Nervous about claiming Liquidated Damages

Dear all,

I'm nervous about claiming liquidated damages from the builder, especially about the possibility of being harassed by the builder in sharing handover documents (or anything else). Would be great to get your advise/ learn from your experience.
Below are the additional details:

- Queensland builder & the contract is Master Builders queensland
- Build delayed by more than a year, but liquidated damages can apply for a minimum of 4 months
- Current status of the build is that practical completion almost done
- Liquidated damages can range from 5K to 10K
- Lawyer ready to take on the case once retainer is paid
- Additionally, Builder has been extremely difficult to communicate with in general

Thanks.

 

Claim it at the end?

 

Lawyer had suggested to deduct it from the final Practical Handover invoice, else builder will likely not pay it all. Will check with the lawyer again.

 

Only a solicitor should be claiming LD on your behalf. The whole thing is needing legal advice to make a decision. And be prepared for its cost.
The biggest risk is they say - OK we keep the keys and you find you are lawfully locked out of your house until they are paid in full and they wont do a thing further and so there may no occupancy cert issued. For $5-$10K its really needs to be asked if the risks are worth it developing into a far more costly legal dispute. $10K of legal work isnt a lot of time and on a $400K+ build its 2.5%..... And this needs to consider their legal claim on you. You could end up paying two lawyers

 

If you have a lawyer acting for you then I don't know why you would asking randoms online. What if we said something different? I'd be ****** off if I was your lawyer.

 

Thanks @thatbum for your response. Reason I'm asking is because I don't know for sure if lawyer's incentives are aligned with mine - in retainer model, they get paid even if the outcome is unfavorable and monetarily benefits if it drags on. Essentially I'm pleading ignore and don't know what I don't know and hope to benefit from the experienced folks in this group.

 

Thanks @Paul@PAS for your response. What do you mean when you say legal claim on me?

 

If you're able to read a contract you shouldn't need a lawyer. Anyhow, what's your relationship with the builder like? If they'd shaft you at the drop of a hat i wouldn't lose any sleep about deducting LD's. Alternatively, you can talk to them, advise them of your entitlement, and as a compromise maybe they will give you some upgrades in lieu of you deducting LD's, then everyone's happy......

 

You breach the contract they stop work and sue you for the balance of work they wont do. You breached the contract and mfrustrate fulfiling the contract going forward ..And make you liable for their legal costs. And you dont have an occupancy cert. This is how law works. Its not a case of send a letter and the cash rolls in. ALL legal remedies have implications. Surely your proposed solicitor has said that. They cant just send a costs estimate and not mention the downsides and upsides. The courts are filled with people who all think they are right. Often the best winners are the legals.

And you can own the land but be fenced out of the site.

 

Honestly, unless you have a specific reason to think your lawyer is doing their job properly, then that just sounds a bit paranoid. Lawyers are literally there to act and advise in your best interests. It's nearly unheard of that they would drag things out purely for their own financial gain.

Do you not trust your doctor either? After all they can potentially financially gain if they keep you sick!

None of the "experienced folks" in this group is going to give you better advice than the lawyer you have instructed. Listening to them would just be a waste of your time and money when you go back to your lawyer and they have to do extra work to explain why they were right in the first place.

I would know, because I have to do it myself at work.