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KM Builders

Phone: (210) 680-5626 Fax: (210) 680-5625 7915 Mainland Dr Ste 200, San Antonio, TX 78250

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BBB Accreditation

A BBB Accredited Business since

BBB has determined that KM Builders meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that affect the rating for KM Builders include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 4 complaint(s) filed against business
  • Resolution of complaint(s) filed against business

Customer Complaints Summary Read complaint details

4 complaints closed with BBB in last 3 years | 0 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 4
Total Closed Complaints 4

Customer Reviews Summary Read customer reviews

2 Customer Reviews on KM Builders
Customer Experience Total Customer Reviews
Positive Experience 1
Neutral Experience 0
Negative Experience 1
Total Customer Reviews 2

Additional Information

BBB file opened: July 01, 2001 Business started: 07/01/1984 Business started locally: 07/01/1984 Business incorporated 07/01/2002 in TX
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

City of San Antonio Development Services Department
1901 S Alamo St, San Antonio TX 78204
Phone Number: (210) 207-1111

Type of Entity


Business Management
Mr. Keith Moehle, President
Contact Information
Principal: Mr. Keith Moehle, President
Business Category

Contractors - General Home Builders Home Improvements Home Improvements - Additions Painting Contractors Roofing Contractors Construction & Remodeling Services Cabinets Contractors - Flooring Kitchen & Bath - Design & Remodeling Kitchen Remodeling Kitchen & Bath Design Outdoor Kitchens

Alternate Business Names
KM Builders Inc KM Construction KM Design Center KM Remodeling
Additional Information

This company offers design/build services for remodeling kitchens, baths, room additions, outdoor living areas, etc.

Industry Tips
Before You Build Your Home Tips for hiring a contractor Tips for hiring a roofing contractor

Customer Review Rating plus BBB Rating Summary

KM Builders has received 0 out of 5 stars based on 0 Customer Reviews and a BBB Rating of A+.

BBB Customer Review Rating plus BBB Rating Overview

Additional Locations

  • 7915 Mainland Dr Ste 200

    San Antonio, TX 78250 (210) 680-5626


BBB Customer Review Rating plus BBB Rating Overview

BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

Complaint Detail(s)

