Building contract dispute

Rad1

Registered User
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2
Hi,
We are in dispute with our building contractor regarding amount of monies owed.
The final certificate has been issued but is definitely incorrect as there are charges for items either not supplied or which were already included for in the drawings & spec not to mention several other very dubious claims.
The money is now being demanded via legal letter.
How do we best proceed to challenge this ?.
Can we refuse to pay any of the amount at this point if we know there are even a few claims that are definitely incorrect ?.
Alternatively, is there a facility to request that the final certificate be amended for these inappropriate claims (that contractor is definitely not entitled to) and would we then be expected to pay the balance ?.
Or, can/should we be looking at arbitration at this stage and if so, how does arbitration work i.e. if we request it, are the other side compelled to agree ?. Also what (and who) does it involve ?.
Thanks
 
You mention a final certificate, who was this issued by, was it a QS or some other 3rd party, if so your initial move would be to query with them. Legally any dispute would probably be with them for an incorrect certificate rather than the builder.

The question of pay nothing until you have agreed the final amount, versus, pay what you think you owe and then argue about the rest is a tactical one. To be on the moral and legal high ground you should pay what you consider due and then argue the rest. However this is often a bad negotiating move.

You need to look at what the contract says about arbitration.

Note that arbitration is a highly defined process and not to be entered lightly. Mediation is a very different much more casual process if the contract allows should be considered before arbitration.

More info, amounts, who is certifying, nature of the dispute etc., would be needed for a fuller answer.
 
I'd say the contract would be quite important here. What did you sign up for and was that what was built.
 
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