Browse Forums General Discussion 1 Jun 21, 2014 4:51 pm Hi guys, My builder (builder A) walks off the job that he hasn't even started. We have the signed contract, council approval, bank's loan approval, etc. We paid him for the initial deposit based on the signed contract. Was advised a couple of times by builder A that work will start in the next two weeks (with nil outcome). However, now he's telling us he couldn't continue with the job and he has found another builder (builder B) for us to continue the job based on the signed contract. Builder A will refund the deposit back to us minus the council approval. Builder B now wants to see the plan and wants us to sign another contract with him and lodge it with the council. This means another delay again. He vaguely said that the contract price would be same. Can I ask what rights do I have? Thanks. Re: My local builder walks off the job 2Jun 21, 2014 7:28 pm THe best thing you can do is read the contract you have with builder A to check the termination is being correctly dealt with. You may be able to claim costs due to the failure of builder A but actually getting your hands on any compensation may well be difficult. You will certainly need to sign another contract with builder B even if the prices are based on the initial contract. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: My local builder walks off the job 5Jun 21, 2014 9:32 pm B STAR why cant builder A contract the job to builder B. Only works contractually if Builder B buys Builder A's business. I suspect Builder A's Business isn't worth buying! The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: My local builder walks off the job 6Jun 22, 2014 12:25 am B STAR why cant builder A contract the job to builder B. no reason why builder A couldn't subcontract it out and sign off on it but they will carry 100% of the liability without 100% of the profits. At least builder A have been upfront rather than string you along. Re: My local builder walks off the job 7Jun 22, 2014 7:37 am bashworth THe best thing you can do is read the contract you have with builder A to check the termination is being correctly dealt with. You may be able to claim costs due to the failure of builder A but actually getting your hands on any compensation may well be difficult. You will certainly need to sign another contract with builder B even if the prices are based on the initial contract. Agree. While not an expert I'd stay clear of both. It might mean a delay and a slight loss - but I'd look about for a builder you like and choose him/her. You have a builder who has taken on the job then reneged, after telling you "stories". He then recommends you go to a "mate" to build the house. I'd heed the warning. Re: My local builder walks off the job 8Jun 22, 2014 8:29 am bashworth THe best thing you can do is read the contract you have with builder A to check the termination is being correctly dealt with. You may be able to claim costs due to the failure of builder A but actually getting your hands on any compensation may well be difficult. You will certainly need to sign another contract with builder B even if the prices are based on the initial contract. bashworth THe best thing you can do is read the contract you have with builder A to check the termination is being correctly dealt with. You may be able to claim costs due to the failure of builder A but actually getting your hands on any compensation may well be difficult. You will certainly need to sign another contract with builder B even if the prices are based on the initial contract. Thanks Basworth, Builder B took my original contract with him yesterday as he's trying to make his own contract. He also asked us to write a letter addressed to the council and the building society that builder B will be my builder now, as builder A can no longer do the job. Is this a right way to do? Now I'm hoping I'll get my builder A's contract back so i can read the terms and conditions of termination. Re: My local builder walks off the job 9Jun 22, 2014 8:31 am I don't quiet agree Saint Mike, this poor bugga (A) will most likely lose his house because his company is in trouble. Yeah he's strung them along a bit probably to try and save what he's got. I've worked for a builder who went broke and the heart ache the owners with slabs down or paint half finished went through I'd wish on no body. Cullzn11 you don't have to accept the proposal of the other builder, but if he's willing to take the contract over for the same price then that is a positive. If you have any reservations about the new builder ask for details of his recent jobs, speak with the clients and ask one question. Were there any extended delays? If so that generally means a cash flow issue and suppliers ave them on stop, if not and there happy with there house then go for it. Re: My local builder walks off the job 10Jun 22, 2014 8:40 am mgilla I don't quiet agree Saint Mike, this poor bugga (A) will most likely lose his house because his company is in trouble. Yeah he's strung them along a bit probably to try and save what he's got. I've worked for a builder who went broke and the heart ache the owners with slabs down or paint half finished went through I'd wish on no body. Cullzn11 you don't have to accept the proposal of the other builder, but if he's willing to take the contract over for the same price then that is a positive. If you have any reservations about the new builder ask for details of his recent jobs, speak with the clients and ask one question. Were there any extended delays? If so that generally means a cash flow issue and suppliers ave them on stop, if not and there happy with there house then go for it. Hi Mgilla, What do you mean we dont have to accept the proposal (contract) of builder B? Yeah builder B is willing to take over the contract but will still need to make a new one so using his own ABN, etc and I assume the building insurance must change from the builder A to builder B too. Thanks. Re: My local builder walks off the job 11Jun 22, 2014 9:37 am mgilla I don't quiet agree Saint Mike, this poor bugga (A) will most likely lose his house because his company is in trouble. Yeah he's strung them along a bit probably to try and save what he's got. If you have any reservations about the new builder