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  • FIRST POST
    • Blueseriph
    • By Blueseriph 13th Jan 18, 4:51 PM
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    Blueseriph
    Help. Builder has run out of money and job is only half done
    • #1
    • 13th Jan 18, 4:51 PM
    Help. Builder has run out of money and job is only half done 13th Jan 18 at 4:51 PM
    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.
Page 1
    • xyz123
    • By xyz123 13th Jan 18, 5:58 PM
    • 1,511 Posts
    • 369 Thanks
    xyz123
    • #2
    • 13th Jan 18, 5:58 PM
    • #2
    • 13th Jan 18, 5:58 PM
    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
    • By Blueseriph 13th Jan 18, 6:05 PM
    • 2 Posts
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    Blueseriph
    • #3
    • 13th Jan 18, 6:05 PM
    • #3
    • 13th Jan 18, 6:05 PM
    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
    • By Warwick Hunt 13th Jan 18, 6:12 PM
    • 858 Posts
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    Warwick Hunt
    • #4
    • 13th Jan 18, 6:12 PM
    • #4
    • 13th Jan 18, 6:12 PM
    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
    • By docmatt 14th Jan 18, 7:51 PM
    • 823 Posts
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    docmatt
    • #5
    • 14th Jan 18, 7:51 PM
    • #5
    • 14th Jan 18, 7:51 PM
    Did you get 65 quotes and he was the cheapest?
    • the_r_sole
    • By the_r_sole 14th Jan 18, 8:25 PM
    • 2,345 Posts
    • 1,182 Thanks
    the_r_sole
    • #6
    • 14th Jan 18, 8:25 PM
    • #6
    • 14th Jan 18, 8:25 PM
    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
    • By sevenhills 14th Jan 18, 9:39 PM
    • 836 Posts
    • 300 Thanks
    sevenhills
    • #7
    • 14th Jan 18, 9:39 PM
    • #7
    • 14th Jan 18, 9:39 PM
    Things are now moving slowly because he can't pay subcontractors to come in to do the remaining work.
    Originally posted by Blueseriph
    You could pay the subcontractors directly, so long as they are not really your builders mates.

    • teneighty
    • By teneighty 15th Jan 18, 1:36 PM
    • 1,077 Posts
    • 769 Thanks
    teneighty
    • #8
    • 15th Jan 18, 1:36 PM
    • #8
    • 15th Jan 18, 1:36 PM
    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.
    Originally posted by Blueseriph
    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
    • By unforeseen 15th Jan 18, 2:14 PM
    • 2,226 Posts
    • 2,828 Thanks
    unforeseen
    • #9
    • 15th Jan 18, 2:14 PM
    • #9
    • 15th Jan 18, 2:14 PM
    Builder has run out of money and job is only half done

    Carillon by any chance?
    • Furts
    • By Furts 15th Jan 18, 2:18 PM
    • 3,741 Posts
    • 2,364 Thanks
    Furts
    Carillon by any chance?
    Originally posted by unforeseen

    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
    • By teneighty 15th Jan 18, 2:59 PM
    • 1,077 Posts
    • 769 Thanks
    teneighty
    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?
    Originally posted by Furts
    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.
    • Furts
    • By Furts 15th Jan 18, 3:38 PM
    • 3,741 Posts
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    Furts
    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.
    Originally posted by teneighty

    Whether Mowlem was good is debatable. By the mid 1980s corporate greed, (rapid expansion and managers who did not control), corporate stupidity (dodgy house building, rapid expansion, strange land banks) and outright lies (Carlton Gate) took over the company and brought about its' downfall.


    An upside was the Mowlem homes were in a different league to the dross being built by Tarmac - later rebranded as Carillion. HSS and SGB were respected names, and London Airport just under developed, done on a budget, starved of money and ahead of its time.


    I too worked at Mowlem!
    • unforeseen
    • By unforeseen 15th Jan 18, 4:59 PM
    • 2,226 Posts
    • 2,828 Thanks
    unforeseen
    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?
    Originally posted by Furts
    I work in a building shared with Carillion and our company was glad to break the ties we had with them on contracts a few years ago.
    • southcoastrgi
    • By southcoastrgi 15th Jan 18, 11:15 PM
    • 5,267 Posts
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    southcoastrgi
    Most builders take a deposit & stage payments every 2 weeks hence the cash flow keeps ticking over
    I'm only here while I wait for Corrie to start.

    You get no BS from me & if I think you are wrong I WILL tell you.
    • cddc
    • By cddc 17th Jan 18, 9:11 AM
    • 1,133 Posts
    • 1,310 Thanks
    cddc
    Pay him weekly as he goes for the rest of the job?
    • Cisco001
    • By Cisco001 17th Jan 18, 10:29 AM
    • 2,749 Posts
    • 1,170 Thanks
    Cisco001
    1. Estimate the value of the work he already done and paid it.

    2. Ask him what is the material require to finish the rest of the work. You purchase it yourself, not via him. And thus, if he go bust, the material are still yours.

    3. Ask him to itemized the labour and equipment cost for every stages for the rest of the job. Paid him accordingly when he finish each stage.
    • littlerock
    • By littlerock 19th Jan 18, 6:38 PM
    • 1,255 Posts
    • 184 Thanks
    littlerock
    It sounds to me as if he has taken your money to work off a pre- existing job instead of yours. I would not give him any more money. You could negotiate to pay for his materials direct and then let him charge you for his time, but I doubt he will do much more work particularly if he needs to pay sub contractors. This happened to my sister. She was reminiscing the other day how she got caught out by a kitchen fitter who did just that. She said in retrospect she should have made sure she monitored progress better in return for handing over money. You can do as Cisc001 suggests, but I doubt you will get much work out of him. Sadly.
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