Client broke contract-I got claim approved, they went with someone cheaper

Claim for wind damage was approved for partial repair, we inspected it, realized shingles were discontinued and got the entire roof approved. Now the homeowner called to let me know they found someone that would do it for $6,000 less and is going with them. They signed a contract at the beginning of everything saying that they would work with us if we got it approved, but is now saying that he thought the doc was so we could talk to the insurance company with his permission, that that is how he understood it.

So now I just want to get some compensation for all my work, this is what i listed in the invoice:

roof claim process-time wasted

Description
Tarping various areas of the roof to prevent leaks before the storm
Meeting with adjuster and providing new shingle necesary for color comparison- in the rain
Climbing up the roof and taking pictures in multiple occasions to send to insurance claims dept
Sending shingle to lab to be analized
Calling/ dealing with the lab to get shingle processed
Calling/emailing adjusters/claims dept as needed in the day/night
Working up Xactimate estimate requested by adjuster-money and time spent
Satelite measurements of roof report-money spent
Getting claim approved for the total roof
Time and effort spent in the entire process

How much should I charge them? Unfortunately, in the contract they signed it does not state an amount due to me if contract is broken.

Any and all feedback is appreciated! this has never happened to me.

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Ouch. Half of what they are saving sounds fair to me, so $3k.

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In your contracts, do you list an amount owed if they break a contract?

Thanks for your feedback!

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10 or 15%, depends on the vibe I get from the customer.

I think you answered your own question in the second to last paragraph. Good luck enforcing a contract with ambiguous unstated amounts.

Our insurance contract has an attachment, a separate page. The top portion has the required statement for the State Right of Rescission. Without that, most contracts will be considered null and void. The bottom half is a statement of charges much of what you have brought up. Sales Trip Charges $$ each, Inspection $$. Create Xactimate Estimate $XX and so on. The Customer signs this document. That portion is called “Cancellation for Convenience” as the Courts frown upon Penalty Clauses.

So if they cancel, now you have a document with firm charges for the work provided signed by the Customer. Add up the charges, send them an invoice. In most cases, it will end up around $1200 to $1500. Not a windfall by any means but generally enough to discourage someone from giving the job to some low baller who is paying deductibles.

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You are correct, as much as it hurts, I’m learning from my own mistakes.

Where can I find the State Right of Recission?

The Cancellation for Convenience seems pretty straight forward.

Thank you, I appreciate your feedback!

Most States have it listed online. Like www.indiana.gov Google search “Your State Home Improvement Act” or “Your State Right of Rescission Law”. You could also just call the State Department and start asking questions. You’ll eventually end up with some Bureaucrat that can answer your question. Or, you can ask your Attorney. You need to get that right because if you ever take one of your Customers to court and they have any kind of decent Attorney, one of the first things they’ll go after is to see if you have a legal contract.

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Would it not technically be a fraudulent act to submit your estimate to receive a release of the final payment? After all the carrier won’t release the depreciation until they receive a final invoice and cert. of completion. How can they receive the amount based off your estimate if they didn’t actually have you roof the home and for a lower amount?

Sounds like fraud to me. but I could be wrong…

Have an attorney write your contract. Don’t be cheap on this. it would have paid for itself on this customer alone.