Builder ordered 30 extra boxes of hardwood on a cost-plus job: who pays for the overage?
A homeowner building on a cost-plus contract found about 30 surplus boxes of hardwood and a similar tile overage, roughly $6,000 of material the supplier won't take back. Standard cost-plus terms let builders bill reasonable waste, and the leftovers belong to the owner.
The owner laid out the problem in a Reddit r/Homebuilding post on Nov. 4: the plan never changed, yet the flooring and tile orders ran well past what the rooms needed, and the material cannot be returned. At about 20 square feet a carton, 30 boxes of hardwood covers roughly 600 square feet.
Some overage is normal. Angi's flooring guide puts the usual cushion at 10% to 15%, closer to 5% for tile and vinyl and about 20% for solid hardwood, to cover miscuts, defective boards and future repairs. Buying the whole job from one production run also matters, because a later order may not match. A spare box or two for repairs is cheap insurance. Thirty boxes on an unchanged plan needs an explanation.
The contract decides who absorbs the difference. AIA Document A102, the American Institute of Architects' standard cost-plus agreement with a guaranteed maximum price, lets the contractor bill material beyond what was installed only as an allowance for reasonable waste and spoilage. Leftovers belong to the owner once the work is done, or the contractor sells them if the owner prefers and credits the money against the cost of the work. The same form commits the contractor to work economically and in the owner's interest. If the builder's fee is a percentage of cost, the owner also pays markup on every extra box.
Owners signing a cost-plus deal can write a waste percentage for each trade into the contract, ask to see the takeoff and purchase order before material ships, and require returnable surplus to go back for credit. On a job already underway, ask the builder for the takeoff behind the order and whether the supplier will accept unopened cartons, even with a restocking fee.
Why it matters: On cost-plus work, put a waste allowance and a leftover-material clause in writing and share the takeoff before ordering. An unexplained $6,000 overage is the kind of line item owners dispute at the next draw.
Sources
- Extra MaterialReddit r/Homebuilding, Nov 3