We signed a contract to do an addition to our home costing for a fixed price.
It was agreed that the addition would be completed in 90 days.
Two years later, with not 50 percent completed, they gave me an invoice with an additional cost of $5600 for work they did not foresee.
Do we have to pay that additional cost?
In my opinion you have a fixed price 90 day home building contract that is in default.
I would have replaced this General Contractor a long time ago.
This is one of the (many) reasons I encourage people to Be Their Own General Contractor for new homes as well as additions and remodeling. It’s often less stressful than hiring a General Contractor.
Every state has different laws and different ways of handling your all too common problem of a home building contract gone bad.
You have to do it the right way.
I suggest you find a good (with references) Real Estate/Construction Attorney and find a good solution to this nightmare.
Call a local Realtor or even a local home builder or local Association of Home Builders to get some names and references for construction attorneys, or at least real estate attorneys. You can also find one through a local title insurance company.
You can find additional advice on the need for a real estate/construction attorney at Real Estate Lawyer-Construction Attorney.
A few hours worth of advice from a Real Estate/Construction Attorney for peace of mind is, in my mind, well worth it.