A tradesman is demanding to be paid too much

The price you are obligated to pay depends upon what you and the tradesman have agreed upon, and whether there is any written documentation. The basic principle is that you are obligated to pay the price you have both agreed upon.  

If you are not able to prove what price you have agreed, you should pay what is fair and reasonable. A fair and reasonable price means a price that is commensurate with the type of work that has been performed, and the scope of the work.  

If you have agreed on a price 

Find out what applies to estimated and other price information 

The final price you can reasonably expect to pay depends on the pricing model you and the company have jointly agreed to. 

Fixed price 

Usually a firm fixed price is given as a total amount on the estimate/price quote or in the contract. A fixed price can also be stated as the number of hours the work will take, combined with the hourly rate. As long as the job the company agreed to do does not change, you can reasonably expect to pay the fixed price and nothing more. If the work takes more time than the company estimated, this normally should not affect the fixed price. The company is only entitled to charge a higher amount if the company has performed additional work. 

Estimated price 

When you are given an approximate price or a price range, it is usually called an estimated price. The final amount may not exceed the estimated price by more than 15%, unless you have explicitly agreed on a higher limit. If the estimated price applies to a price range (e.g. approximately SEK 50,000-60,000), 15 percent can be added to the highest amount. If on the other hand the company has set a ceiling price in combination with the estimated price (e.g. it will cost about SEK 90,000, but no more than SEK 100,000), only in exceptional circumstances should you be required to pay more than the ceiling price. The company is only entitled to charge a higher amount if the company has performed additional work. 

If you have used the ABS construction project contract or the Hantverkarformuläret (contractor form) for demolition or excavation and other ground preparatory work, the estimated price may be exceeded by a maximum of 25 percent. 

Hourly rate 

An alternative to a fixed or estimated price is a variable price based on an hourly rate. In this method, you pay an hourly rate per hour worked. An hourly price can be combined with an estimated price or a ceiling price. A ceiling price in this context means that the work is performed on an open-ended per hour basis but that there is a maximum price that may not be exceeded. Even if no ceiling price has been agreed upon, this does not mean that the tradesman can charge an unlimited amount. The final price for the work must always be fair and reasonable. 

Prices are to always be inclusive of VAT 

According to the Price Information Act, as a private individual you should always be able to expect businesses to quote a price inclusive of VAT. Therefore if a price is quoted without VAT, this must be clearly stated. If the business fails to state that the price does not include VAT, they cannot raise the price or charge you more afterwards. If despite this prohibition you nevertheless receive a final invoice with a higher amount than expected due to VAT being added, you can dispute (object to) the VAT part of the invoice. 

Verifying whether the company has performed additional work 

If the company has performed additional work other than that first agreed upon, the final price may be higher. 

What is “additional work”? 

Additional work means work that was not part of the original agreement between you and the company. For example, it could be extra work that you want done when the company is performing the work or providing the service. It may also be that during the course of the work the company notices that additional work needs to be done, which is related to the project contracted for but which you did not agree on beforehand. 

Sometimes the work takes longer than the company expected. This normally will not be regarded as additional work, as long as the company’s agreed tasks have not changed. 

Work that is normally part of a particular job should not be regarded as additional work, even if the company suggests it is. For example, if you have purchased a complete turnkey renovation of your bathroom, you should be able to expect the bathroom fittings to be installed and included in the price you have been quoted, unless the company has said otherwise in the price quote or the contract provides otherwise. If the price quote or contract is unclear, it is usually interpreted to the detriment of the company.  

Prerequisites for the company to charge for additional work 

There are rules about when the company can charge for additional work. 

Do I need to have approved the additional work? 

If the company finds that additional work needs to be done, they should always contact you . It is up to you to decide whether or not you want the company to undertake the additional work. If you both agree that the work is to be done, the company is entitled to charge you for it. The company may be entitled to payment even without your agreement. 

In certain exceptional cases, the company may be entitled to payment for additional work even if you have not agreed to it in advance (for example, if the company has tried to contact you before doing the work but has not succeeded). This applies in for instance the following situations: 

• The price of the additional work is low compared to the original amount agreed on (benchmark: less than 15% of the original amount) and there are specific reasons to presume that you want the work to be done in connection with the project contracted for. 

