Trade rip off - Victoria

Discussion in 'Property Management' started by Michelle Evans, 18th Aug, 2019.

Join Australia's most dynamic and respected property investment community
  1. Michelle Evans

    Michelle Evans Well-Known Member

    Joined:
    18th Oct, 2017
    Posts:
    257
    Location:
    Bacchus Marsh
    Hi all - so, as some of you may know I'm a property manager of 17 years. This is the first time though, I've come across a situation such as this.

    I have an owner, Sydney based, coordinated landscaping himself direct with a trade in Melton. Works were done (a few weeks later than expected but eventually completed). Trades first quote to the owner (on paper) was $6500. Owner paid a deposit, then the rest when completed. You think - done, no worries.

    But no - the trade came back to say here's an invoice for an extra $2500 as I had to put aggie pipe under the side garden and your builder stitched you up blah blah blah... the owner said, 'okay, show me some receipts for these extra materials and I'll pay it if it's justified...' no receipts and after some investigation, found this obviously wasn't done. Owner refused to pay the extra amount.

    Trade calls and leaves threatening voice mails and texts (so all in writing) that he's going to rip up the garden, you fing c... very nasty stuff. Reported to the police but of course, no one is hurt, so they can't do anything. Today - the sleepers, plants and pavers are gone.

    Has anyone been through this where a trade has carried out a threat to destroy the work they did and did they get justice? I'm interested to know (and will let others know how it goes) because it is criminal damage and trespass, you would think there's a pretty strong case and the way this trade behaved, I'd hate to think if he did this to a lovely old person who ended up being so scared that they pay the extorted extras.
     

    Attached Files:

  2. Dan Wood

    Dan Wood Well-Known Member

    Joined:
    18th May, 2019
    Posts:
    353
    Location:
    QLD
    Get the owner to take him to court, it'll probably be through small claims court.

    I'm not sure you as a PM can do much more, the owner organised it after all and not really your responsibility (apart from checking the work was done I assume).

    You're a great PM, but in this case I'd be suggesting the owner deals with their mistake of hiring an absolute horrible tradie.
     
  3. Michelle Evans

    Michelle Evans Well-Known Member

    Joined:
    18th Oct, 2017
    Posts:
    257
    Location:
    Bacchus Marsh
    Ha, thanks Dan - I'm helping where I can but the owner knows I can't make any reports for him and after listening to the vitriol this guy was spewing he's certainly not someone I'd feel comfortable dealing with them! Was more just trying to see if anyone had any success in fighting such a situation as I'd hate for him to get away with it!
     
  4. Dan Wood

    Dan Wood Well-Known Member

    Joined:
    18th May, 2019
    Posts:
    353
    Location:
    QLD
    It's pretty common, check whirlpool or ozbargin and online reviews there's a bunch of similar scenarios. your clients milage may vary though.

    I'd also be interested in fellow Property Chat users stories!

    Heads up, it might be worth getting the LL filing a Fair Trade complaint too.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    @Michelle Evans - look at the security of payment legislation which applies to construction works in each state as this is an IP.

    Get the protections in place.

    Now that the subby has removed the material, lodge a complaint for theft with the police.
     
    Last edited: 18th Aug, 2019
    Sackie likes this.
  6. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,755
    Location:
    Melbourne
    Isn’t the security of payments act designed to protect construction workers so they get paid for work they have performed - rather than designed to protect their clients?
     
  7. Michael Mitchell

    Michael Mitchell Property Manager Business Member

    Joined:
    17th Sep, 2018
    Posts:
    1,387
    Location:
    Brisbane (Nundah)
    1. Out of contract variation between the builder and the Lessor is a civil matter
    2. It is helpful there is evidence of who has done it (the threats)
    3. Lessor should report trespass, theft, wilful damage to Police, then make an insurance claim to have it remedied
    4. Lessor should sue builder for compensation of monies already paid and job now effectively not done and property probably worse off than before it started (or through the states' building authority etc)
    5. From the sounds of the childish and unprofessional way this builder has conducted themselves, it's probably safe to say they're probably not even licenced or insured, and that is another avenue of complaint to take up with the states' building authority (assuming they have similar to what Qld has with the QBCC and building works over $3,300 or $1,100 for irrigation must be licenced and insured etc)
     
  8. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,755
    Location:
    Melbourne
    From the OP, it’s a landscaper or handyman or perhaps a gardener- not a builder.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    Double edged sword, payment is in dispute.
     
  10. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,755
    Location:
    Melbourne
    But I wonder if there is actually a contract with the person who did the job?

    In Vic you don’t need a major building contract until the job is over $10,000.
     
  11. bunkai

    bunkai Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    859
    Location:
    Sydney
     
  12. Michelle Evans

    Michelle Evans Well-Known Member

    Joined:
    18th Oct, 2017
    Posts:
    257
    Location:
    Bacchus Marsh
    it's landscaping work - so instant turf, garden beds, sleepers, supposed to be retaining walls (I don't think those were put in and the garden bed was just put against the fence itself which will end up spilling into the neighbours yard)... so no building licence or contract - just a standard written quote that was paid for. Owner in question does have insurance but the reality is to fix what's been done (a few sleepers, a couple of plants from bunnings) it's really not worth the claim.
     
  13. bunkai

    bunkai Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    859
    Location:
    Sydney
    Looks like enough to me plus you don’t have to think about it.
     
  14. ToBeFree25

    ToBeFree25 Active Member

    Joined:
    29th Oct, 2018
    Posts:
    33
    Location:
    Melbourne
    Do we have a database of the dodgy builder/tradie ? Anyone made this yet ?
     
  15. Michelle Evans

    Michelle Evans Well-Known Member

    Joined:
    18th Oct, 2017
    Posts:
    257
    Location:
    Bacchus Marsh
    If I didn't think about it for my owners, where would the service be? With excess at $500, the claim would not only (most likely) cost the owner just as much and then when his next insurance premium comes in, price goes up and he's lost his no claim status. For such a small claim, insurance wouldn't be spending time or effort in chasing the trade for the loss either.

    Regardless, I'd like to see this trade not be able to do this to someone else.
     
  16. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,536
    Location:
    Sydney
    Fair Trading handle complaints about tradesmen under consumer law. They would take a dim view of threats made to owners property. Proof ? The issue of a unpaid claim needs to be dealt with as a trader v consumer claim. If tradie is too stupid to do that then consumer can always initiate a dispute. Wont look good for a trader to be making threats concerning a unpaid fee as that element seems not to be in dispute. So they will admit to a unpaid fee and making threats ? Bet they do. Owner can initiate a Fair Trading hearing concerning the tradie concern and their conduct.

    Fair Trading would assess if a quote was given, the scope of works, variation and evidence of all of that. They will likely request parties attend conciliation and may make a final decision if that isnt successful.

    I see tradie too lazy or stupid to succeed. May not attend ? If damage then occurs the Police may have grounds to suspect the cause. Criminal damage. Until Fair Trading act it may be considered a civil issue and not insured.
     
    Michael Mitchell likes this.
  17. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,536
    Location:
    Sydney
    Only if they adopt the process and comply. Cant now choose to reissue a claim
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    Most contractors have it printed on their invoices regardless of whether they know what it means or if it applies.