8/18/2015 Problems with Product/Service | Read Complaint Details

Additional Notes

Complaint: KM Builders/Remodeling was contracted on 3/2/15 to build a garage extension to our existing garage. We paid a deposit for design fees. At proposal meeting, ***** ****** (*****) presented the proposed design and options to consider for our requested project. Base project price with profit and overhead were presented, along with prices (minus profit and overhead) of the various options. When my wife and I decided on the two options we wanted, Mr. ****** had his staff present us a final proposal that included the price of the two options selected. However, profit and overhead was only calculated against one of the options (Driveway) and not the other options (Electrical). As I calculated the presented cost myself, I questioned Mr. ****** about how he calculated the profit and overhead. ***** ******'s response was that profit and overhead were not calculated against any subcontracted costs, of which the Electrical option was a subcontracted cost. That explanation made sense I was then able to calculate the figures presented by KM Builders. We signed the contract and paid KM Builders an initial down payment (per the payment schedule). Due to the overall project cost, the next day, 3/3/15, I spoke with Mr. ****** and told him we were unsure of the project. I told Mr. ****** to put a hold on the project and not to incur any further costs for the project. While understanding that the initial deposit we paid for design was non-refundable, I asked if he would refund us our down payment. ***** ******'s response was he tends to not refund any payments made, and told me that he would like to do a future project for us for which he would apply our down payment to and he would not charge for any re-design work. On 3/23/15, I called ***** ******, informing him of the decision we had come to regarding the project. I informed Mr. ****** that we did not want the garage extension and that we only wanted the Electrical option portion, minus certain items. ***** ****** stated he would have his staff get in contact with me in a day or two. By 3/31/15, I had not heard from KM Builders or ***** ******; therefore, I contacted him. I told Mr. ****** that our preference was to have the down payment returned to us. Being that Mr. ****** told me on 3/3/15 that he had incurred additional costs over the design fee in the contract, I offered to pay him a reasonable amount for that initial design effort. But, if Mr. ****** was still insisted to not return our down payment, then have it applied to the Electrical option. On 4/1/15, Mr. ****** responded stating he would finish discussing with his team that day and that he would call or e-mail afterward, but he would not furnish me with any lists of costs. Having not received anything from KM Builders or ***** ******, I followed up with ***** ****** on 4/16/15. KM Builders finally provided me Change Order #1 on 4/20/15. However, it did not have any of the deductions from the Electrical option that I discussed with ***** ****** on 3/23/15 (this is because no one from his office called me to go over the deductions). Within Change Order #1, KM Builders was providing us credit for the initial deposit and down payment, which was keeping with what Mr. ****** told when we spoke on 3/3/15. Upon reviewing of Change Order #1, I noticed that KM Builders had now included profit and overhead against the Electrical option, of which KM Builders had not previously included in the final proposal or subsequent original contract. Some of the other direct costs also seemed excessive. I responded back to ***** ****** that evening on 4/20/15. I informed Mr. ****** that some of his direct costs should be further reduced based on the work remaining in Change Order #1. I also informed Mr. ****** that the Change Order #1 did not contain any of the deductions to the Electrical option that I discussed with him on 3/3/15. Lastly, I informed Mr. ****** that the original contract did not have profit and overhead applied against the Electrical option, restating back to Mr. ****** what he told my wife and I on 3/2/15 that profit and overhead did not include subcontracted work. Having not received a response from ***** ******, I followed up with him on 5/3/15. I also provided a copy of the Change Order #1 with annotations that some of the direct costs should be reduce further, identifying the deductions desired to the Electrical option, and indicating that profit and overhead should be reduced for they should not include the Electrical option per the original contract and Mr. ******'s statement on 3/2/15. Three more weeks had passed and I still had not heard from ***** ******. So, I followed up with Mr. ******, again, on 5/25/15. Because neither ***** ****** nor KM Builders had contacted me in five weeks, I requested our down payment be returned to us. On 5/28/15, ***** ****** replied. He apologized for the exceptional delay, stating he had gone through some loss of personnel and gotten behind on multiple items, mine included. Mr. ****** provided a revised proposal, Change Order #2, that included the deletions I indicated to the Electrical option, but he disagreed with my other requests. ***** ****** stated he did not want to prevent me from losing all the money I had spent (down payment and design deposit), and he did not feel that he was obligated to refund or even apply all the money that I had paid for the original project. As a result, Mr. ****** stated he would not credit me for the design deposit since the project was not the project they designed. ***** ****** also stated that he reserved the right to rescind the offer. After review of Change Order #2, I replied back to ***** ****** on 5/29/15. I reminded Mr. ****** that when he and I spoke on 3/3/15, he stated he would apply what we had paid to a future project and he would redesign at no additional cost. I further reiterated that his profit and overhead should not include the Electrical option, stating they were not included in the costs in the original contract and Mr. ******'s explanation on 3/2/15 that he does not include subcontracted work in factoring his profit and overhead. I attempted to negotiate an offer with Mr. ******. Additionally, because I had not received any actual construction work from KM Builders yet I indicated that any further payment I would provide would be payable upon completion of the project. Otherwise, if I made full payment I would not have any leverage to ensure the work was completed in a timely and satisfactory manner. If ***** ****** did not accept my offer then I requested he return my down payment, with allowing him to retain a portion to cover the full cost for project design development (indicated in the contract and change orders). ***** ****** responded on 6/2/15, stating the only reason I did not see profit and overhead applied was because it was in a list of options. He further stated that he had explained to me at time of proposal that any option I selected would have these (profit and overhead) applied after the total number of options had been selected by me, and indicated he would not negotiate the prices with me unless I brought some other reason to the table that he deemed legitimate. That same day, 6/2/15, I responded back to ***** ******. I concurred that the original proposal that included all the options did not have profit and overhead applied. Then I explained to Mr. ****** that in the final proposal presented by KM Builders, after my wife and I had decided on the options we wanted, that profit and overhead applied. However, the profit and overhead that was applied in the final proposal was only applied to one option (Driveway) and not the second option (Electrical). Based on Mr. ******'s last claim regarding his profit and overhead, I explained to Mr. ****** that if profit and overhead had been applied to all the selected options what the additional profit and overhead would have been if factored against the Electrical option, as well as indicating to him what the contract Grand Total would have been if profit and overhead had been factored against all the selected options. I indicated what the final amount would be for the Change Order if profit and overhead were factored in accordance with the original contract (not against Electrical option), as well as KM Builders applying the design deposit I paid and Mr. ******'s statement to me on 3/3/15 that he would redesign a future project at no additional charge. I also provided ***** ****** a copy of the KM Builder's final proposal that includes the options my wife and I selected and pointing out that profit and overhead did not include the Electrical option, and I provided the last two pages of the contract to show the grand total price in the contract matched the price in the final proposal. I have provided a legitimate response, based on factual information. It is 6/8/15, another week has gone by since my communication to ***** ******, and no response or progressive movement from the business.

Desired Settlement: Along with application of my down payment, in accordance with ***** ******'s statement on 3/3/15 I request design deposit be applied to the Change Order, as also indicated in the original contract and Change Order #1. In addition request that profit and overhead be factored keeping in accordance with the final proposal and original contract, which is that profit and overhead is not applied to the Electrical option work. Otherwise, refund my down payment, with KM Builders keeping the design deposit.

Business Response: Mr ******* is correct in almost everything he has described. He does not understand that what I was willing to do in the original contract, specifically, remove any profit or overhead for the electrical portion of a much larger contract, I am unwilling to do for a much smaller contract as I must cover my overhead and would like to make a profit on this job without using up all the funds we needed to cover our costs for the design work. He now has the design work and detailed budget which I told him would only wold only be given to him if he paid a downpayment. He paid the downpayment and took all the design work and the detailed budget. Now after receiving everything he needs to do the building on his own he is unhappy with his decision. Applying the down payment to a different contract is a very generous offer considering we are in a contract to build the building and I am acquiescing greatly by even considering rescinding that contract. We reserve the right to apply overhead and profit to any future contract if we are going to apply the down payment from previous contract. This offer will expire in 30 days.

