The Permit and Dumpster Change Order
Monica signs a $26,500 bathroom remodel contract that states: Contractor will obtain all necessary permits and remove all debris. The contract has a written change-order clause requiring signed written change orders. Mid-job, the contractor tells Monica at 8 p.m. that the county permit fee is $800 and the dumpster is $600, and that his crew will not return until she signs. Monica signs a handwritten change order for $1,400. Later she learns the contractor never pulled a permit; the county issues a stop-work order and a $500 fine. The contractor demands payment of the $1,400 and says the stop-work order is Monica's problem because she asked questions. The original contract price is 60% paid. Monica has photos and the original contract.
1. Is the $1,400 change order enforceable? Analyze contract language, consideration, and possible duress.
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The change order is probably not enforceable. The original contract already required the contractor to obtain all necessary permits and remove all debris. The $800 permit fee and $600 dumpster charge are therefore part of the original price, not new work. A change order needs consideration, meaning something extra beyond what the contractor already promised. Here there is no additional scope. The timing also supports economic duress: the contractor announced at 8 p.m. that the crew would not return unless Monica signed, leaving her with an unfinished bathroom and no reasonable chance to negotiate. A signed writing is not enough if it lacks consideration or was obtained under pressure. Monica can dispute the $1,400 and should not pay it without a written breakdown showing actual extra work.
2. Who is responsible for the permit and the stop-work order?
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The contractor is responsible. The contract expressly assigns permit responsibility to him, and Maryland law requires the contractor to perform home improvement work in compliance with applicable codes. His failure to pull the permit is a breach of contract and a regulatory violation. The stop-work order and the $500 fine flow from his failure, not from Monica's questions. Monica should not pay the fine or the $1,400 demand. She should ask the county inspector what is needed to correct the violation and whether the contractor can still obtain a permit. If the contractor refuses, she may need to terminate for material breach, document the incomplete work, and hire a licensed contractor to correct it. The original contract and photos are key evidence.
3. What remedies should Monica pursue?
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Monica should file an MHIC complaint and provide the contract, the handwritten change order, photos, the stop-work order, and the fine notice. She should withhold the disputed $1,400 and demand a written accounting of all payments and completed work. She should require the contractor to obtain the permit or explain in writing why he cannot. If he refuses to comply, she can treat the permit failure as a material breach and seek cancellation or damages for the cost to complete the work properly. She should not let the contractor continue without a permit, because that could create more code problems. She should also keep a timeline of the 8 p.m. demand, since it supports her claim that the change order was coerced.