Builder massively overcharged

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9 Oct 2023
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I got three quotes for a new build project for a 2-3 bed house on my land in London. My architect, also acting as contract manager, and civil engineer pushed me towards one contractor which they had suggested as they had worked with him before. I agreed as his quote was very similar. As planning permission was running out, the contractor prepared the site.

At this stage Covid started to bite and he requoted at a substantially higher price which he said were inevitable due to the inflation this caused. I accepted the quote for Phase 1 (the shell build) as the architect and engineer, whose expertise I was relying upon, raised no red flags. As the cost for Phases 1 + 2 were double the original quote, albeit there were some minor design changed, I decided to find my own contractors and do some work myself for fitting out

The Phase 1 work has been completed satisfactorily and paid for, bar the retention. I have since discovered items seem to have been massively inflated, some by as much a 10x. He has refused to provide evidence to justify the increased costs. His response is "Well, you agreed the prices".

It also appears that I have been double charged for one item and charged for walls that were omitted from the final design. I don't foresee any problem recovering this element.

The contract gives options of mediation and arbitration via RIBA. I sent the parties involved a copy of the mediation application form a week ago for signature but so far it has not been returned.

I feel badly let down as the architect and engineer were fully aware that the idea was to build at a profit. I was assured they could provide a turn-key solution without me having to do any work myself. However, even excluding the value of the land and the self-build VAT exemption, the build cost would have been well in excess of the market value had I allowed the contractor to complete both phases.

What are my options? Do I have any chance of recovering the overcharges? What responsibility does the architect bear as contract manager? Any advice welcome.
 
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Arbitration sounds like the way forward, with so many parties and different perspectives. I have no idea if its cheaper than going through the courts.

Blup
 
I'm going to try mediation first, I think. Hoping to discover if I have any change of recovering money overcharged.
 

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