Can I withhold (part) payment?

TMFTP
TMFTP Posts: 195 Forumite
edited 21 April 2009 at 1:04PM in Consumer rights
Firstly - apologies if this has been done before. Search didn't show anything obvious, so....

Point 18 in small print of contract states "in case of dispute, you will not withhold payment." Crafty use of small print, IMO.

In terms of the issue:

We're having 2 flat roofs replaced, both of which only partly cover "habitable" parts of the house. New work has to be insulated to comply with building regulations.

Roofing company, having finished the first one, told us (AFTER we asked) that they have NOT insulated due to the type of roof we have (some sort of wood / concrete scree). This will "probably" be ok with the building inspector.

Final payment is due today / tomorrow (depending on when they finish) and I doubt the building inspector will be out before then (Edit - I've asked them to get written confirmation from the BI to confirm the work they've done is acceptable in the circumstances).

Is it reasonable / legal to withhold the final payment until AFTER the building inspector has approved the work (on the basis that they have not "finished" work)?

Comments

  • It may not be 100% legal and might cause issues but what can they do if you hold off paying until the building inspector comes.
  • tbw
    tbw Posts: 5,137 Forumite
    Can't help with the qustion of witholding payment BUT I wasn't aware that flat roofs had to be inspected if they are replaced (or the need for insulation). I'm a bit concerned as I'm having 2 big ones and 2 small ones (over the dormer windows) replaced in early may and the contractor didn't mention any of this.

    Is it something I need to check into or am I worrying unnecessarily? Any advice would be appreciated.
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  • Yes, it is reasonable. What's the worst they can do? They'll have to send you reminders etc, then if still ongoing, take you to court for the remainder. Hopefully the building will have been inspected and everything sorted long before it coms to that.

    If they start giving you grief, you might want to point out that 18 is probably a breach of the UTCCR 1999 and quite possible the CPUT Regs too, as it is loading the contract against you and trying to deny you recourse. As we all know, he who holds the cash holds the upper hand, and once they have your money, who's to say how they would deal with a complaint? Whereas if you have their money, there's a greater incentive for them to deal with your issues faster and more efficiently.

    I had an issue with Anglian when they redid my porch, and I was supposed to pay the rest of the money on completion of the work. There were a lot of problems with the work done and I refused to pay until it all had been sorted. The area manager was out within hours to my home and the jobs done by the end of the week.

    Bottom line is, if the work is not competely done, then there's no reason for you to pay until it is.
  • phlogeston
    phlogeston Posts: 228 Forumite
    TMFTP wrote: »
    We're having 2 flat roofs replaced, both of which only partly cover "habitable" parts of the house. New work has to be insulated to comply with building regulations.

    Roofing company, having finished the first one, told us (AFTER we asked) that they have NOT insulated due to the type of roof we have

    What work did their original estimate state would be carried out?

    If the work does not comply to estimate then they are in breach of contract.

    If the estimate does not specifically state insulation, then it would be reasonable to expect the work to comply with all current building regulations. If the roofing company have not complied with current building regs then they may be in breach of contract.

    The Supply of Goods and Services Act 1982 requires them to carry out the service with reasonable care and skill. Arguably, that includes complying with any relevant building legislation.

    If you withhold payment, then the worse that can happen is they sue for payment, you can then counter sue for breach of contract, which may include the additional costs of having the work re-done properly.

    NOTE: You really need to get an expert opinion on whether the work complies with the regs or not.
  • TMFTP
    TMFTP Posts: 195 Forumite
    phlogeston wrote: »
    If the work does not comply to estimate then they are in breach of contract.

    If the estimate does not specifically state insulation, then it would be reasonable to expect the work to comply with all current building regulations.

    The estimate does specify insulation - which means it's not "finished" - which is the basis for me wanting to withhold.
  • myrnahaz
    myrnahaz Posts: 1,117 Forumite
    Then you're not merely witholding a payment; your contract says that you must pay when the job is finished - and it won't be until the insulation is either installed or the cost deducted from your bill - he has no right to have an early payment.
    Ring Trading Standards and ask what they advise.
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