Legal Katrina Question About New Construction
I hope someone here can help. I am having a house built and then we had a storm called Katrina. The builder wants to change the contract to "cost plus" instead of our fixed contracted price. They said there is a federal law that allows them to do this in natural disasters, since building material prices go up.
Anyone ever heard of this? My realor is lost. We have asked for the info for our attorneys to look it up, but I wanted to see if anyone here has heard of if while I was waiting.
Thank you.
Robert
No one is chimming in? Does this mean that no one has heard of such a thing, or am I that boring? )
Robert
I have been in the Building Supply business for almost 30 years.
I have never heard of any such law that would get me off the hook because of a natural disaster.
My customers hold my feet to the fire and I have to absorb price increases regardless of the circumstance. Unless the exception was clearly spelled out in your contract, IMHO your builder is bound by the price quotes in the contract he signed with you.