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Issue with the granny flat builder

Discussion in 'Development' started by Nomad Investor, 19th Oct, 2015.

  1. Nomad Investor

    Nomad Investor New Member

    Joined:
    6th Oct, 2015
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    Location:
    Sydney
    Hi Guys,

    I need some advise so basically I deal with this project manager (company A) for my granny flat construction and then within the contract it says (Company B) which is the partner of company A. Everything went through smoothly for my first granny flat.

    So for my 2nd granny flat I decided to go with the same builder(Company A and Company B). What was happening is my granny flat was late for 6 weeks based on the contract and it is not finished yet. So I was trying to find out from the Company A (since I deal with him most of the time) and he told me that he has some issue with the Company B and they decided to split out the business and Company A couldn't contact Company B anymore (I already told Company A that I've dealt with him to begin with and why now is my responsibility to chase Company B)

    I managed to get in touch with company B and he said it is almost done (At least I got the picture where the granny flat is almost finished except the inside bit, fixture, tiling, etc. I tried to keep calling company B but its very hard to get in touch with him. Legally, what can I do considering they have some kind of insurance? Sorry for the long story as I'm just so frustrated and stressed out

    Thanks Guys
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Read your contract.
     
  3. Tenex

    Tenex Well-Known Member

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    Location:
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    It is best to go through the contract to understand who you are in contract with. You will be dealing with that company. Dealing with them is different to having a contract with them.

    A cheaper but lengthier option is to go to fair trading, assuming you are in NSW, and start a complaint / tribunal process. Often they are useless unless if you go to an actual tribunal / hearing to resolve the matter.

    A more expensive but faster and more effective way is to pay a lawyer who knows business / consumer contract law very well to read the contract and write a threatening letter to the party that you have the contract with and start asking for damages for late delivery or else.

    While this is happening you can leave a voicemail for the person that you are in contract with. More often than not they suddenly become very available.

    You will really need to understand the contract before you do anything. Legal letters usually dont cost that much but they do the trick. However if they dont pay attention then you have to be prepared to take them all the way.
     
  4. Nomad Investor

    Nomad Investor New Member

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    Location:
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  5. Nomad Investor

    Nomad Investor New Member

    Joined:
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    Location:
    Sydney
    Sorry if I need to bring this up again so basically I terminated the contract by emailing the builder and by using this clause below

    Termination of Contract by owner
    If the contractor:
    -is unable or unwilling to complete the work or abandons the work
    -suspends the work before completion without reasonable cause
    -becomes bankrupt,.....
    -fails to proceed diligently with the work
    -fails to remedy defective work or remove faulty or unsuitable materials or
    -without reasonable cause fails to comply with an order or direction of a public authority with
    respect to defective or incomplete work, which would substantially affect the quality and/or progress of the work

    the owner may, if such default can be remedied, notify the contractor in writing that unless the default is remedied
    withing 10 business days or such longer period as specified, the owner will terminate the contract

    if the contractor does not comply with the owner's request within the time allowed, or if the default cannot be remedied,
    the owner may terminate the contract by giving written notice to that effect to the contractor

    if the owner terminates the contract due to the fault of the contractor, any unfixed materials or fittings on the site may
    be retained by the owner. Following the issue of a notice by the owner under this caluse no unfixed materials or fittings
    shall be removed from the site by the contractor

    I also have lodged a complaint to Fair trading. Basically I'm frustrated and not sure what else to do, I hope I can get some suggestions :(

    The builder asked me to pay some of the materials before terminating the contract so basically 15K is for the "fit out" invoice which then he asked me to pay 5K but I don't even know where he is up to, he didn't give me the picture or the key. I know it already has most of it except the fittings and fencing, etc. The project was originally promised to finish within 3 months but now it has been 7 months :(

    Shall I engage private mediator?
     
  6. Azazel

    Azazel Well-Known Member

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    You need a boogie woogie bugle boy for company B:
     
  7. thatbum

    thatbum Well-Known Member

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    Perth, WA
    How confident are you in handling the situation and knowing your rights? If not particularly, I would be getting some advice from a solicitor.
     
  8. Nomad Investor

    Nomad Investor New Member

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    Location:
    Sydney
    No i'm not that 100% confident :(. The problem is that this builder has similar issues currently with his other 3 clients
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    So the builder can claim that they're well versed in mediation