Consumer Response: Complaint: ********

I am rejecting this response because:

At no time previously did ***** ****** ever state he was willing to remove profit and overhead for the electrical portion of a much larger contract.  As I stated in my initial complaint to the Better Business Bureau (BBB) on 6/8/15, during the proposal meeting on 3/2/15 Mr. ****** explained to my wife and I that he does not charge profit and overhead on subcontracted costs.  Neither at the proposal meeting nor during any other communication did Mr. ****** ever explain what he now claims regarding profit and overhead costs.

After Mr. ****** provided me Change Order #1 on 4/20/15, I responded that same day.  In my response I pointed out that Mr. ****** was now charging profit and overhead against the electrical option, contrary to the final proposal presented where profit and overhead did not include the electrical option and contrary to Mr. ******’s explanation to my wife and I on 3/2/15 that he does not include subcontracted work in his profit and overhead calculations.  Three weeks went by without any response/explanation from Mr. ******; therefore, I followed up with him on 5/3/15.  Two more weeks passed (for a total of five weeks) without any response from Mr. ******, so I followed up again on 5/25/15.  Due to not receiving any response from Mr. ****** in five weeks, in my follow-up on 5/25/15 I requested my down payment be returned.

On 5/28/15, five weeks after my response to Change Order #1 on 4/20/15, Mr. ****** finally responded along with providing Change Order #2.  While he apologized for the “exceptional delay,” he stated he had gone through some personnel losses and gotten behind on multiple items.  In his response, Mr. ****** claimed he did not feel that he was obligated to refund or even apply all the money I had given for the original project.  He claimed he would not credit me for the design deposit since the project was not what was designed.  He further stated I do not try to insist that he owe me anything unless part of the contract signed.  In Mr. ******’s response on 5/28/15, he did not provide any explanation claiming he removed profit and overhead for the electrical portion of a much larger contract.  Other than his statement on 3/2/15 that he does not charge profit and overhead on subcontracted work, Mr. ****** did not provide any explanation, rational or otherwise, as to why profit and overhead did not include the electrical portion or why he should not return the down payment I’ve paid.

In my response to Mr. ****** on 5/29/15, I again pointed out that the final proposal presented on 3/2/15 never had profit and overhead for the electrical portion and again reminded Mr. ****** of his explanation to my wife and I that same night (3/2/15) where he stated he does not include subcontracted costs in calculating his profit and overhead.  I have offered to compensate Mr. ****** an additional $270 (to be added to the $1,500 deposit I had paid) to cover his design fees/costs of $1,770 as indicated in the proposal and subsequently in each change order provided.  Otherwise, I requested Mr. ****** return my down payment ($3,589-$270 as just explained), for I had not received any work or benefit for this amount paid.

On 6/2/15, Mr. ****** replied.  In his response he stated the only reason I “did not see profit and o/h applied is because it was in a list of options.”  He further stated that he explained to me “at the time of the proposal that any option selected would have these applied after the total number of options had been selected” by me.  He explained that he didn’t know which ones (options) I wanted so he never calculated the o/h and profit at that time, and that he must add these fees to stay in business as they are necessary.  However, this statement from Mr. ****** is factually incorrect for when reviewing the final presented proposal it is clear that profit and overhead does not include the electrical portion, and the final price in the proposal matches the final price in the original contract...which again is proof that Mr. ****** did not fully calculate the profit and overhead against all the selected options as he explained on 6/2/15 and is different than his explanation to my wife and I on 3/2/15 that he does not charge profit and overhead against work that is subcontracted.  Additionally, no previous explanation exists from Mr. ******, verbally or written, that he was willing to not charge profit and overhead to the electrical portion of a much larger contract, but now he believed he should charge profit and overhead to the electrical portion due to the changes to the contract.  He essentially added it without a proper and thorough explanation, and is going against his verbal word on 3/2/15.

In his BBB response dated 6/8/15, Mr. ****** claims he must cover his overhead and would like to make a profit on this job without using up all the funds needed to cover his costs for the design work.  I point out he is still charging profit and overhead to his direct costs, which total $1,032.53.  Profit and overhead calcucated against the current electrical portion from Change Order #2 is an additional $779.74.  If Mr. ****** had calculated profit and overhead against the electrical portion of the original contract, the additional amount would have been $1,214.00.  If it was a decision of Mr. ******’s to not charge profit and overhead to the electrical portion due to it being subcontracted, as Mr. ****** explained to my wife and I, or in an effort to reduce overall costs (though he never explained this), that is a business decision made by Mr. ****** for which I should not have to burden due to the business decision made by Mr. ******.  If it was an error on he or his business’ part to not calculate the profit and overhead to the electrical portion when possibly they should have, that is a business error of no fault of my own for which I am also not responsible for it was not in the final proposal that was accepted nor in the original contract.  If Mr. ****** made a mistake and failed to include profit and overhead against all selected options as he possibly should have from the onset, the contract between he and I would now be void, due to defective pricing, and he would no longer have a legally binding contract nor a basis to not return my paid deposit.  A void contract would void all terms and conditions within the contract.  Subsequently, if Mr. ****** rescinded the contract, as he stated he is considering in his BBB response, then the down payment of $3,589 I’ve paid should be returned, especially since KM Builders has not done any further work to retain or earn payment, even on a rescinded contract.  If KM Builders had done work beyond the project design (cost of $1,770 and mostly covered by my original deposit of $1,500), I would agree to pay reasonable, substantiated costs for the work done.

