes me think it is there fee and not mine.

I questioned it and they wrote me the following email...

It was recently brought to my attention that the contractor fee of 5.5% was not included in the total amount you requested from Regions Bank. As you may know, the financing companies we work with, which specialize in home improvement financing, operate a bit differently than traditional lenders.

We collaborate with two such companies, both of which have a similar fee structure, and their competitors follow a comparable model as well. These companies provide various loan types, each incorporating a “contractor fee.” This fee is a percentage of the total loan amount charged to the contractor for their participation. The contractor fee can range from 2.99% to 15%, depending on the loan structure selected by the homeowner.

Unfortunately, we must adhere to this fee structure to offer these financing options to our clients, which ultimately helps us secure more jobs, as many customers utilize these programs. Since [landscape owner] does not include the “contractor fee” in the proposals he provides, we have to relay this fee onto our customers. If you look at the contract again, you will see where he includes Financed Total.......$TBD because the fee is based on the loan structure selected by participants.

When I signed the contract, it was within my budget, now it is over budget. I told them I would give the amount for the new job that was not financed, but I would need to get some clarity before writing a check for the contractor fee.

Is this fee legitamate?

[Anonymous]

I have no idea, but just curious what a landscaper yardman did for $25K!

[Anonymous]

The numbers don’t even make sense to me.
What is itemized doesnt equal 24k
If the fee wasn’t disclosed I don’t think they can tack it on after.

[Anonymous]

Anonymous wrote:The numbers don’t even make sense to me.
What is itemized doesnt equal 24k
If the fee wasn’t disclosed I don’t think they can tack it on after.

It’s a fee for financing. She doesn’t have to use their financing. But it may have very favorable terms so the fee might be worth it.

There is no way the landscaper could know the amount of the fee since it’s for the lending portion.

[Anonymous]

Anonymous wrote:The numbers don’t even make sense to me.
What is itemized doesnt equal 24k
If the fee wasn’t disclosed I don’t think they can tack it on after.

I didn't include the entire contract so that is why it doesn't add up.

The extra amount was told to me at pay up time. Initially when the assistant called me i said I didn't know bout a fee and I told her to just send me an email with the cost, but she never did. Now that they have started the second project that was approved 2 weeks later, she tacked the contractor fee onto the Phase 2 contract amount.

I was crazy to start a phase II without a phase I completion (they didn't do the walkway). She asked me to send the check in an envelope today for Phase 2 $3444.35 plus the 1,242 contractor fee. They are out there working now but have not finished, so if they don't finish, Iwill pay 1/2 and not the full contract amount until they are done.

[Anonymous]

Anonymous wrote:I have no idea, but just curious what a landscaper yardman did for $25K!

A 5 x 4 Flagstone front porch, 5 feet of walkway and 15 x 14 patio. As well as 5/6 foot privacy shrubs and other landscaping.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The numbers don’t even make sense to me.
What is itemized doesnt equal 24k
If the fee wasn’t disclosed I don’t think they can tack it on after.

It’s a fee for financing. She doesn’t have to use their financing. But it may have very favorable terms so the fee might be worth it.

There is no way the landscaper could know the amount of the fee since it’s for the lending portion.

It was a 9 month pay in full. I could have paid it off in the beginning but I wanted to spread it out. If there was a fee I would have never agreed an paid it out in full.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The numbers don’t even make sense to me.
What is itemized doesnt equal 24k
If the fee wasn’t disclosed I don’t think they can tack it on after.

I didn't include the entire contract so that is why it doesn't add up.

The extra amount was told to me at pay up time. Initially when the assistant called me i said I didn't know bout a fee and I told her to just send me an email with the cost, but she never did. Now that they have started the second project that was approved 2 weeks later, she tacked the contractor fee onto the Phase 2 contract amount.

I was crazy to start a phase II without a phase I completion (they didn't do the walkway). She asked me to send the check in an envelope today for Phase 2 $3444.35 plus the 1,242 contractor fee. They are out there working now but have not finished, so if they don't finish, Iwill pay 1/2 and not the full contract amount until they are done.

Also, when I told her to email it to me, it was for review purposes and I did not agree to pay it.