In this forum we often rightly criticise builders....

Too bad to hear that Simeon. Can't you just request money from their bank?

Well, in the end of the day, you can always give them a call and check? These moneys should have been already allocated as part of the original arrangement, so if you provide independent evidence that works are completed, they should be able to release?

Like so many builders, me included you fell into a trap, looking at smiling friendly face not realising the devil in the eyes.


In my book you will only be respected if you are thoroughly professional, in control and deliver on your promise on time and expected quality.

If you are overly friendly and trusting it can creep up on you and before long you are giving concessions, losing control, doing things for free, being taken advantage of and disrespected for it, and then taken to the cleaners. For what? Nothing.

Never get too close to the client, its just business. It s like sport. Law and legislation, regulations and standards are ground rules, your building contract are game rules, you both agreed, so play the ball, not the player.

You can be smiling and courteous but always cary variation notice in your back pocket and whip it out before your client has a chance to get to the second sentence, in most cases it is refreshingly cold shower for them. if not then ask them to pay for the variation in full upfront, another cold shower. (remember you can refuse to carry out a variation if it is not on your terms).

Some will say I am harsh but not so, In commercial building if you are not on the ball you will be eaten alive, so you have to toughen up to survive. Keep your good heart in check.

Hey Simeon. That's a real blow. Some people will take advantage of any situation.
Just out of interest, do you give owners keys during construction?
If not, do you give them the keys before final payment.
I'm just amazed that they even have the opportunity to move in before the final payment is made.
A car yard would never hand over the keys to a car without full cleared payment. I understand that you build a relationship with clients over the course of a build and they have certainly taken advantage of you but I would have thought that keys came after final payment.
Do build contracts give you a right of lien?

Hi Chippy

Thanks for your questions.

There is a samsung smart lock on the front door which had a generic code 123456.

They knew the code as they had some of their own contractors doing sound and audio installation and also right at the end they begged for permission to put furniture that they had bought into the house.

But they had assured us, on numerous occasions and also in front of the certifier that under no circumstances would they move in until OC was issued. They were living rent free with the wife's parents a few doors up.

I know allowing furniture in sounds dumb, but it started off innocently in dribs and drabs and then became out of control.

What I mean is that it started with "I bought this bar fridge and they wont hold it anymore, can we please just store it onsite" to then a week or so later " King furniture wont hold this couch anymore, can we just have it delivered?" to the day of cleaning a whole truck load of beds rocks up followed by 50 amazon prime deliveries.

We genuinely believed them when they gave their undertaking that they would not move in until OC was issued.

We don't have an obligation under the contract to get them OC, however we arranged the inspections ( a few rectifications were needed so we undertook those) and we supplied all certificates to the certifier for them.

The sticking point was a covenant on title for the stormwater which needed to be signed by council and that went into a black hole.

Until a couple of weeks ago I still didn't think they had moved in. Our work was finished and I was only occasionally dropping by to water the lawns and gardens.

Then one night it occurred to me that this normally chirpy couple who would post regularly on the group chats had gone silent. So at 9.30pm I drove around there and sure as sugar it looked like they had moved in. A couple of days later to be sure I got my teenagers to drop by on their way home from school and they filmed the clients X5 in the garage.

We haven't gone legal until this point as my partner was sure he could negotiate with them. He has been promised payment several times, and now they are saying that they won't pay until we get OC and they are using their bank as the excuse.

The contract clearly gives a definition for PC and a handover process where upon payment we hand over keys and warranties etc.

They are quite well off, and have very wealthy family members so in my mind whether or not their bank wont issue payment until OC is a them problem not an us problem. They can quite easily borrow the money.

All of the family live locally in $5-7m homes, the father was regularly rocking up in new mercedes ( he owns several including the electric one), so I am sure they can find $224,000 somewhere.

Quick update

I have engaged the lawyer who is going to review all the documents and come up with a strategy. We have a meeting Monday.

I have also notified the certifier so we will see what happens. I am hoping they can notify council and then hopefully council can give them notice to vacate.

So watch this space. I will report back when I know more

Simeon

There will be contractual protocol to follow where the owner takes posession before handover.

I am sure you are correct, but it can't be that common right?

I also contacted council today as well. See if they can do anything

Thanks for your post.

I had a feeling this might be the case so I really appreciate your advice.

I will start working on a spreadsheet with all the "free work" we did.

Interestingly, just had a call from council. They aren't really interested in getting involved. The best help they could give was that they won't pick up their rubbish. That would be annoying but I was hoping for more.

How it going with this Simeon