Browse Forums General Discussion 1 Sep 25, 2012 1:10 am Hi, We have a complicated situation. My husband worked for a builder who was a friend, who agreed to do renovations on our house. No contract or any paperwork was ever completed regarding the agreement or arrangements. He made a verbal commitment to me that it would not cost more than our $100K budget. The renovation ended up exceeding the discussed budget by approx $200K, which since my husband has left his employment, the builder is requesting payment immediately. It will take 3-6 months before we can secure finance to pay this debt. In the interim the builder wants to charge us interest on this amount. Can he do this without a contract stating the interest requirement? Any advice would be great. Thank you A complicated situation - no building contract, interest 3Sep 25, 2012 11:02 pm No paperwork/signature/contract means he is legally entitled to Zero. Wow, why did the budget blow out by so much? I wouldn't not pay the costs, but tell him in no uncertain terms that you will pay him once you get the finance but will not pay him interest. Re: A complicated situation - no building contract, interest 4Sep 26, 2012 6:41 am I think JB1 is right and if the builder wants to get paid he has to prove his claim in VCAT but there are number of other issues: 1 Is there a building permit? 2 Who is the builder on the permit? 3 Who did the plans and what's on them? 3 Has builder given you Home Owners Warranty? 4 You don't seem to be questioning 200K extra cost, Why? 5 What about defects, did you get independent pre final inspection? You will need someone who not only knows building contracts but also do defect reports and be your expert witness if this goes further to VCAT or similar. If you are in Vic I can help you but you have to book. PM if interested. or You can "Ask Building Expert" on line www.buildingexpert.net.au or get help elsewhere. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog You might be able to apply to divert the sewer at your expense. In NSW you would contact a Water services co-ordinator and they would give you advice as to whether or not… 1 16145 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16548 I've decided, after a period of confusion (my building broker told me it's probably not worth it to use a lawyer, but others have said it is a must) that I definitely will… 7 27951 |