That said, I’ve offered multiple times to compensate Mr. ****** for the total project design at the cost listed in the proposal of $1,770.  Mr. ****** claims he does not want to use up all the funds needed to cover for the design work, yet he has not stated the amount for design work.  The contractual amount for the design work, as indicated in the proposal, is $1,770.  I’ve clearly indicated to him I would pay him that amount (additional $270 over the $1,500 originally paid for design).  As for any other amount, I asked Mr. ****** to provide a certified list of costs incurred, of which Mr. ****** flat out refused to provide.  Though I requested he not incur any additional costs on the project when I called him on 3/3/15 (the day after we signed the contract), Mr. ****** has refused to provide a certified list of cost incurred.  Therefore, he has not provided a basis for any additional amount he should retain and not return to me, for work performed on this project beyond the design effort.

Mr. ****** claims this project is entirely different than the original project that would require a whole new design effort, this is entirely correct.  The electrical portion of the original contract as well as for the change order are almost identical; the running of the upgraded electrical line, running it into my garage, and installing the panel for both the original contract and the change order are the same.  The original design, still in the possession of KM Builders, shows this.  Therefore, for Mr. ****** to claim my original payment for design ($1,500) should not be credited to the change order since he has to do a completely different design is incorrect.  There is no redesign effort for the work in the change order.

Change Orders are changes to an existing contract; therefore, Mr. ******’s claim of applying the down payment to a different contract is also not correct.  Since the original contract was to build a garage extension with running upgraded electrical as the option to my existing garage, and the change order is running the same upgraded electrical to my existing garage, it does not constitute a new contract…rather, simply a change order to the original contract.  If I were to completely cancel any work on my garage and seek KM Builders to do a totally different project, such as build an extension onto my house in a different location or maybe a guesthouse not connected to my house or garage, that would constitute a new contract.

Mr. ****** has claimed I possess the design work and detailed budget, whereby he also claims he only provided to me if I paid the down payment.  Another incorrect statement.  No such statement was made the night of the proposal, and the down payment is actually part of the “Payment Schedule” as indicated in the contract and consists of “approximately 10% due upon acceptance.”  The project designs were retained by KM Builders, which is in accordance with the contract which states “All plans, specifications, artwork, etc., contained within remains the sole property of KM REMODELING.  This material may not be reused, distributed, or reproduced without the express written consent of KM REMODELING.”  Therefore, per the contract and contrary to Mr. ******’s BBB response, I do not possess the design work and I am not allowed to use the design work to complete the building on my own.  As for the detailed budget, no detailed budget was ever provided to me by KM Builders.  While I have a copy of the original proposal, the final presented proposal, the contract (that does not contain cost breakdown), and Change Orders #1 and #2, no itemized list or detailed budget has been provided by Mr. ****** or KM Builders.  As I indicated, I requested Mr. ****** to provide a certified list of costs incurred, for which he refused to provide.  Even if he had provided me a certified list of costs incurred, that list would not provide me a detailed, itemized list to serve as a detailed budget for me to use on my own to complete the project.

Just as he and I can discuss and potentially agree on changes to the original contract for work to be performed (through change orders) for which he and I must mutually agree upon, likewise the same holds true if Mr. ****** wants to later add profit and overhead elsewhere in the contract for which he previously did not include…it must be mutually agreed upon between the two parties.

Verbal statements are binding agreements in the State of Texas.  In this instance, those statements would be taken in conjunction with the contract.  Mr. ******’s verbal statements that are considered binding are: his explanation on 3/2/15 that he does not charge profit and overhead to his subcontracted work, and his statement on 3/3/15 that he would redesign and not charge me for (re)design for a future project and would apply my deposit toward a future project with KM Builders (this is also inline with KM Builder’s response to a BBB compliant on or around 1/14/14 where KM Builders stated they would “be willing to apply the deposit of $5000 toward any room addition that we design and build onto their new home and not charge for the re-design work).  There is a proven record that KM Builders has stated they would not charge for redesign and also apply the deposit paid.

Copies of everything I have (proposal, final proposal, contract, change orders, and complete e-mail discussions) are readily available to provide to the Better Business Bureau to substantiate every statement I’ve made.

Therefore, the reason I cannot understand what Mr. ****** states that regarding removing any profit and overhead for the electrical portion of a much larger contract is because he never explained that to me.  Further, I do not possess the design work and detailed budget, as Mr. ****** claims, because he never provided them to me and the contract states the design work is the property of KM REMODELING and cannot be reused without KM REMODELING’s written consent.

