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Question DetailsAsked on 2/28/2014

do contractors have to give orginial receipts to homeowners for material

when you have to buy material for a job to do, is it required that you have to give them the orginial receipt for the material and lose the mark up that would have been applied

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3 Answers

0
Votes

Not to my knowledge. How is the contract written?

Answered 5 years ago by Guest123

0
Votes

Typically , NO you do not !

Now , each state has different requirements , and what is legal here in Virginia

is NOT the same in North Carolina , or California or New Mexico etc etc.....


Unless a contractor is doing a Cost Plus contract , the receipts of purchases are the Contractors . As a contractor , what I pay for materials is my business . When I purchase materials at Lowes or HomeDepot , I pay the same price that is availavble to the average person or homeowner . However , there are additional costs incurred when a business man buys materials .


There are overhead costs, procurement costs , managerial costs, delivery costs and returned products cost ,etc, all of which MUST be paid by someone. So , while the intial material costs are much the same , the additional costs Must by fact , add to the costs , as NO JOB can be performed for free !


The additional costs are handled by mark ups , which can range from 10 % to as much or more than 100%.


As a cost plus job ,the markups are a matter of contract , and then passed on to the client at a pre- arranged markup , and that point , the receipts are given to the client for payment ,according to the contract terms.


So typically , the receipts are the contractors unless he chooses to pass them on to the client for warranty purposes , then again ,Overhead charges usually cover the warrantee

costs and are covered by the suppling contractor .


Get's rather confusing does'nt IT ?

Answered 5 years ago by BentheBuilder

0
Votes

1) In addition to the comments here, I provide a link to another discusssion on the same subject -

https://answers.angieslist.com/is-rea...

2) I don't see how, since this seems to be coming from a contractor's point of view, you would lose the markup - that would be established by contract, and could still be applied to the purchase cost regardless of who ends up with the original receipt. Of course, if you were working on time and materials and the contract does not specify a contractor markup on materials, then charging one would be fraud.

3) Technically, under the Uniform Commercial Code (except in Louisiana, as I remember), when a customer purchases a product which is warranteed, the contractor has to provide the necessary documentation to allow the customer to make claims under the warranty, by the completion of the job. This is required because the warranty is part of the product, and for the contract to be complete, the entire product has to be delivered to the customer - a vendor cannot withhold the proof of purchase needed to validate a warranty any more than he can remove the accessories and racks from a stove when installing it. Of course, if he refuses to provide it, then you have to sue.

4) Therefore, it would be important to a homeowner to make sure the contract stipulates that all original receipts for warranted items, owners and instruction manuals, etc shall be provided to the homeowner along with any required contractor certifications or signatures necessary to validate the warranty. You should also make sure that any packaging required to be presented with warranty claims are saved and given to you.

5) This not only gives you the complete product you paid for, but also removes you from the unfair requirement to go through the same contractor for warranty claims - especially since you have no way of knowing how long he will be in business, or you may have had a bad experience and never want to talk to him again. THere was a definitive court case some years ago against car manufacturers saying you had to bring your car back to them for any maintenance, rather than do it yourself or go to another vendor, or your warranty would not be honored. The courts knocked that down in short order as fraud - a cendor cannot require that warranty work be done a specific place, though of course if you are looking for remedy under a replacement warranty then the replcement materials have to comefrom the manufacturer, but not necessarily through the original contractor.

Answered 5 years ago by LCD




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