Builder ceased trading

Premier_2

The issue here is that the OP is uncertain of who they have actually contracted to do the work; a limited company or a self employed builder.

I suspect the builder could have been operating in both capacities depending on the job in question.

Even if not, it doesn't really matter. The fact that the confusion exists (so presumably the company name is not specified in the contract) and that the letterhead also make no mention of limited liability (I presume it doesn't state the company name, registered office and/or registered number anywhere else on it either), then the builder could be held personally liable.

But as I mentioned, if he's got no money the OP would be throwing good money after bad in pursuing such claim.

Burnt_2

Thanks for all your advice. To clarify a few points:

The name of the builders company was on all documentation (initial letter/'contract' + invoices) accurately but without the name 'limited' or 'ltd'. But it actually is a limited company according to companies house and the FMB. Funnily the letterhead also states 'Partners: abc & xyz', ie the names of the two main people.

Unfortunately we paid by cheque and they were cleared way before he 'ceased trading'. The stage payments gave us a false sense of security - the attraction was the 20% at the end that we didn't have to pay until we were satisfied all snagging etc was rectified. But it all went wrong in the early stages, just after we paid for completion of 'groundworks' (actually not complete and now in need of remedial work) but he already had a significant amount of front loading in the form of a 'deposit' and 'start of work' :mad: We think he was undercutting other local builders just to get work in. How he went bust is a mystery - I spoke to a nearby satisfied client before we took him on.

His ex workers are trying to pick up the job but since the work done is not fit for purpose we're reluctant to take them on even though they promise they can complete the job at no extra cost to us than the original quotation.
We're looking at many avenues but one things for sure – we're going to be in control now and each part of the job will be subcontracted as we see fit. It just so happens that I've lost my job so I now have a new focus – to be one step ahead and 'in the know' for each new stage of the job.

Premier_2

Burnt wrote: »

...The name of the builders company was on all documentation (initial letter/'contract' + invoices) accurately but without the name 'limited' or 'ltd'. But it actually is a limited company according to companies house and the FMB. Funnily the letterhead also states 'Partners: abc & xyz', ie the names of the two main people...

I think you maybe confusing yourself more than needs be.

There may well be a limited company registered that has the same trading name (with the addition of limited attached) that may or may not be controlled by the same people, but that is a different legal entity. You are dealing with the individuals, and they are personally liable for any debts of that specific, non-limited business.

The fact that it also states partners reinforces that fact, & I guess you could hold them jointly & severally liable. i.e. you could pursue either or both for any debt (you'll need to check up on that bit). Limited companies usually have directors rather than partners, but the directors do not need to be specified on any usual paperwork but the name of the company, the country it is registered in, the registered number and the registered address does. The partners are mentioned in this case as they are the legal owners of the business, and it is a requirement to specify the owner.

There is such a thing as a limited partnership, but that won't affect you either because:
(a) it still needs to have limited (or ltd) in the name
(b) if the partners are taking an active management role in the company, they are personally liable even if it is a limited partnership.

devils_advocate

as Premier says.

And the limited company is a red herring, and don't let the builder tell you otherwise. firstly, and before taking any course of action, make sure that you've got the residential address of the partner in the building business. I'd then recommend that you phone the builder, say that all the documentation is in his personal name rather than the company name, and unless you get some money back from him pretty damn quick you will be issuing a letter before action, prior to commencing proceedings in the courts to recover the money due. Mention also that his partner has joint and several liability so you'll be suing him too. He'll probably trying to say that he'll be around next week to finish it, or some other delaying tactic, but unless he comes up with the money very quickly, you need to get the documentation in place so that you can take him to court. And don't listen to any sob stories, as these could merely be a delaying tactic whilst he shifts his cash elsewhere so that you can't find it.