Damage repair estimates and proposals
Dear Mr. Feichthaler:
Like many, we sustained significant damage to our home in Cape Coral. We contacted contractors right away, but it has taken weeks just to get someone to come out and review the damage and advise of costs. Some contractors have given us estimates, while others have provided proposals. Is there a difference?
-John P.
Dear John:
As we navigate through recovery, so many of us have struggled to get a good handle on the level of damages, what they may cost, and how insurance comes into play. I have previously discussed insurance claims, so my answer will focus on the issues of contract you have brought forward.
An estimate is not a proposal or a final contract. It is viewed as information that may approximate the cost for a project. This can often occur when the scope of work is not 100% clear (roof repair is a good example). A proposal is an actual offer to complete work at a given price, although there can be clauses in the proposal that could lead to higher costs and more work being completed. If a proposal is made and accepted by you as consumer, this would likely be considered a binding contract.
Insurance companies may accept estimates, proposals, or signed agreements depending on the type of repairs, level of costs, and other factors. One thing to note is that an actual bid or proposal may be labeled as an estimate, but the language could indicate it is actually a proposal that can be accepted and ratified. Although it is not fun, it is important to carefully read what has been presented to you before signing. If you don’t understand certain clauses in the document, do not hesitate to ask questions to the company. If they don’t answer them to your satisfaction or you have concerns, speaking with an attorney could be helpful as well.
I wish you and everyone in the city well as we continue on the road to recovery.
Eric P. Feichthaler has lived in Cape Coral for over 35 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Museum of History, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.
To reach ERIC P. FEICHTHALER, please email news@breezenewspapers.com