Re: Building Contract. Please help.

Howie wrote:

On 23 May 2007 08:22:25 GMT, Adrian <toomany2cvs@xxxxxxxxx>
wrote:


|> The quote we did was supposed to be a budget price for
|> contract-spec everything. We were asked to do a good, cheap job.
|> However, throughout the build, the clients have increased this
|> spec with such things as architraves and picture rails, high
|> quality tiles which they now want laying in a diamond pattern,
|> two or threee colours of paint in each room, specialised window
|> and door furniture, etc. The clients provided a drawing which was
|> inaccurate and produced further costs for us. We even produced
|> temporary waterproof roofing (not previously agreed) whilst
|> removing the roof in order that the house could be lived-in
|> throughout the entire build.

Did you tell them at the time they requested all these spec
increases that they would increase the final cost by £X?

Yes, but it's our word against theirs.

|> The job was a distance away, so every working day had significant
cost |> implications.

Which you presumably built into your quote, since you knew the
distance when you originally quoted?

Yes, but the extra costs have compounded because of the
additional number of trips because of the extra works. We have
probably priced those elements too low as a result.


Thats your fault not your clients
|> More importantly, part of this job was supposed to include a
|> garage extension. But they failed to tell us that they did not
|> have permission to use their neighbour's land and, after a few
|> weeks, it became clear that they were not going to get that
|> permission and we knocked an amount off the full price to do the
|> job without it.

|> Being unable to build the garage was a problem because we had
planned |> the job as a complete price and when men were waiting for
other jobs |> to be finished, they could be available to work on it.

Which you presumably built into your agreed reduction on the total
cost?

Yes. But possibly too much in the client's favour. A mistake by
us.

Again your problem not the clients
|> Anyway, we have now had a solicitor's letter suggesting mediation
|> (even thought it's nearly finished), and threatening to take us
|> to court if we do not complete the rest of the job - including
|> the garage extension.

"No problem, we'll build the garage, if you've sorted the access
issues - but since it will now cost us more to do so, due to the
economies of scale no longer being present, we'll have to charge £Y
instead of the £X reduction"

Areed
Yes, we've said that. But they don't agree and are trying to get
it at the same price because they have a surveyor's report to say
that it can be built in a different way (from the inside out). We
don't want to do it that way. We don't want to put our men on the
roof without scaffolding either. There are real safety issues we
can argue.

The garage can be built from the inside out its not relevent that you
dont want to do it this way , How high is the roof , is it a flat roof
or tiled roof , i am sure the scafolding company could install a saftey
rail to comply with HE regs , you should also insist that your men wear
fall arresters

|> We physically have not got any more money and the clients have had
|> £80,000 of work for approx £70,000, - with a possibility of us
|> being legally forced to do still more.
|>
|> Are we going to have to declare bankruptcy?

You and your business partner would have to declare bankruptcy for
only five grand each?

No. we would have to do so if we are forced to keep to the
home-made contract and spend another, say £20k. But that wasn't
my question.

Taking into account your other thread, mentioning your £25k share
in a property, it seems that bankruptcy really is a bit overkill...

Except that my business partner has nothing really to lose AND it
would probably take me at least 12 months to release that £25k -
even if I was fully co-operative and a sale was secured fairly
quickly. In that time, I suspect that the client would employ
someone else to finish the job and then force us into bankruptcy
anyway by suing us for the money. But ONLY if we can be held
legally liable on a home-made agreement.

So the question again: Can we?

Post a copy of your contract then you will get a realistic answer


--

.

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