For me to accept Mr. ******’s response, there would be no charge for any re-design (application of the credit for design of $1,500 already paid) and full application of my paid down payment (of $3,589).  Based on Change Order #2, the total additional amount (with no charge for re-design (or credit for design already paid) and applying my down payment paid) would be $2,386.62.  This amount includes me acquiescing regarding the profit and overhead for the electrical work.  To ensure timely completion of the work, I could pay no more than half of this amount up front and retain the remainder until satisfactory completion of the work.  If this is not acceptable to Mr. ******, then an acceptable response would be for Mr. ****** to return the $3,589 I paid for down payment (as no physical work for this amount paid has been accomplished beyond the project design), minus $270 to cover the rest of the project design fee that is listed in the proposal.


****** *******

Business Response: I am responding to Mr. *******’s response per paragraph as follows:

1) Correct: I never stated why I was removing overhead for the electrical portion of the contract.  I don’t have to tell a client why nor did I feel that was necessary at the time. We all know that this is irrelevant.

2) I reserve the right to structure contracts individually. In the case of the change order in question I elected not to discount from our regular rate. Again, this is not necessary to state to a customer or anyone else. Mr. ******* has repeated irrelevant statements repeatedly and this takes valuable time that I do not have to spare. Thus considerable time will transpire when repetitive statements and accusations are made in our correspondence.

3) I never said that I don’t charge overhead and profit on subcontracted work. I merely said “I am not charging overhead and profit on THIS subcontracted portion of THIS proposal.” See the above paragraph for an explanation or the rational.

4) I do not accept his offer.  Mr. ******* is obligated to honor his commitments of the contract.

5) It all adds up when you figure I was not adding profit and o/h to the electrical portion in the original contract. Again, Mr. ******* is misquoting me.  Obviously the math adds up with my perspective of the conversation.

6) No mistakes were made. It was a business decision. It was final. There is no justification for voiding a contract.

7) I do not accept his offer. I am retaining what we all agreed to. Mr. ******* is obligated to honor his commitments of the contract.  I am not obligated to change the contract, explain why I am sticking to the terms of the contract or provide him with a new agreement.

8) This is irrelevant. I am not demanding that we keep the funds for any new project design. It is merely for the project already designed. I am not required to forfeit these or apply to another project even though I would have considered it at one time in the past.

9) The terms of the change order are specified in it and are nonnegotiable. If Mr. ******* does not agree with the terms the terms of the original contract are still applicable and current. No new contract is necessary.

10) He may be correct on this point but it is irrelevant to the issue at hand.

11) He is correct but if we don’t agree he is bound by the terms of the original contract.  He is in violation of the terms of the contract.

12) Neither a “he said, she said” relation of a conversation nor “here say” is acceptable evidence in a court in Texas. Mr.
******* has not corroborating evidence to support his misconstrued view of the events that transpired. My evidence is that the contract matches my view of the

13-15) I do not accept Mr. *******’s offer.  Mr. ******* is obligated to honor his commitments of the contract.

In an effort to accommodate the fact that they wish to no longer proceed with the contract that they signed I have made an alternative offer to Mr. and Mrs. ******* that they rejected (as can be seen in their correspondence).  It is not necessary to continue the discussion of my offer.  They have rejected it and I have rejected their alternate offer, period!  I will not waste any more time discussing or justifying my alternate offer to them, however, they should keep in mind that it is they who
are in violation of the contract and I have no obligation to modify my terms, for whatever reason, until it pleases them.



***** ******

Consumer Response: Complaint: ********

I am rejecting this response because:

The response from the business does not provide me anything to accept or reject, except for the comments themselves.  Accordingly, I reject the response.  The business has not made an offer.  Mr. ****** has clearly indicated multiple times in his last response that he rejects my offers. 

While Mr. ****** claims my perspective of the conversation is incorrect, he does not provide any verifiable proof other than stating his perspective of the conversation is different or claim that the contract matches his view of the conversation.  The contract price, in comparing to the final proposal, proves that profit and overhead were not calculated against the subcontracted work. There is no recording or transcript of what was said during the proposal meeting or the physical conversations between myself and Mr. ******.  My supporting, corroborating evidence to support my claims of what was said during the proposal meeting is my wife who was present during the entire meeting; conversely, Mr. ******'s employee that was in attendance during the proposal meeting did depart momentarily when the final proposal and contract were being generated.  It is plausible that what was said at that meeting occurred while his employee was away...either way, there is no way to verifiably prove his employee was or was not present when Mr. ****** made his statement concerning profit and overhead as it applies to subcontracted work. 

The statements I have made, that Mr. ****** claims are irrelevant, were presented to show that Mr. ****** has made incorrect statements, such as his claim that I had in my possession the design work and detailed budget.  Clearly, I do not as I already indicated.  Claims that my statement is irrelevant is most possibly a defense mechanism to deflect attention that he did in-fact make a false claim. 

While Mr. ****** states he is not obligated to change the contract, simply put he can make he did when he charged profit and overhead in the change order to a sub-cost element for which he previously was not charging in the basic contract.  Further, when he originally claimed he would not charge me for redesign of a future project, he later changed it to accommodate himself by stating he would charge me for the change order I requested due to requiring a redesign.  As I already indicated, there would not be any redesign required.  Consider that the original design was over designed, and my change was scaling it back (or a descope) whereby the original design for where the electrical work to be done is still supported by the original design.  Hence, no requirement for charging or requirement for me to pay design fee again.