• The additional work is necessary to avoid an emergency situation, such as a water leak. 

This is how additional work is to be priced 

Sometimes pricing models for additional work are written into the estimate or contract. If you have not agreed in the contract on a price for additional work, or when the need arose, you should pay a fair and reasonable price for the work. A fair and reasonable price should correspond to what is a reasonable price based on the type of work and its scope. 

If you have not agreed on a specific amount or don’t have the price in writing

Ask for an itemised invoice 

Under the Consumer Services Act, you have the right to receive an itemised invoice from the company. This should enable you to assess the work done by the company. For example, you should be able to see what work has been done and what materials have been used. You cannot however ask to see receipts for purchases of materials) 

If the work was not undertaken at a fixed price, the invoice must also show how the price was calculated. You may therefore also require the company to indicate the number of hours and the amount of materials used, as well as the hourly rate and materials prices. The purpose here is to enable you to assess whether the price is fair and reasonable. 

You do not have an obligation to pay until you receive the itemised invoice

When you request an itemised invoice within a reasonable period of time from the completion of the work, you are not obligated to pay until you have received the itemised invoice. Contact the company in writing to request the itemised invoice or specification. For example, you can send an e-mail or text message. If you are withholding the payment, it is important that you can show that you have requested an itemised invoice which you have not yet received and that this is why you are withholding the payment. 

Find out what a fair and reasonable price is 

You should pay a price that is fair and reasonable for the type of work involved. In an assessment, the onus is on the company to prove that the price is fair and reasonable. But so that you will know how to respond to the company’s demands for payment, it is helpful if you have an idea of what is a fair and reasonable price for the job performed would be. If you don’t know, you can ask other tradespeople in the industry for a price quote for the same type of job. 

Make sure you get the price in writing, for example by e-mail or text message, so you can keep it as a record. 

It is the scope and type of work that determines what price is a fair and reasonable price – not the number of people carrying out the work.  

How to handle this situation with the invoice 

There are two ways to respond to an invoice that you think is unreasonably high. 

Dispute the incorrect part of the invoice 

If you find that the amount stated on the invoice is too high, you can notify the issuer that you contest (object to) the part of the invoice that is incorrect, and that you therefore will not pay the full amount. At the same time, you are obligated to pay the part of the invoice that is justified and correct. 

Notify the company of the amount you will be paying and that you are contesting the remaining amount. It is important that you explain why you are not paying the full amount. 

When contesting an invoice, it is important that you contact the company in writing so that you have documentation to show as evidence. For example, you can send an e-mail message to contest the invoice. If you choose to contest by letter, it is advisable to send the letter by registered post. Remember to make a photocopy or take a picture on your phone. 

Pay under protest 

Paying under protest means that you will pay the full amount demanded, but at the same time state that you disagree with the company’s position. This can be a good alternative if you are not comfortable contesting the demand for payment. Because you pay what the company is asking for, you don’t need to be concerned with dunning charges and late payment fees or interest, or the company turning the matter to a debt collection agency or the Swedish Enforcement Agency. However, you will need to pursue the matter further if you want to demand a refund.  

Make sure you notify the company in writing that you will pay but that you do so under protest because you do not think the amount on the company’s invoice is correct. For example, you can send an e-mail message. 

To have your case examined, you can turn to the National Board for Consumer Disputes (ARN). ARN can decide whether you are entitled to a refund of the money you paid under protest. 

If you need guidance

If you need guidance, you can contact Hallå konsument. We are a national information service that can provide information on your rights and what options you have to make progress. We provide independent guidance and therefore cannot assess your individual matter, resolve disputes or contact companies for you.  

Contact details for Hallå Konsument 

If you and the company are unable to reach an agreement on a mutually agreed solution, in many situations you can submit a complaint to the National Board for Consumer Disputes (ARN) to have the dispute examined. There is no charge to you for this service.  

Further information about submitting a complaint on ARN’s website 

To be able to submit a complaint to ARN, the company must have responded to your demands rejecting them in whole or in part, or have not responded at all.