Consumer Law, Warranties Commercial Construction Purchase Order

[AndyCBR]

In LA, we have a purchase order with a vendor (out of state) for glazing Materials on a job with a firm price quote. Fabrication based on field measurements was stipulated in the PO (this is very common in all trades as "as-built" conditions need to be taken into account before fabrication)

Upon returning shop drawings with field dimensions the vendor stated the job would now cost extra (about $6k) due to additional design work required to make the system work with the given dimensions (no additional square footage of material was needed).

In the end of negotiations the vendor stated we could either sign the change order or they would withhold the material for shipment. Additionally they threatened to force us to pay COD.

Of course we cannot finish our building without the windows so we will have to sign the change order.

Doesn't this in essence amount to extortion?

When we have issued a PO and accepted their quote with terms do we even have a contract since both agreements are not executed like a subcontract? I have never liked the PO arrangement as it is really "arm's length" especially when out of state.

BBB complaint? FTC? DOJ? Pay the $6k and move on as a lesson learned?

Thanks in advance for any advice you can give.

 

[lwpat]

For this small of an amount you may be better to pay it and move on. It is impossible to tell which party is correct without reviewing the documents. In addition, it depends on whether the "as built" variances are within the normal range for this type of project.

You can agree to payment of the additional under a "reservation of rights."
It needs to be worded corredctly so I advise an attorney.

Then you can sue for the 6000, maybe in small claims depending on the limit.