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Design and Build contract

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  • Design and Build contract

    I have a design and build contract with a limited company.
    The contract was for them to build me a house by 20/12/2012 that passed building regulations.
    The builder has made so many mistakes that the knock on effect is that they have not had the money to complete the work and are now nearly a year overdue.
    We are up to date with our agreed instalments.
    Luckily the build quality is good although we have an issue with the render and a problem with the drains but nothing we cant fix.
    If they complete the work then we still have an instalment of £23k plus £3k defect retention to pay.
    We have however had to pay for some of the work and materials that they should have done because they couldn't afford it.
    The builder says the project has already overspent by £55k which I can quite believe due to their mistakes.
    I estimate that we have spent £5-8k on work he should have done and that there is £12-15k work left to do (He says about £7k left to do)
    It is clear he cannot finish the work.
    He came to us on Friday and advised us he would become insolvent in 2 weeks if he can't get some money in to rescue the business.
    In reality we have a nice house for the money we have paid but it is not complete.
    The builder wants to end the contract and has asked us to pay him £15k to do this.
    He says if we dont then he will become bankrupt and that the insolvency administrators are very clever and will claim back the £55k overspend from us using a law that I have heard of.
    Any advice please
    Tags: None

  • #2
    Re: Design and Build contract

    Go a get a Solicitor before this all happens for the sake of 55K its well worth it!

    Comment


    • #3
      Re: Design and Build contract

      I am waiting for a solicitor to get back to me so that he can look at the contract for me and if we settle I will need him to draw up an agreement.
      I just wondered whilst I was waiting for him if anyone had heard of this law to claw back overspends even if they are not in the contract

      Comment


      • #4
        Re: Design and Build contract

        Originally posted by irritated parker View Post
        The builder says the project has already overspent by £55k which I can quite believe due to their mistakes.
        What proportion is £55,000 of the quoted completion price?

        It is clear he cannot finish the work.
        Due to his incompetence, you must complete it yourself. Deduct the cost of doing so (get professional quotes), plus the money you have already spent, and then some more (for aggravation and inconvenience), from the £23,000 final installment. I suspect that this will leave nothing.

        He came to us on Friday and advised us he would become insolvent in 2 weeks if he can't get some money in to rescue the business.
        If he overspends by £55,000 and still screws up, he shouldn't be in business.

        The builder wants to end the contract and has asked us to pay him £15k to do this.
        He wants you to pay him £15,000 to release you from a contract that he is incapable of fulfilling. Needless to say, this should be refused.

        He says if we dont then he will become bankrupt and that the insolvency administrators are very clever and will claim back the £55k overspend from us using a law that I have heard of.
        It is true that should he go bankrupt, the administrators will look to see if money is owing. If at first glance, it appears there is, then you will have to argue the point. Given the evidence you have to hand, it may be that he actually owes you money.

        Comment


        • #5
          Thank you

          Comment


          • #6
            [oops, old thread. I expect this is long since resolved]
            Lawyer (solicitor) - retired from practice, now in academia. I do not advise by private message.

            Litigants in Person should download and read this: https://www.judiciary.uk/wp-content/..._in_Person.pdf

            Comment

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