Conservatory company has gone into liquidation - help!

DVardysShadow

If the works are not completed and the liquidators don't get the job finished off and the money still to be paid is not enough to get it finished yourself, you have a claim against the liquidators.

OK, you will almost certainly get far less than 100% of what is owed, but don't assume that you do not have a claim.

arcon5

Jess wrote: »

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.

:eek:
You can't just on to money a half a year after work has been completed 'just in case' something happens!!!!

ThumbRemote

arcon5 wrote: »

:eek:
You can't just on to money a half a year after work has been completed 'just in case' something happens!!!!

Yes, that would be terrible, it might mean companies had to do a decent job.

arcon5

ThumbRemote wrote: »

Yes, that would be terrible, it might mean companies had to do a decent job.

If the job is sub-standard then you withhold the final payment and agree on a list of remedial work. If the job has been done to a satisfactory standard I fail to see how you can justify withholding money just in case something happens in the future!!

It might also mean you find yourself in court or the debt being sent to debt collectors and admin fees added.

It's just a ridiculous idea

.

ian103

i wouldn't pay them any more until the works are completed to your satisfaction and they liquidater has provided the insurtance backed guarantee which they probably won't. once you've paid you have no leverage so argue until you get what you require. i would be surprised if the underfloor heating guy will return as you can only legally deduct the cost to complete the installation as the debt for the currently installed works lies with the original contractor.

i would suggest that as a fall back position you would have to be prepared to pay for the properly completed works todate less the cost of obtaining the guarantee for the elements of the work completed by the original contractor BUT I wouldn't be parting with my cash until everything was sorted!

Hintza

arcon5 wrote: »

It's just a ridiculous idea

.

Standard clause in most building contracts (not sure about conservatories but I would have it in for 2.5%-5%).

arcon5

Hintza wrote: »

Standard clause in most building contracts (not sure about conservatories but I would have it in for 2.5%-5%).

This might work for a B2B contract, not a B2C contract for a conservatory.

And the B2B contract would likely include this clause in the agreement, not be introduced retrospectively at the end of the project. If op wanted to do this, then it should have been discussed as part of pre-contract negotiations, the fact she was thinking about doing it nearing the end is out of order.

ian103

most proper forms of building contract have provision for retention funds of 2.5% once complete and 5% upto completion, but not normal for minor building works.

BUT why should the OP be talking about only having the 'retention fund' as at present the works are incomplete and the insurance backed guarantee will probably never be provided so the initial stance has to be no more money until you have completed the work including the guarantee.

to value the conservatory in its current stae it is the total cost of the conservatory less the cost to employ others to complete the works that have not been finished less the cost of obtaining a suitable guarantee, I would be liasing with the liquidator to see what they are proposing but i wouldn't be releasing any more funds until complete

DVardysShadow

arcon5 wrote: »

This might work for a B2B contract, not a B2C contract for a conservatory.

And the B2B contract would likely include this clause in the agreement, not be introduced retrospectively at the end of the project. If op wanted to do this, then it should have been discussed as part of pre-contract negotiations, the fact she was thinking about doing it nearing the end is out of order.

You are right about the time to include a retention in the deal. But no reason not to do it if you are a consumer. The need arises form the product and service being supplied, not from a generic classification of the customer as 'Business' or 'Consumer'

Flyboy152

Hintza wrote: »

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.

Because he would owe them the money. Or do you not think the creditors have a right to be paid?