CURRENT CASE STUDY FOR DISCUSSION
A home owner wants to build a pergola and decking at the back of his house. He gets a number of quotes and also invites a Handyman (who did a letterbox drop) to price the job.
The Handyman has not done a project this size and informs the owner he can help him get the job done cheaper than his existing quotations by subcontracting the work to tradesmen and by buying the materials for him at cost. They agree on an overall price that is $5,500.00 cheaper than the other quotes.
The Owner releases the money in stages to enable the Handyman to go and buy the materials. The Owner also releases funds separately to pay for the labor cost. The Handyman tries to keep things under budget as whatever is not spent on materials and labor would go to him, he also does a lot of the manual labor himself (digging holes for posts etc..).
The Handyman project manages the job under the supervision of the Owner. The Owner has not secured a building permit from the local council.
There is no written contract, nor are there any plans or specifications for the work, it is done on an ad-hoc basis, in the mind of the Handyman he is working for the Home Owner who is the “boss”.
The Owner allows
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