We have not continuously tried to change things until it pleases us.  When we signed the contract, while we believed at that time the total price was higher than expected we felt the designed project was acceptable.  If we did not, we would not have signed the contract.  Granted, we should have "slept on it" to ponder the decision more before signing and paying the initial 10%.  The very next day we no longer felt comfortable with the project primarily based on the total price; it was truly more than we wanted to pay.  That night when I called and spoke with Mr. ******, with a heavy heart I told him we no longer felt comfortable with the project and originally requested he refund us the 10% down payment we paid minus any additional reasonable costs incurred to date, while understanding the original deposit paid was non-refundable.  Mr. ****** stated he "tends" to not return what was paid.  So that I would not lose any benefit for what we paid, Mr. ****** stated he would apply what we paid to a future project, and that he would not charge for redesign.  Following the logic that I not lose any benefit for what we paid, I agreed to think about what potential future project we may want KM Builders/Remodeling to do.  As I have stated, my wife and I decided upon a future project which essentially descoped the original project.  When I spoke with Mr. ****** about the revised project I informed him of what features we did not need nor require.  But when I received the first change order, the deductions I indicated had not been removed as requested.  Further, I realized that Mr. ****** was now charging profit and overhead against a sub-cost element for which he had not charged previously.  When Mr. ****** finally provided the revised change order, the deductions I requested were finally removed but Mr. ****** was still charging profit and overhead where he was not before and he now wanted to charge me again for project redesign.  I did not ask for any other changes to the actual work, and I remained consistent in regards to not paying for redesign (based on Mr. ******'s offer to not charge me, which he later withdrew) and for not paying for profit and overhead that was not part of the original contract.  I later acquiesced regarding the profit and overhead to the sub-cost element, which Mr. ****** essentially rejected in his lastest response.  My statement of paying the remainder up front and the remainder upon satisfactory completion of the work (based on no charge for redesign) is to protect myself as a consumer to ensure the work performed is satisfactory.  Otherwise, if I were to pay the remainder up front then I would have no viable leverage available to ensure the work is satisfactory (taking into consideration that KM Builders has not performed any physical work other than design).  Mr. ****** has rejected this.

On 3/3/15 I told Mr. ****** to put a hold on the project and to not incur any further costs.  No actual, physical construction work has been performed to date.  Mr. ******'s refusal to refund me the down payment paid (minus $270 to cover the full cost of the $1,770 original design fee) for work not performed is in essence holding my down payment in hostage in either an attempt for me to seek a future project from KM Builders/Remodeling or as punishment for not wanting to continue the original project.  Since I told Mr. ****** on 3/3/15 to put a hold on the project, I have not authorized any construction work to begin/resume.  If physical construction work had been accomplished, I would rightfully pay for work performed; however, I do not intend to pay for work not performed.  I understand that within the contract it states any down payment received or portion thereof is refundable only at the discretion of KM Remodeling.  As it is KM Remodeling's discretion, Mr. ****** can choose to refund my down payment (minus $270 as I have offered to fully compensate for the contractually stated design fee).  As no physical work has been performed beyond the design and no additional costs were incurred based on when the project was put on hold, I believe it would be reasonable for my down payment to be returned.

In summation, Mr. ****** has rejected my offer as he indicated multiple times.  The response is unsatisfactory.


****** *******

7/14/2015 Problems with Product/Service | Read Complaint Details

Additional Notes

Complaint: We contacted KM Builders after hearing the advertising show on WOAI radio. ***** ****** and his associate Jesse arrived to talk to us about our project on March 2, 2015. The project involve building out the 1st floor of our barn and adding an 20'x 20' extension to the footprint. The first floor was 1400 sq. ft. The renovations would include 2 bathrooms, 2 bedrooms, kitchen, living room, dining room and laundry. ***** said it could be done for $150k. That was the number we were thinking but had not shared it with him. I felt confident that it could be done based on their experience. I signed a design agreement and ***** asked for $3000. ***** said that if we decided not to go forward with the build he would refund the $3000. He also added a handwritten note to the "Project Description" line. " 20x20 room addition; remodel 1400 sq. ft. , 2 bathrooms...client will pay additional $3000 if it decided to move forward with project. Contractor will refund client $3000 if project can't be designed for above budget and client decides not to proceed with the above project." About a week later the KM Builders staff showed up to measure everything. ***, *******, and **** ******* their architect. They were here 3 or so hours. I gave **** a list. It included the obvious needs, 2 bedrooms, a master and a guest bedroom which would accommodate 2 queen size beds. Kitchen with induction range, soapstone and butcherblock countertops, linear drains in the showers. Living room, dining room, laundry room. 6 to 8" baseboards etc. we sat down and **** made a rough sketch to get an idea of what I wanted. We seemed to be on the **** page. On May 4th, 2015 ****** and I met **** at the KM showroom to see the preliminary drawings. We were excited. It took a while for **** to show us the actual drawings. We wondered why. **** explained that remodeling on average costs $100 per sq. ft. And the kitchen $250 per sq. ft., bathrooms $20k-$30k. He also said the he wished that ***** had talked to him about the project first. ****'s first drawing didn't include the 20'x20' extension. He said that this design would cost $132k and the extension would take another $60k! That's the reason he didn't include it. Then he had a second drawing. It had 3!!! Bedrooms......never ever did we say we wanted 3 bedrooms (tiny). We tried to understand what had just happened. We decided we couldn't go forward and we'd have to find a way to get it done. We can not spend more than $150k. I texted **** to not spend any more time on the project and asked for a refund. ***** called me and wanted us to let them finish the design and he would Only charge us an additional $2000! I have a design degree and can do that myself. Why would we want to waste any more time with drawings that did not address our needs? I mailed a formal refund request to KM Builders on May 23, 2015.

