Builders vanished - advice needed pls! Post Reply

[moo moo]

Hello,

I'm desperately hoping that someone can offer advice re. a building company not completing - when they've fully been paid!

We've recently undertaken a massive re-furb on our home with an interior design company, who also project managed the build, using their own builders. We've paid the full amount owed to them, as they said they needed the final payment to complete the job, however they've failed to finish all the work and we now find ourselves with damp coming through the walls, windows not being fitted correctly etc on the new extension, as well as a mountain of other jobs that haven't been finished.

We've tried to be reasonable with them by emailing and calling for updates, but they just tell us that the company is having financial difficultly (obviously not our problem). Since they have completely failed to commit to sorting out the building issues and finishing the job, we were wondering if it's worth while using a solicitor? Has anyone had a similar (unfortunate) experience with flakey builders?

Any advice would be appreciated!

[legalconsultant]

What a terrible experience. I'm a construction lawyer running a consultancy BTC and happy to help (search my other posts for similar advice to others). Here's some food for thought:

First of all, dig out your contract (or whatever you have that could constitute a contract). You have to work out your obligations e.g. you may have paid money which is not "due". Check the builder's obligations too so you know what to expect by way of end product.
Second, you need a record of the problems. Take photos. Keep a log of every (yes every) phone call you make, verbatim if possible, particularly what the person you speak to say. Be persistent.
Third, you should up the ante by writing to the builder about all the above.
Fourth, you should seek advice from Building Control and/ or engage an independent building surveyor to assess the works (and the value of them) required to complete the job to the original specification including correction of defective work.

I suggest you do this swiftly. It's possible the company may go AWOL i.e. cut off the phones. If insolvency of some sort is commenced, then it will be traceable if "Limited", though pennies in the pound will be small comfort - what you need is the work doing, quickly. You can engage another builder to complete the work, and sue the original builder for the cost. Risks attach to that course of action, as well as the upfront cost, but if it is a question of "habitable" then you may have no choice in the short term. Keep a log of all your costs, however small, together with invoices / receipts.

I am happy to help you through this; feel free to PM me.

[supergirl]

How on earth did they manage to get you to pay the full amount????

You should alway be wary of builders or any contractors asking you to pay the full amount when the work is not finished. You should slways keep a minimum of 30% of the total bill that should be invoiced to you once the work is completed. It is common practice and whoever is saying otherwise is not professional so stay away.

I m an interior designer and we would always ask for 40% to start the project then 30% in the middle then the balance upon completion/installation (if we style the house as well). Often we work we our network of recommended builders and we always project manage.

You dont have a big leverage now you ve paid everything but get yourself a solicitor asap snd report them to the ombusdmen (sp?).

Good luck.

[Tpa]

Is it the Interior Design company or the builders that are claiming insolvency?

[szerma]

I am in a similar boat but I kept all records and emails etc all along. I am now in the process of taking the builders to small claims court. You should start off writing them formal letters demanding what you want and saying you are willing to dicuss any arrangements "without prejudice". Then start threatening with court, then take them to it.

If you are like me, i.e. paid all money you had for the works, and don't want to spend a fortune on laywers, you can do it yourself. I have been to small claims before, representing yourself. If your story is clear-cut, there is nothing to worry about. If the builders don't respond within the deadline given them, hire someone else to do the work, then sue them for the amount. Obviously if they go awol, change address, dissolve company etc - then it's really hard...

Best of luck,

Maja

[moo moo]

Thanks for your responses, they've all been extremely helpful.

Currently in discussions with the director on how we can move forward with completing the job - he's presented me with a £15k quote to do all the outstanding work, but there's no way that I'm going to pay for work that I've already paid for - so we'll see how that goes!

Thanks again for all your help!

Moo Moo

[jimisayo]

Contact Angela Lyon who is a double chartered Buildings and Quantity surveyor with over 30 years experience. She has rescued home owners in similar situations with errant builders and can provide you with a survey on what is left outstanding, what needs to be re-done, and what it should cost. This could save you a fortune. I can't believe this present company are trying to get more out of you.

Call Angela on 0208 679 6363. Her company is called Orbital Chartered Surveyors.

[Billbailey]

I agree with Jimi, speak to Angela before committing anymore money.

[Jonathan-Plant_Guy]

Yes, this is exactly the thing Angela Lyon can help with. Such a lovely lady, too.

[jodesy]

Hi moo-moo
Do you care to name the builders as it sounds quite familiar! We have had a similar thing with our builder - an absolutely lovely guy, but a cowboy we've discovered. We agreed a price for the total works to completion by mid August, it was promised it would be finished, to trust him, and "certainly won't be over £80K".
Come mid August, the flat was barely livable. Nevertheless we persevered and project managed every single day since then, often running around buying stuff to help them finish. After a month, they were still not finished so we kicked them out and asked for the final settlement, thinking it would be LESS than the agreed amount since a lot was still left to do. However, I was stunned to get a final bill a whole £15K OVER the agreed amount!
His name is D C Builders, and from what I can tell, has had 3 companies previously, all which have been dissolved. No doubt for a similar reason why we are now refusing to pay him the balance until we get further legal advice.

So word of advice to anyone taking on an independent builder, ask for their company registration details and VAT reg number, and check it on www.companieshouse.co.uk, and http://ec.europa.eu/taxation_customs/vies/ , to check if a VAT number is valid.

[olive]

I agree with jodesy that anyone should do a company check as a starting point as a large amount of money is involved in a building project. A company check can provides a check on longevity and financial state of a company to some extent. Don’t forget the relevant directors check too. You would be surprised to know how easily anyone can close and start companies. If someone has started and dissolved the same line of companies several times, obviously something is amiss. Would be worth checking for CCJ history just in case. Some company show only their trading name in their website – you need to find and check the registered name.

[IrishEyes]

It may sounds obvious but technically they've stolen from you. I would report them to the police. Did you by chance have their registrations (van) numbers ?

You can check out their directors details here by typing in their details:

http://companycheck.co.uk/


Best of luck

IE