Help with slow builder!!!!

Hi all, I have been developing for over 15 years now and so far been lucky with the builders I have used.
Currently I have a 5 unit development at fixing stage that is running on slo mo. Here are some details.

Builder is getting paid monthly via a QS. (commercial loan)
Project is already at 14 month stage.
I know the builder is in cash flow problems atm.
Kitchens have been paid for by builder but waiting install.
Stair case been half paid.
Some Scaffolding still on site.
Services trench not started.
Landscape not started.

I have not issued builder with liquidated damage claim for I think it will not help the situation, plus it could backfire with builder charging for variations.

I dont think the builder is going bankrupt.

Has anybody have experience with a builder in trouble? How best to manage the situation?
Thankyou

 

Have you engaged a Project Manager ?

 

Yeah I've been there. As painful and costly as it was (from an incremental perspective), I sucked it up and moved on to another builder. Get them to finish up what they've been paid to do then cut them loose.

 

Hi there,

You heard the saying the squeaky hinge gets the oil. You need to start putting pressure on the builder. They will only listen when you talk money otherwise your project will continue to suffer. 5 townhouses should not take more than 10 months to complete and his delay is costing you money.

If the builder is not aware of that, he needs to be. Call for a meeting and see what his reason are and let him know the effects his delays are having on your pocket and that the bank is putting pressure on you the complete the project.

Give him a week to regain traction and organise his subbies and if nothing changes send him a notice under the contract. You need to start getting contractual, especially if he doesn't respond and you need to terminate the contract. You need to show that the builder is in breach of contract hence your termination otherwise doing nothing will not change your current situation.

All the best.

 

How difficult is it to change builders mid way?

 

Pretty damned hard - no one wants to take on other people's work..and responsibility

 

Another option may be to speak with some of the trades/sub contractors and suppliers to make sure they've been paid as required as you don't want the cashflow issues you mention effecting the sub trades and suppliers. Usually not a good sign for the builder.

 

That's what I thought.

Especially at fixing stage there's not a lot for the new builder to make to justify the risk.

Who's going to provide builders warranty, plumbers certificate etc.

 

Builder's cash flow issues are one of the worst things that can happen in a construction process. I have been there as well and got a good outcome in the end, but it took months to resolve the situation. The builder did not go bankrupt but the delays and lack of confidence in their work were enough to cause me huge headaches.

Before taking any drastic action, I would very strongly recommend that you speak with a specialist construction lawyer, because your actions may impact on your outcomes if the situation gets worse and ends up in court/tribunal. .

I hope that your builder solves their issues and complete your project. However, if you get in a situation where you have no other option than terminating the contract, you may need to engage the subcontractors directly because most builders don't want to touch other builder's work in these cases. They often think that you did not pay the previous builder or that you were a difficult client, so you will need to make them confident that you will pay them on time and provide them with reasonable working conditions.

Good luck!

 

Do you have a set finished date built into your contact?

 

Hi all.

Just an update. Have spoke to the QS about negative variations in case we need to pay the trades directly. Luckily it looks like the project is moving again. Critical stage next week when the kitchens and stairs are installed. Once thats in then there is not much left to the home straight.

Fingers crossed for next week.

 

Good luck hope it all goes smoothly

 

Hello
In my experience, it all comes back to relationships with your construction team - how forthright are they and how resilient is the partnership? In other words, time for a full and frank discussion with your builder and you both need to listen and assist one another - putting the boot in only costs money (usually yours and it goes to others - usually solicitors!) - if you need a hand, let me know!