Desired Settlement: Refund $3000 as per the signed agreement.

Business Response: Mr and I have mutually agreed to dissolve this issue. **** ***** has agreed to remove her complaint from the BBB and I will refund her the design fee.  I s. *****would like to express my sincere apology to **** *****.  KM BUILDERS works diligently to keep the communication flowing and tries to avoid miscommunication at all costs.  


***** ******  

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.


Patricia *****

3/4/2015 Problems with Product/Service | Read Complaint Details

Additional Notes

Complaint: Was seeking estimates from several vendors to install a small outdoor kitchen (grill; sink; small refrigerator) on an existing deck. KM Builders was the only vendor who insisted on charging a “design fee”, originally of $1500.00. When I stated that I was not interested in paying any sort of design fee, the company’s representative (Mr. ***** ******) said he was willing to reduce the fee to &750.00. Given the small scale of the proposed project and the fact that no other vendors were asking for any sort of design fee, I continued to decline paying the adjusted fee of $750.00. At that point Mr. ****** stated that he was willing to refund the entire fee should I choose not to go forth with the project, which led me to agree with that understanding. Email correspondence with KM Builders to resolve the issue and to obtain the refund has not worked. Essentially, Mr. ******’s contention regarding the refund is at odds with my recollection of what was stated, and he is not willing to refund the $750.00. If I had not understood that the refund conditions were as stated in the preceding paragraph, I would not have agreed. Mr. ****** claims otherwise, so we have a standoff, but KM Builders has the money.

Desired Settlement: KM Builders should refund me $750.00.

Business Response:

KM BUILDERS presents the Design Deposit Agreement the same way at each consultation.  Upon agreement made by the homeowner and the KM BUILDERS representative, a Design Deposit Agreement is then filled out with the design fee written on the Design Deposit Agreement Contract and signed by the homeowner acknowledging the agreed/ upon amount and estimated project amount.  This Design Deposit Agreement clearly states that “The total sum shall be applied at the time of the original proposal presentation of any proposal/ contract related to this Design Deposit Agreement and is otherwise non-refundable”.

The client’s recollection of the agreement is not what was discussed at the time of the consultation.  The client signed the Design Deposit Agreement in conjunction with paying the Design fee.  Any representative of KM BUILDERS would not under any circumstance make such a proposition.

The client admits that the consultant did a great job (see attached email) and therefore, the consultant earned the collected fee and presented the client all of the agreed design work.  The client did not request a refund until after the design process had been completed.  Thus, the fee is reasonable and not refundable.   

***** ******

Consumer Response: Complaint: ********

I am rejecting this response because:

of the principle involved.  When a person states something that is in addition to the written documents, I take that as an honest, unsolicited effort to obtain the work under consideration. As stated in the original complaint, Mr. ****** knew that I was not interested in paying any sort of design fee, so much so that he personally reduced the $1500.00 fee to $750.00.  After I continued to object paying a design fee, it was then Mr. ****** stated he was willing to refund the $750.00, should I not agree to go through with the project.  That's the only reason I went forth, trusting a verbal, and what I thought was a good-faith offer by a reputable business. 

Appreciate the BBB's good offices to provide this forum.

Thank you,
******** *******

Business Response:

KM BUILDERS has maintained an "A+" with the Better Business Bureau for several years.  We strive to ensure our clients are well taken care of and communication is key.  A negative review is extremely rare.  This complaint has been discussed in-depth and to everyone's recollection; the verbal agreement stated above did not occur.  We are deeply sorry for the confusion and will agree to reimburse 1/2 as a compromise if the customer will agree that this is fair and the matter will be settled.

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ******** and find that, with the exception about the referenced statement having been made, this resolution is satisfactory to me.

The BBB role in this matter is most appreciated.

Thank you,

******** *******

1/14/2014 Problems with Product/Service | Read Complaint Details

Additional Notes

Complaint: KM builders were hired to design and build an expansion to a house being considered for purchase. They designed a construction plan that did not meet city setback requirement & could not be financed or built. The owner is ***** ****** refused to return the earnest money that was taken for the construction.

