Complaint Review: Lincoln Logs LTD - Auburn California

On July 29, 2000 we entered a contract with Lincoln Logs to supply us materials for a home. Entering into this contract was the costliest mistake I have ever made. Due to our inability to find contractors that will build it for anywhere near our budget (much more than what Lincoln Logs lead us to believe it would cost) and what we consider deceptive business practices on the part of Lincoln Logs, we cancelled this purchase.

We entered this agreement after leaving a previous meeting with a Lindal Cedar Home dealer located across the street from Lincoln Logs. They had just told us, in a very honest manner, that Lindal Homes were more upscale than the plans we showed him and we would not be able to utilize them if we wanted to stay anywhere near our $150,000 budget. Chuck Clark, manager of Lincoln Logs, however, looked at our preliminary plans, listened to us describe more details, our building site, and the features we already had, then told us that a Lincoln Log home fit our plans very well, including our budget.

In fact he made a statement that their homes typically cost around $100-$125 per square foot and that since we already had a garage, well, septic tank, and power to a previously prepared level building site, our 1,400 square foot design was in the neighborhood of $155,000. We left him preliminary plans with written descriptions of details that included our budget. At a later date we gave his draftsperson a similar written description where we had added about 100 square feet and had increased our budget to $170,000.

Knowing that these types of project typically go over budget, we actually were willing to spend $200,000 for our desired home, complete. During the finalizing of the plans we agreed to several suggestions from Lincoln Logs to help reduce costs and we made a few minor changes typical of people contemplating their future home (window sizes, minor adjustments of interior walls, etc.) We did not make additions valued anywhere near $30,000! Regardless of their value, we feel Lincoln Logs had a responsibility during the planning stages to keep us informed of changes in approximate construction costs.

We also entered this agreement because Chuck said that Lincoln Logs maintained a list of qualified contractors that met certain standards and that there were many in the area of our construction site that he would help us negotiate with. These standards included prompt, itemized quotations and the specialized skills required for Lincoln Log homes that enabled them to build very efficiently, putting the log walls of the home up much faster (thus less expensive) than a traditional stick built home. We started with two of his recommended contractors. Both took many weeks to give us a bid. Both were very sketchy, incomplete, and poorly itemized. One contractor bid an amount that would have resulted in a rough shell costing more than our entire budget. The other conveniently forgot to include a few details, the foundation and the roof.

Letters sent to this contractor's business address were returned by the post office undeliverable. Hardly a businessman a reasonable person would contract a project costing hundreds of thousands of dollars to. When these two recommendations fell through, we asked for additional sources from Lincoln Logs. We received one more recommendation; a contractor 100 miles from the building site. He said he would have to charge more than usual due to the additional travel expenses and that fact that he had never built a log home before, thus he couldn't build it as quick as a traditional stick frame home. After many weeks he gave us a bid, verbally only, so I am no longer quite sure what it included. I do remember that when I added on the cost of the Lincoln Log package and the fixtures he didn't include, our cost would have been around $300,000.

During the early planning stages of our home I attended the Lincoln Logs Stack & Build Seminar and Open House, where Dave Patton, VP of operations, made the statement a Lincoln Log home won't cost you anymore than the equivalent stick built home. After failing to find a contractor through Lincoln Logs, I interviewed four in the area. When the first one gave me a bid comparable to the previous one I started talking to them more informally. All four told me that my budget was realistic for my design; they just couldn't do it for that amount with Lincoln Logs. In fact, all of them said that they could build the entire home with stick construction, including materials, for approximately the same as what they would charge for the log home, not including the cost of the Lincoln Log supplied items.

Lincoln Logs also took advantage of every minor change to increase the materials package cost. The most costly was when they adjusted the plans for an 80 pound snow load roof. At the time we signed the contract we saw that Lincoln Logs supplies a 60 pound load roof so we brought this up with Chuck. Although, at the time, we thought we needed a 100 pound roof, he said that this cost would be minor, and to be glad we didn't need a 240 pound roof like a community about 40 miles from our site, where there were numerous LL homes. Later, when the increase came out to over $5000 (not including additional labor costs) I asked what additional materials they had to provide. When it was obvious that the additional materials couldn't cost near that much, Chuck admitted there was also "some engineering costs" included. The sales literature they gave us with the contract said that the engineering would be provided free. Also, we disclosed where we wanted to put this home, a place Chuck said he was very familiar with, before he gave us the initial price of the home.

After this fiasco we got gun shy about managing our own construction so we pursued other avenues and were able to purchase a quality custom built home, over twice as large, including a large lot with a spectacular view and an oversize 3 car garage, in another location nearby for less than what we would have paid for the LL home alone.

Due to some carefully written weasel words in the fine print of the contract, we have settled for a refund of about 25% of the over $6100 we paid as a down payment. With unutilized building permit costs and miscellaneous costs, we are now over $5,000 poorer and have wasted hundreds of hours of time. Now my main goal is to warn others of Lincoln Logs sales practices. Chuck Clark expressly staked his reputation on the truth of his statements so let his reputation be what may.

Eldon

Graeagle, California