Agreement violation

ahmad · Mar 20, 2024 11:24 am

My builder has issued invoice for lock-up stage. He has not completed the agreed work even after passing two week of the due date for payment. I simply requested him to kindly confirm, very next day of the issuance of invoice, whether he has completed the agreed work. On 7/7/24 (the due date for payment) sent another email asking him to confirm once work is completed so that we could make the payment. My question is, whether we violated the agreement by withholding his payment or he has violated the agreement? However still no progress at the site or any kind of response from the builder. What we can do more? Any suggestions please in my case please?

Ashington Homes · Mar 21, 2024 4:48 am

ahmad

My builder has issued invoice for lock-up stage. He has not completed the agreed work even after passing two week of the due date for payment. I simply requested him to kindly confirm, very next day of the issuance of invoice, whether he has completed the agreed work. On 7/7/24 (the due date for payment) sent another email asking him to confirm once work is completed so that we could make the payment. My question is, whether we violated the agreement by withholding his payment or he has violated the agreement? However still no progress at the site or any kind of response from the builder. What we can do more? Any suggestions please in my case please?

Ahmad

You really need legal advice on this one.

Construction contracts vary significantly and I have seen clauses in some HIA contracts that require you to pay and have the argument later whereas the fair trading contract that we use allows the client to provide written notice stating why they don't believe the work has been completed.

So read your contract and if needed get some legal advice

cheers

Simeon

BuildingandLegal · Mar 21, 2024 9:44 pm

Once the builder issues you a notice you have a certain number of days (contract specific) to pay, if you don't pay within the approved timeframe you are in breach of the contract. However, if the work is incomplete when the invoice is issued, you may challenge the builder advising what is outstanding and needs to be completed before the stage claim is due. eg All the walls to the left, right and rear are completely clad, but the front wall is only partially clad, so the builder has issued the claim in anticipation of completing the work. This you would go back at the builder advising him that the claim is in valid as the works haven't reached that stage. He would have to reissue once the work was complete!
You can't not pay because you don't like the quality, you would need to issue a notice claiming the builder is in breach of the contract as he hasn't completed the works as per the manufactures specification or in a tradesman like manor.
The first thing you need to do is read exactly what is to be completed for that stage, to allow the builder to make a claim, the contract will include a breakdown of what works make up a stage.

Craig

Mox80 · Mar 22, 2024 8:27 am

ahmad

My builder has issued invoice for lock-up stage. He has not completed the agreed work even after passing two week of the due date for payment. I simply requested him to kindly confirm, very next day of the issuance of invoice, whether he has completed the agreed work. On 7/7/24 (the due date for payment) sent another email asking him to confirm once work is completed so that we could make the payment. My question is, whether we violated the agreement by withholding his payment or he has violated the agreement? However still no progress at the site or any kind of response from the builder. What we can do more? Any suggestions please in my case please?

You need to respond to the Builder within 10 business day advising of your rejection of claim as per SoPA on a payment Schedule,
Do not miss this deadline.