Desired Settlement: Refund earnest money and money paid for design

Business Response:

On 7/20/13 and again on 8/7/13 Mr and Mrs  ******* hired KM Builders’ designer, **** ******, to design a concept for a room addition to a home they were considering purchasing.  They were told that we could not obtain a plot map for the property to ensure that any addition would be within the building setback requirements for that subdivision. We told them that they would need to obtain that from the bank or the current owner. They pushed **** to develop the design concept for the addition without the plot map due to the fact they didn’t want to ask the homeowner for this and had a deadline to meet with their financing. **** worked day and night designing and pricing several different designs due to the fact that the *******s changed their mind about what they wanted repeatedly.

The *******s finally agreed on a design and asked **** to present pricing and a proposal to take to the bank. They put a down payment of $5000 toward the finalizing of the plans, scheduling and starting the project as soon as possible after they obtain the property.

The *******s later called and said they were financing there property and had received the plot map from the bank. They said that the room addition would not completely fit on the property as designed. We told them that we would help them apply for a variance or we could again quickly redesign the project to fit on the property and that there would be no additional charge. They said they would consider that.

The *******s later called and said that they had completed the financing of their home and that they wanted us to refund the money they had paid for the design and the money they had paid for the deposit to build the room addition.

I told the *******s I would be happy to apply the deposit of $5000 toward any room addition that we design and build onto their new home and that, in addition, we would not charge for the re-design work.

In conclusion, we have expended a larger amount of energy and costs for the ******* project especially in comparison to average projects in this price range - thus we have earned the money paid us for work delivered. Our position has not changed – we will still be willing to apply the deposit of $5000 toward any room addition that we design and build onto their new home and not charge for the re-design work.



***** ******

Consumer Response: Complaint: 9817799

I am rejecting this response because:

KM Builders were hired to design the expansion over other builders because **** ****** agreed to work on our time frame and we made it clear that there was a time crunch to get the design submitted to the bank to allow us to get financing. At no point during the design process did KM Builders emphasize the need for the survey map of the property. Their statement: "They were told that we could not obtain a plot map for the property to ensure that any addition would be within the building setback requirements for that subdivision. We told them that they would need to obtain that from the bank or the current owner. They pushed **** to develop the design concept for the addition without the plot map due to the fact they didn’t want to ask the homeowner for this" is blatantly false. In fact, during the design process we asked on multiple occasions if there was enough room for the expansion in the front yard and were repeatedly assured by KM builders that there was. **** ****** informed us that he had taken measurements personally and there was ample space for the design we were developing. The set-back requirement for the subdivision is apparently public information available from the city.  The design for which we signed the contract does not meet set-back requirements and can not be built. KM builders were grossly negligent in their design process and provided us a product that would not meet city regulations. They cannot claim the deposit paid to build it.


**** *******

Business Response: Thank you for allowing us to clarify our position.  As pointed out in the response, KM was hired with the understanding that we would design the customer's plan quickly to meet the deadline for closing.  The promise was taken very seriously by us and that goal was met. Before closing there was a completed set of plans, detailed proposal, and signed contract for the construction of an addition in the front yard of the home you were purchasing.  This was a tremendous undertaking because in addition to it being a large project, we went through several other plans and renovation ideas on the existing house to arrive at the final plans, all part of the outstanding service that was provided in getting to the final result. 
The plans were based on there being a 30’ building setback from the front street.  We can disagree on what was said, but it was common knowledge that KM did not have a plot map because that comes only from an actual homeowner.  In the absence of a plot map for the specific site, the standard building practice would be to use any information filed with the city.  For some years there has been no filing of actual plot maps (with residential home sites and property line designations) with the city of *** *******.  After extensive searching, we were able to locate the neighborhood plot plan (without property lines or home site designations) that clearly shows a 30’ setback building line at the property in question, filed at about the time the subdivision was developed.  This setback is common and to be expected in a neighborhood like of this nature and this made it a very reasonable parameter to use as the standard for the plans that were being developed.  As was pointed out, there were special trips to the house just to measure and validate that the plans being developed fell within the criteria filed with the city years ago, the only known documents to which we could refer.  It further shows that we take the development of our plans very seriously and there can be no question. given the long hours and intense schedule that were endured, that we were all acting in good faith and under reasonable assumptions. The plan that was developed falls within the requirements of the city, given the information we were able to obtain from public records.
When unfortunate events like this occur and the problem was no fault of either party, the solution is for us to offer a remedy to the client at no charge.  The offer was made to re-design as needed at no additional cost and the money set down as a deposit would be credited to the new plans that we develop.  Were we to credit the money back, not only would we be outside of the bounds of our contract, we would be taking complete ownership of a problem that was not ours.  Our offer still stands, we would be glad to re-design at our expense and apply the contract deposit to the new contract.  If the decision is to move forward you have lost nothing. If the client has simply changed their minds about doing a remodeling project, which they are certainly free to do, they would rightly surrender their deposit according to the terms of the contract.  KM Remodeling has incurred significant expenses in getting this project to this point. Abandoning this project and requesting a refund after a contract has been agreed to is not a reasonable request.  We hope the client will choose to let us redesign and build their project per the terms of the contract.
***** ******

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