Problems with builder

M

Maverick74

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I signed contracts (10%) with builder 8 months ago on a house that was already half built. He promised me earth, moon and stars. Since then he has not been on the site and house remains exactly same as when i 1st seen it. He won't take my calls and all communication is thru solicitor and estate agent. He keeps saying he'll be back on site next Monday but never is. Does anyone know what my options are???

Any help would be appreciated

Mav
 
Not sure, but i don't think so!!! I made a mistake by telling the builder that i was not in a hurry. However I didn't mean for him to head off for 8 months and do nothing. I've heard rumours that he is broke, can't get credit anyware and no one will work for him. I was in contact with the last contractor he had working for him, but he left cause he didn't get paid and the builder wasn't providing materials on time??

What you think???

Mav
 
It doesn't sound good. Did you not read the contract before signing it and handing over your cash?!? :eek:
 
Ring your solicitor immediately. It is unlikely that there is no completion date.

Marion
 
Left that to my solicitor who i've used for over 10 years. However it seems that there is no completion date or building agreement in the contract. Waiting for my solicitor to ring me to find out exactly whats in the contract. I should have read it but trusted my solicitor to make sure it was all ok.. Big mistake. What do you think my options are??

Mav
 
So do you think getting out of contract is the only way to solve problem. House prices have gone up by at least 50k since I signed contracts which means I'll have to fork out more money for a different house and finding the right house is hard work..

Mav
 
I would agree with the other posters on contacting solicitor, but the builder might appreciate a get-out clause also.

Consider the option of having the existing work and site valued relative to time of contract and offer him that amount extra on minus 10k already paid.

The main issue I would see is another builder agreeing to comple on the basis of not knowing what the previous issue was and at a later stage standing by work that is not his.
 
Could i not get an engineer to assess site at the stage its at and give it the ok and then let a potential builder take over the project at that stage. He wouldn't have to stand over the work thats already done, only the work he'd carry out. Could that be an option? Would it be complicated to pay off current builder and then hire a new one?

Quick Q? The timber joists have been left exposed for over a year. I've been told that they will have to be replaced cause a year of being left in open even if they are treated will damage or rot them. Can anyone confirm this for me??
 
Do you own the site Maverick?

Yes, the joists would need replacing and this cost would have to be factored by the engineer.
 
no, its a bit tricky. Its a small development of 6 houses, each one on its own site of .5 acre but there is a common driveway into development and a green area just for the 6 houses. the builder is supposed to complete the roadway and the green area as well but hasn't yet anyway. Do you think i could still buy house/site at the stage its at.. Who would complete the roadway and green area if builder won't. Will i be stuck for a portion of it if i take over my own site??

Mav
 
If I was to hazard a wild guess, I would imagine that the builder would be happy (through non-performance) to gazump you at this stage of the game. Probably has low scruples based on non payment of contractors.

If that is the case, you want a place to live and he has a place to live and more than likely money in the bank, so he might be content to wait. It is then a mind game, so sitting and waiting with no contact and without appearing desperate might persuade him to finish and get his 2005 money?

By his performance so far, cannot imagine roads and green being finished either way, which would leave it to estate to form a management company or farm it out to one.
 
I doubt that estate will ever be finished. 'Your' house was there with the joists on to make it look like there was activity but evidently the other 5 houses are not sold and the job will not go ahead unless 4 out of 6 are sold....or even 5 out of 6. Otherwise the accounts are a mess.

Enquire off the EA as to how many are still 'available' and if they are not sold by now ...even at the 2005 price.... then exit.
 
The option of buying site as is seems to be possible. I would be concerned about the common areas being finished though. I was told that the builder would have to have lodged a bond with the Co. Council relating to the finishing of common areas at the start of project.. Can anyone confirm this pls?? I was also told that the builder would have 5 years from date of planning permission to complete common areas otherwise council would take bond and finish common area. Anyone know about this sort of thing.

Need help

Mav
 
Maverick74 said:
The option of buying site as is seems to be possible. I would be concerned about the common areas being finished though. I was told that the builder would have to have lodged a bond with the Co. Council relating to the finishing of common areas at the start of project.. Can anyone confirm this pls??
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Yes. Some county councils dick around with calling in the bond and it expires . I must warn you of that !

You will have to satisfy yourself that :

1. The Bond Exists and is lodged. An undertaking from a solicitor that it will be lodged by a date may be enough., An undertaking from the builder is meaningless in the extreme .
2. Duration of Bond (does not expire at an early stage while council looks away )
3. That the council in question are known to call bonds in and do the work the builder neglected . Some are good and some useless.
4. That the builder cannot and will not stop them because he has mates in there.
5. The fact that if the council call in the bond and finish it themselves they effectively MUST take it in charge there and then....very tricky that.

Your solicitor will advise you but I would talk to a local councillor first maybe .

If only one plot is sold out of 6 (yours) the builder probably needs to sell 4 to get the money to proceed. I have seen 'estates' like yours being constructed willy nilly for over 20 years and with no footpaths for 10 and no road surface for 15.

Each new purchaser wrings another concession out of the builder, 2 new street lights, a bollard, a sign at the entrance.

I still think the other 5 houses are unsold and that the builder has no money. Have you checked ??? Be careful.
 
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