Builder that hasnt been paid final payment

BrokeBuilder · May 11, 2024 3:35 pm

Hi,
I am a small builder in NSW. We completed a duplex 18 months ago and are still waiting to be paid our final payment.
The client was a friend who we had a lot of trust with. We handed all the OC certificates to him so he could get his OC and since then he has even sold 1 side.

We tried the SOPA method however we were not within duristiction as the contract was signed before March 2020.
We never received any defects list until 1 year later when we tried to put a payment schedule on them. They came up with the most ridiculous defects list through a expert building inspector. Most of the things in the list do not belong to us as they were trades brought by the owner in which our contract states we do not have any responsibility for trades and materials supplied by owner.

Long story short, we are owed $160k and we can fix any items on the defects list thats never been an issue.

We have tried mediation and many meetings however we have had no luck with the owner. We want to go to NCAT next. We are just looking for some advice from anyone who has been through this situation before. Any help would be appreciated.

BuildingandLegal · May 11, 2024 5:23 pm

Get a solicitor!

Ashington Homes · May 13, 2024 5:31 am

BrokeBuilder

Hi,
I am a small builder in NSW. We completed a duplex 18 months ago and are still waiting to be paid our final payment.
The client was a friend who we had a lot of trust with. We handed all the OC certificates to him so he could get his OC and since then he has even sold 1 side.

We tried the SOPA method however we were not within duristiction as the contract was signed before March 2020.
We never received any defects list until 1 year later when we tried to put a payment schedule on them. They came up with the most ridiculous defects list through a expert building inspector. Most of the things in the list do not belong to us as they were trades brought by the owner in which our contract states we do not have any responsibility for trades and materials supplied by owner.

Long story short, we are owed $160k and we can fix any items on the defects list thats never been an issue.

We have tried mediation and many meetings however we have had no luck with the owner. We want to go to NCAT next. We are just looking for some advice from anyone who has been through this situation before. Any help would be appreciated.

Hey Buddy

I am so sorry to hear.

I have been going through something very similar. In our case a client owed us circa $200k for the final payment and moved in without paying us in roughly October last year.

I have to say that heads up, if a client literally moves into their house, even without an occupation certificate or paying their bills, there is basically very little you can do other than suing them civilly. Even SOPA can be touch and go if it applies.

In our case we have managed to recover all but $30,000 by negotiating with the client to do things that we believe were outside of our contract but didn't cost much, just some time and expertise. I was ready to start legal action but my partner asked for one last chance at negotiation. I don't think we will ever see the final $30,000, but that is another story.

if I were you, and I do not know your relationship with these people, sit down and do the math on what a lawyer will cost to sue them, see what you can fix on their list and what that will cost you, see what favours you can pull in from your trades to help ( it sounds like in mediation you may have already tried this and your only hope is to skip NCAT and go straight to court and get him wound up).

I can give you a couple of solicitor numbers if you like.

Basically, the reality is you may just have a client who has run out of money and is using defects as an excuse. That sucks but unfortunately on both sides there are dishonest people these days.

Cheers

Simeon