House retention for unfinished roads.

silvercar

Our cul-de-sac isn't too big, there are 4 private homes, and 3 housing association.

What do the Housing Association say?

silvercar

sonastin wrote: »

Remember that the retention is actually the builders money not yours, so if between you it completely covers the cost of the work that needs doing then you should be chucking the whole lot in the pot.

I disagree. The builders only get the money if they arrange the work. That is what the retention is for. If the builders don't arrange the work then the retention is no longer retained and is returned.

neas

I kinda see where you are coming from...

Instead of the 5k retainer perhaps you should've got 5k knocked off the price instead. then it would've been simpler. The retainer has been kept to get the road done properly.

Unfortunately its not clear cut with the other individual who bought for 50k less.... they did a better deal but didnt do a retainer. So it is a bit unfair.

richardw

Fingers crossed the housing association may need to sort the road out because of their own internal procedures and obligations. They may appoint a Project Manager and solicitor and the 4 private homeowners then liaise with the HA's PM and Solicitor.

sonastin

silvercar wrote: »

I disagree. The builders only get the money if they arrange the work. That is what the retention is for. If the builders don't arrange the work then the retention is no longer retained and is returned.

Not my experience of commercial construction contracts but I have no experience of the housebuilding aspects of the construction industry so I am willing to stand corrected.

richardw

Contracts some time say that works must be completed before the expiration of a period. If they are not the procedure is often that the contract administrator must issue a notice to the builder saying that the works must be carried out and completed and if they are not the retained monies can be retained by the contract administrator on behalf of their client.

silvercar

sonastin wrote: »

Not my experience of commercial construction contracts but I have no experience of the housebuilding aspects of the construction industry so I am willing to stand corrected.

Only experience is personal. One house we bought we had a retention in place for the seller to do certain work by a certain date. If they did the work they got the retention money 2 weeks after completion (we needed to ensure that the work was of required standard so needed post completion time to check it was functioning). If they didn't do it the retention money was returned to us.

dshart

I think you are right that the cost should be split evenly between the houses involved, but I can see how some of the residents feel otherwise.

For example if everyone purchased their house for £100k this would also have included any costs for the roads, but you withheld £5k so you would have only paid £95k. If the builder comes back and completes the roads you will pay the £5k and the others will pay nothing. This is why I think some of them feel you should put this in the pot first before they have to contribute as theoretically they have already paid for the roads in their price. The difference in purchase price does not come into the equation at all as every buyer pays what they feel the house is worth or get the best deal.

Where your neighbour is wrong is that the builder is not coming back to complete the work so the cost has fallen to the householders. You being wise retained money from the builder to ensure the work was completed and as it has not, you should get your £5k back. The others did not take steps to ensure the work was completed and thus it is up to them to chase the builder for any costs incurred completing the work themselves. Any further costs now should be equally shared by the houses and you already have £5k towards your share.

To put it another way if the problem with the builder was that no windows had been fitted to the house you would not expect your retention to be used for fitting windows to all the houses but only your own.

I would advise having a meeting with your neighbours and trying to explain this and try to come up with an amicable solution rather than fall out with them.

richardw

dshart wrote: »

The others did not take steps to ensure the work was completed and thus it is up to them to chase the builder for any costs incurred completing the work themselves. Any further costs now should be equally shared by the houses and you already have £5k towards your share.

...............Exactly.

silvercar

The housing association is key.

If they have a requirement to have all their properties on adopted roads, then the remaining neighbours can let them cover the whole cost.

If the HA aren't bothered about the road, they could refuse to pay a penny and leave the remaining houses shoulder the burden.

Or the HA could get contractors in on the understanding the other propertied pay four-sevenths of the cost.