Help. Builder has run out of money and job is only half done

Blueseriph · 13 January 2018 at 5:51PM

We agreed a quote from a contractor and the works were going well at first, but starting to come to a standstill around the holidays. The builder met with us and told us that he had spent all of the money and had none left to continue working. He gave us an option of him either taking on other work to cover the costs of our work (not an option because we are losing money and need to move into the house ASAP) or for us to pay him the last installment now (which it says in writing needs to be paid upon completion). We are afraid to give him all of the money because it leaves us with no protection and we don't trust that he won't just mismanage that money too.

Things are now moving slowly because he can't pay subcontractors to come in to do the remaining work, even though he should've managed things better from the beginning and it's not fair that we are in this situation. We're not sure what to do now. Any advice is appreciated.

xyz123 · 13 January 2018 at 6:58PM

Can't you come to a compromise? For example if he needs money for materials and can't due to cash flow problems then maybe you can buy materials for him and deduct appropriately from final payment.

Blueseriph · 13 January 2018 at 7:05PM

We actually have said we would do this and gave him materials money last week and asked for 3 small tasks to be done which he didn't complete. We don't trust him now at all, he has lied to us about various things throughout

Warwick_Hunt · 13 January 2018 at 7:12PM

Well you’re between a rock and a hard place getting someone else in will cost more money.

Can you not pay for the materials when they arrive on site? He’s obviously got no credit with the builders merchants.

docmatt · 14 January 2018 at 8:51PM

Did you get 65 quotes and he was the cheapest?

System · 14 January 2018 at 9:25PM

Don't pay him any more money at the moment.
He's either incredibly bad at pricing jobs or is bad at running his business (or having serious cash flow issues) if he's using subcontractors, ask if you can employ them directly given the situation.

sevenhills · 14 January 2018 at 10:39PM

Blueseriph wrote: »

Things are now moving slowly because he can't pay subcontractors to come in to do the remaining work.

You could pay the subcontractors directly, so long as they are not really your builders mates.

teneighty · 15 January 2018 at 2:36PM

Blueseriph wrote: »

We agreed a quote from a contractor and the works were going well at first, but starting to come to a standstill around the holidays. The builder met with us and told us that he had spent all of the money and had none left to continue working. He gave us an option of him either taking on other work to cover the costs of our work (not an option because we are losing money and need to move into the house ASAP) or for us to pay him the last installment now (which it says in writing needs to be paid upon completion). We are afraid to give him all of the money because it leaves us with no protection and we don't trust that he won't just mismanage that money too.

Things are now moving slowly because he can't pay subcontractors to come in to do the remaining work, even though he should've managed things better from the beginning and it's not fair that we are in this situation. We're not sure what to do now. Any advice is appreciated.

I just cannot get my head around this, it must be a very strange working relationship.

The way it should work is the contractor does some work and at the end of the agreed period, week, fortnight,month whatever, the customer pays for the work completed so far in arrears. That should keep the cash flow ticking over nicely.

If the builder has "run out of money" and has suggested leaving site to do other jobs to pay for the work that is crazy, the builder himself should not be funding the work. If he has taken payments in advance and he has spent it all on other things rather than the job that should be ringing very loud alarm bells. Either he is totally incompetent or he is a crook, either way would you really want this person to carry on with the job?

unforeseen · 15 January 2018 at 3:14PM

Builder has run out of money and job is only half done

Carillon by any chance? :rotfl:

Furts · 15 January 2018 at 3:18PM

unforeseen wrote: »

Carillon by any chance? :rotfl:

Perhaps not in good taste considering those about to loose their jobs. Anyway just my personal take on this issue. Perhaps your comment is witty - care to broadcast it in any pubs in Wolverhampton?

teneighty · 15 January 2018 at 3:59PM

Furts wrote: »

Perhaps not in good taste considering those about to loose their jobs. Anyway just my personal take on this issue. Perhaps your comment is witty - care to broadcast it in any pubs in Wolverhampton?

Mowlems used to be a good contractor until Carillion got their money grabbing hands on them. I've worked with both and Carillion were terrible, all they were interested in was winning new public sector contracts that they would not staff properly and then they would try to screw the client for every last penny.

The existing contracts will be bought out by other firms and probably take on Carillion's workforce, they have already sold off a lot of contracts. Hopefully we will see Mowlems re-emerge from the ashes as a traditional major building contractor and avoid these Americanised outsourcing contracts and facilities management.

I suspect BBC news reports that schools, hospitals and railways are at risk is the usual BBC politically motivated hyperbole.

Help. Builder has run out of money and job is only half done

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