Neighbor Does Not Wish to Use Our Fence Contractor

[Lorine]

My question involves real estate located in the State of: CALIFORNIA

We have a bid from a licensed contractor for $1300 to replace the fence and retaining wall we share with our neighbor. The neighbor has met with him and asked him to do additional work (plant removal and vine replacement) that he has added to the Proposal-Contract. She agrees to pay for her half of the fence and wall plus $150 for the full cost of the extra work. She is concerned about the wonderful price (she got a bid of $2800 from a relative) plus she had some sort of emotional reaction and/or miscommunication with the contractor so she refuses to sign the contract and instead wants us to be the contractor's sole client. She wants us to sign an agreement based upon the costs and work described in the contractor's written Proposal-Contract and she is willing to pay her portion directly to us and not to the contractor.

Our concerns are that; 1)she is asking us to act as a contractor by subcontracting her portion plus her extra work to our contractor, 2)is there any way the contractor might increase his price after work begins, 3)if the cost of the work needs to be increased for some reason then it seems she has protected herself against being obliged to pay for any extra expense, 4)we don't know what sort of recourse we would have if we started the work but have a change needed, and 5)we need smooth cooperation with future work needed for about 10" of fence/retaining-wall. Because CA civil code 841 requires neighbors to divide the cost of a fence, does that include the retaining wall and would the contractor be the one needing to collect any extra disputed expenses from the neighbor (despite her agreement with us)? Could you address my 7 concerns and questions please? Your suggestions would be greatly appreciated!

[Mr. Knowitall]

I can understand why your neighbor, believing the market price for the fence replacement to be higher, would be concerned about your choice of contractor and the possibility that the price might suddenly start escalating after the job starts. If you don't want to accept that risk yourself, you should consider seeking out a mutually agreeable contractor or make sure that your contract with the one you've chosen covers all necessary work and excludes the possibility of a price increase. Your contractor will recover what you owe from you.

[eapls2708]

The disparity of bids can be an indicatort that your fence contractor is neglecting to include certain services or materials. Many service industries and professions see this problem, where some providers bid very low to get the work and then cut corners in areas that will become apparent only sometime down the road.

I would suggest getting at least 3 bids. If the others come in over $2000, then it's a pretty good indicator that your $1300 contractor either miscalculated, intends to cut corners to make the price and not lose money, or intends to make up for it by adding costs later for "unforeseen" costs. If the others come in closer to the lower price, perhaps the $2800 contractor miscalculated, knows about some difficulty on your property that will cause extra work (rocky soil or bedrock close to surface, loose soil requiring longer posts, etc), or just considers your neighbor to be a PITA relative and doesn't really want the work.

Either way, getting multiple bids and then asking the contractors some questions about what considerations went into the number is a prudent way to choose a contractor, and often a professional service provider for that matter.


As long as you've vetted a contractor or other service provider well, I don't see a problem with an arrangement wherein one neighbor enters into the contract with the provider and the neighbors agree between themselves as to the division of costs. As a professional service provider (land surveyor), I would prefer such an arrangement. If I have trouble getting paid, I don't want to be the collateral victim of a squabble between neighbors about who is responsible for paying what amount, I want, actually require that one party be responsible for my fee and that any divisions of financial responsibility for paying my fee be handled by a separate agreement between those parties.

If your neighbor wants to do that, then do it in writing and make sure you do it for an amount that will actually cover the costs. Perhaps a "1/2 the costs, not to exceed $_______". A clause like that covers you up to some reasonable amount while giving some assurance to your neighbor that any contractor you might choose will have been chosen carefully.