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Question DetailsAsked on 12/13/2016

can home depot cancel a roofing contract we already signed because they say they gave us a low bid?

signed a contract, gave a deposit and financed through home depot for roof replacement. Now they say they underbid by 8,000.00 and want to cancel contract and refund our deposit. Is that legal or can we hold them to the original contract? They want us to pay the difference or let them cancel.

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2 Answers


If their contract states they have the right to rescind the contract in the event of a significant error in figuring the bid, as it might, you are probably out of luck - though you ought to be able to weasle a hundred of two $ Home Depot gift card out of them for your trouble.

Barring such a phrase, assuming contract was signed by both parties, which it presumably had to be to get the financing - then generally no they cannot unilaterally void it, though of course if they had their attorneys go to court on it they could probably get it voided as being unreasonable to them as a signing party, on the basis that a contract is supposed to be fair and equitable to both parties - but you could also simultaneously countersue for damages for the hassle and delay in having to get a new contractor.

I would first talk to the store manager and firmly state you have a signed contract and expect it to be honored - or maybeto get it in writing and spefically if you do not intend to carry it to an attorney level, send a certified return-receipt signature-required letter to the store manager demanding compliance with the terms of the contract.

If you would ultimately intend to fight them tooth and nail on this, then having an attorney write the letter would carry a lot more weight - and he/she would be familiar with the "safe" way to hint to them that failure to abide by the contract is likely to result in a bunch of bad press for them in website reviews - both at their website and others like Yahoo and Angies List and such. You could also file a complaint with the applicable federal and/or state consumer protection bureau if you really wanted to shake their cage - because from what I read here and elsewhere online and hear word-of-mouth, ,Home Depot getting the bid and then trying to increase the price is not unusual.

One other thing - did Home Depot, or was it their contractor, trying to rescind the contract ? You need to remember that your contract is with Home Depot, so THEY are the ones to talk to about any issue, and any discussions with the contractor should be limited to any observations about deficiencies in the work as he is doing it to get him to do it right - but any claims or complaints have to go through the home depot project manager to have meaning. I have read of contractor scams like this where warranty or box store subcontractors try to get the contract amount changed but by payments direct to them for the "bid error correction" or "additional unanticipated work" and the box store does not even know about it - it is just the subcontractor trying to line his pocket or make up for the commonly very low payments the box store or warranty company makes to them for the work. Calling a lot of necessary work or materials "additional" when they should be included in the job is another VERY common scam, resulting in the contract coverage being sometimes minimal in comparison to all the "uncovered" or "additional" things the contractor claims.

This sort of box store (or home warranty) contract using a subcontractor for the actual work causes a lot of problems in communications and in contractors trying to bump the price up (commonly by trying to get you to pay them more $ directly, outside ofthe contract), and in many states like mine many or most of the box stores or warranty companies are not even licensed as general contractors so are breaking the law in offering home improvement/repair contracts in the first place. IF that is the case in your state, your attorney might be able to makje hay of that fact too.

Answered 3 years ago by LCD


Here is another similar previous question which might be of interest too - especially the comment by Contractor Don about maybe not wanting a contractor on the job who is (at leat according to them) going to lose his shirt on the job - or plan on maybe some close inspection while the work is going on to avoid skimping on the work.

One other thing - unless you have a pretty large house or real steep roof, if they underbid by $8000 - that is in the range of a normal asphalt shingle reroof (around $4-7/SF ballpark) so I wonder just how much their bid was ! Was it even a reasonable price in the first place, or did they gouge you in the first place and are now back for a second helping ? Did you get competitive bids ?

Answered 3 years ago by LCD

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