ask for details of his recent jobs, speak with the clients and ask one question. Were there any extended delays? If so that generally means a cash flow issue and suppliers ave them on stop, if not and there happy with there house then go for it. Sorry MG- I didn't know this bit. It seemed to say he had just walked off the job. I'd still be wary though. I'd like to look about - maybe take "B" - but look at others too. But definitely speak to people and see finished products. Re: My local builder walks off the job 12Jun 22, 2014 12:15 pm cullzn11 Now I'm hoping I'll get my builder A's contract back so i can read the terms and conditions of termination. you never sign a contract unless there is 2 copies given, so one copy you take with you. mgilla I don't quiet agree Saint Mike, this poor bugga (A) will most likely lose his house because his company is in trouble. Yeah he's strung them along a bit probably to try and save what he's got. Unfortunately stringing people along is unethical, bad business practice, and illegal. ITs unfortunate that today you cant trust too many people, and the civil courts are full of people trying to get their deposits back from collapsed businesses that decided to trade up until the last day they closed their doors. "Walking off the job" is a negative connotation that may not quite fit since he hasnt actually started the job. Builder A may actually be doing the right thing, ie pulling the plug due to his financial position being unsound. He may have a valid reason - we are just speculating. Re: My local builder walks off the job 13Jun 22, 2014 2:11 pm cullzn11 Hi Mgilla, What do you mean we dont have to accept the proposal (contract) of builder B? Yeah builder B is willing to take over the contract but will still need to make a new one so using his own ABN, etc and I assume the building insurance must change from the builder A to builder B too. Thanks. Yes if you go with B a new contract will need to be signed with them. Something else to keep in mind, is the plan your building one you designed or is it from A's standard range? You or any other builder cant use it if its there plan and they haven't given approval to do so. Re: My local builder walks off the job 14Jun 22, 2014 6:05 pm mgilla cullzn11 Yes if you go with B a new contract will need to be signed with them. Something else to keep in mind, is the plan your building one you designed or is it from A's standard range? You or any other builder cant use it if its there plan and they haven't given approval to do so. Thanks Mgilla, We've got our plan and not builder A's plan. I feel a little bit better now after all the information above. Thanks again guys! I'll keep you posted! Re: My local builder walks off the job 15Jun 22, 2014 6:28 pm I can see nothing in the OP's posts stating that Builder A is under financial difficulties The OP has in fact posted... cullzn11 Builder A will refund the deposit back to us minus the council approval. There could be any number of reasons why Builder A was not able to do the build as contracted, for example, a sudden family illness or other personal crisis. He has clearly been upfront and a decision such as this would unlikely to have been taken lightly. As qebtel posted... qebtel He may have a valid reason - we are just speculating. 3in1 Supadiverta. Rainwater Harvesting Best Practice using syphonic drainage. Cleaner Neater Smarter Cheaper Supa Gutter Pumper. A low cost syphonic eaves gutter overflow solution. Re: My local builder walks off the job 16Jun 24, 2014 1:27 pm Just make sure you research builder B before you commit to anything. Check his past jobs/references, licence and insurances are current and the HOW insurance needs to be revised and contract obviously need to be between him and yourselves. I would think it is more than ok for you to find your own builder and not use builder B if you have any concerns or the contract is for more etc. Maybe get a letter from builder A stating that he is terminating the contract and giving you are refund just to cover yourself. I agree better he pulled the pin now that later. Sometimes things happen sudden and unexpected in life that we have no control over and some. If you do go with B, please take the contract to a solicitor and get it checked before you sign it. Make sure it is for the exact same things you were getting before. Re: My local builder walks off the job 17Jun 24, 2014 1:52 pm Wow, people love to hate. There is nothing to suggest this builder is dodge. He is refunding all money and has tried to help by referring OP onto someone else instead of leaving them in the lurch. It is the OP's option whether they use this builder or find another. As others have said, the cause could be anything; illness, death in the family, personal circumstances...anything. Even if it is financial this builder is not trading on while insolvent if they have'nt started the job Re: My local builder walks off the job 18Jun 24, 2014 2:14 pm I agree. It may be also that he does a great job and is so busy he can't deliver the OP's job in the expected time frame. To advise them to look elsewhere and to recommend someone else before he has even started is doing the right thing. Stewie Re: My local builder walks off the job 19Jun 24, 2014 3:43 pm Tjilp was that in response to my post? the hate bit? I didn't say he was dodge I agreed that stuff happens and he has done the right thing and just to check out the new builder like you normally should/would? Re: My local builder walks off the job 20Jun 24, 2014 7:13 pm I was wrong of me to assume it was purely financial. There could be any number of reasons why A has handed the job over. I still maintain regardless of the circumstance I think A has been extremely ethical in the handling of the situation. Thanks for much mate. I see that you do cabinets before flooring. For timber flooring, for most parts it's fine because it's got base plates, and for door jabs you can… 7 11550 Regardless of wall hung toilet or floor pan toilet your feet will be right on drain, seems to me the waste should not be in that location given the design. Also are you… 6 7026 Last year I had a gas leak at my house. 3 days later, I have about 1 sqm of my exposed aggregate paving broken up. I am not sure how to go about getting it repaired… 0 10403 |