Work stopped on extension

[Gilson]

Hi

I employed a building contractor with good references to build a three component extension on my house.

He has employed a subcontractor to do the groundworks, raise foundations to concreted DPC level, provide groundworks to a new drive and raise steel pillars etc.

Work initially progressed satisfactorily although some delays were incurred due to delayed removal of spoil (by the main contractor)

I have made one stage payment in respect of works completed. I have received a second invoice that did not seem to relate to works completed or were even to have been completed within the seven day payment period

However work has now ceased apparently we are informed due to the failure of the contractor to in turn make the requisite stage payment to the sub-contractor. The sub contractor informs me that unless he is paid within the next 5 working days he will take the main contractor to court.

It appears that the contractors Limited Company is in financial difficulty and may go into administration.

Where do I stand? Can I cancel the contract and go elsewhere?

The contractor does not answer or return our calls and has no presence in his office.

 

[Alarm]

why is the "sub" telling you his actions with the "main"?

 

[Gilson]

why is the "sub" telling you his actions with the "main"?

Because in the absence of any contact from the "main" in response to telephone calls,written messages left at office to contact etc. I contacted the sub and asked why he was not continuing with the works as per his sub-contract?

 

[jeds]

Do you have a written contract. If so what type/form is it? If so it will state what happens in the event of non-performance.

Be careful if it does go into administration though. The administrator will pursue you for the second invoice and will probably not be in a position to judge whether the claim is valid or not.

The decision on what should be paid and when is normally made by the contract administrator - if there is one.

 

[^woody^]

Don't pay a penny until the status of the main contractor is known.

And don't feel sorry for the sub-contractor either and offer to pay him direct. Your contract is with the main contractor.

If the works are not completed as per the contract, in the time periods or stages defined in the contract, then yes, you can deem this a breach and determine the contract.

You may be liable for the pro-rata costs of work already done, but you are also able to off-set any charges with your own costs in sorting out the non-performance of the contractor and engagement of another.

If the company goes into administration, then the administrator may send a few letters with inflated invoice requests, but you will just refute these and settle on the lowest figure you can think of. They will not spend money chasing money which they wont get.

Send a recorded delivery letter demanding the work continue by a set date, or you will determine (ie end) the contract.

 

[Gilson]

Thanks

Will not pay a penny more to main until works completed match invoice.

Will not pay sub direct for work completed as already have paid main.

Sub is fully appreciative of this position.

Contract does have loose let out on non performance but defined 10 day notice let out if any formal financial constraint is placed on mains company

Have - at last - (3 times deferred) meeting with main tomorrow early a.m. - will report back after.

 

[jeds]

You're welcome!