Conservatory company has gone into liquidation - help!

Jess

The company which has been building us a conservatory has gone into liquidation. the work is almost finished but we were supposed to be getting a 10 year insurance backed guarantee which we have been told would have been made available once we had made the final payment and the underfloor heating has not been finished.

1. Can I pay the underfloor heating company direct (they have received nothing from the conservatory company) so that they finish the heating and we get our guarantee for that part of the work.

2. If the liquidators come to us for the outstanding money can we (a) take off the cost of the heating if we have paid it ourselves and (b) get the insurance backed guarantee via the liquidators?

i know nothing about 'liquidation' so any advice would be gratefully received.

antrobus

Liquidation basically means that the company is now being run by a bunch of accountants who will be closing the company down and trying to raise as much cash as possible.

The first thing to do would be to contact the liquidators and ask them what they intend doing about your "almost finished" conservatory. It might be the case that it's worth their while to pay someone to finish it in order to get hold of the outstanding money on the contract. Or not.

But I wouldn't pay anybody anything until you know what the liquidators intend doing about your contract.

ThumbRemote

antrobus wrote: »

But I wouldn't pay anybody anything until you know what the liquidators intend doing about your contract.

In fact, I wouldn't pay anybody anything until the work is completed to your satisfaction.

Jess

ThumbRemote wrote: »

In fact, I wouldn't pay anybody anything until the work is completed to your satisfaction.

I had been asked by the conservatory company for the final payment but refused to hand the cash over until everything was finished - in fact I was going to try to hang on to a 5% retention until the conservatory was 6 months old in case any problems had shown themselves.

I am most concerned about the insurance-backed guarantee which I am afraid I may never see. Presumably I would be within my rights to withhold some cash from the final payment as that was part of the contract?

I have tried to get in touch with the liquidators with no joy but I will persevere.

Thanks for advice.

Hintza

I would assume (if I were you) that you will get nothing in the way of a warranty, don't kid yourself otherwise. On that basis I would be holding at least a retention for a year and I would be nit picking every small defect.

In fact I would be trying my hardest not to pay another penny. I do hope the remaining works are worth less than what has to be paid at this point.

Flyboy152

Hintza wrote: »

I would assume (if I were you) that you will get nothing in the way of a warranty, don't kid yourself otherwise. On that basis I would be holding at least a retention for a year and I would be nit picking every small defect.

In fact I would be trying my hardest not to pay another penny. I do hope the remaining works are worth less than what has to be paid at this point.

If that is the case, the OP should at least pay the balance, less what the cost would be to finish the work. The company will have creditors; suppliers and other customers. The more money that the administrators can recover, the more money available to pay those they owe money to.

kazwookie

Also don't pay anything more in 'cash', make sure it is on a credit card as this may give you some protection, or at least via your internet banking so there is a record.

In cases like this 'cash' can go 'missing' leaving you to pay twice, as there is no record you have paid at all.

Any thing from the liquidation company get in writting and on headed paper.

pelirocco

Flyboy152 wrote: »

If that is the case, the OP should at least pay the balance, less what the cost would be to finish the work. The company will have creditors; suppliers and other customers. The more money that the administrators can recover, the more money available to pay those they owe money to.

or more probably the more money available to pay the administrators

I would have assumed the OP has paid everything that is due to date , the rest will be due when the job is completed . The administrators may have plans in place to get outstanding jobs finished ........depends if the company is in administration or liquidation

Flyboy152

pelirocco wrote: »

or more probably the more money available to pay the administrators

I would have assumed the OP has paid everything that is due to date , the rest will be due when the job is completed . The administrators may have plans in place to get outstanding jobs finished ........depends if the company is in administration or liquidation

The administrators objectives are to get as much money for the firm's creditors. Whatever they can collect, after the fees, goes to those the company owe money to.

Evilm

Take a deep breath and give the administrators a chance to assess. In a couple of weeks ask them for an idea of what their expectations are regarding the unfinished work and the insurance issues.

It could range from "you are completely on your own" with both to "yes, we will be finishing the jobs and here is the insurance".

It will largely depend on how bad a state the company is in and whether a buyer can be found or whether the Directors phoenix it into another company.

Do not give or promise the underfloor heating people anything until you have information and agreement from the administrators.

Also if the original Directors (or employees) come round trying to get cash/cheques off you for the outstanding bill do not pay them. You should be making payments to the administrators only and sending it directly to them unless you have confirmation in writing from them to do otherwise. It wouldn't be the first time that I've seen the Directors cajole the rest of the payments out of a customer and then it disappears into their new company or back pocket. (that doesn't mean I haven't seen Directors act honourably either - just that you need to be careful just in case.)

Hintza

Flyboy152 wrote: »

If that is the case, the OP should at least pay the balance, less what the cost would be to finish the work. The company will have creditors; suppliers and other customers. The more money that the administrators can recover, the more money available to pay those they owe money to.

Why would you pay the balance at this stage?

There should be a retention for problems coming to light in the next year and there is also the lack of warranty which needs to be valued also there will be works that need remedied.

The OP needs to be 100% satisfied that the works are complete and the warranty in place before anymore money less the retention.

Pay now and that will be the last you see of them and the company will have been wound up so no chance of redress. The OP has to look after themselves and not worry about anyone else.