Conservatory company has gone into liquidation - help!

ThumbRemote

Jess wrote: »

I have now been told by the liquidator 'If there is work to be completed I suggest you negotiate new contracts with other suppliers/former sub-contractors.' so I guess I can go ahead and pay the underfloor heating company directly, although the liquidators have not confirmed that they will not come back to me for the outstanding cash. I will argue with them that if I don't get my guarantee then the value of the contract should be less.

Out of interest, how much have you paid so far, compared to the full cost? And how does that compare with how much work has been completed?

eg have you paid 20%, but 70% of the work is done? Or have you paid 70% but only 50% of the work is done?

I'm not quite clear whether you've underpaid or overpaid at present.

Regarding the liquidator coming after you for the remaining cash, under no circumstances should you pay the full amount unless the full works are completed to your satisfaction, including warranty. Personally, I'd be tempted to leave it a month or two just to let things settle down before trying to arrange any further work. It may be inconvenient, but it could be more straightforward to wait and see for a short while.

Hintza

ThumbRemote wrote: »

I'd be tempted to leave it a month or two just to let things settle down before trying to arrange any further work. It may be inconvenient, but it could be more straightforward to wait and see for a short while.

I would concur but probably advisable to start checking possible companies/tradesmen to complete when you get the green light. All too soon we will be in to the autumn.

laurel7172

I hate to say this, but be a bit careful about paying the underfloor heating company for work they've already done.

The builder owes them that money, not you.

Admirable as your desire to pay the subcontractors is, you really do need to know exactly where you stand with the liquidator, in case you end up paying twice.

However, I'm definitely not a lawyer-I did a *very short* course on contract law *many* years ago as part of another qualification, and this is what I half-remember:

http://en.wikipedia.org/wiki/Sumpter_v_Hedges

But nobody seems to have mentioned anything similar, so I wonder whether it has been superseded in some way?

In your position, I would think an hour with a solicitor would be a wise investment, because if my completely unqualified interpretation of the above is correct, and indeed it still stands, at this point you can tell the liquidators to take a running jump if they ask you for anything. If you do anything that can be interpreted as a new contract, you can't.

Which is why you need to pay for advice from somebody who REALLY knows what they're talking about.

Good luck.

Jess

ThumbRemote wrote: »

Out of interest, how much have you paid so far, compared to the full cost? And how does that compare with how much work has been completed?

eg have you paid 20%, but 70% of the work is done? Or have you paid 70% but only 50% of the work is done?

Hard to say how much I have paid compared to cost because I don't know how you put a value on a 10 year insurance backed guarantee but i would say that what we owe, which is the final payment, probably equates to the outstanding work IF the guarantee is worth no more than £1,800.

Things have progressed today as following on from the 'you are on your own you will have to employ your own contractors' comment from the liquidator I have now been asked by them to pay ALL the outstanding money - My response to that - NOT ON YOUR LIFE!

Thanks for all the advice. One thing i do know is that no-one is getting any money until a) the work is complete and I have a guarantee or b)the liquidator puts in writing the fact that they will not ask for any further payments and i have to sort it out myself.

Funny really - i went to this particular company because they had a good reputation and promised me that when they left the project i would have the conservatory of my dreams with no hassles along the way!! Oh well!

Johno100

Jess wrote: »

Things have progressed today as following on from the 'you are on your own you will have to employ your own contractors' comment from the liquidator I have now been asked by them to pay ALL the outstanding money - My response to that - NOT ON YOUR LIFE!

Good, stick to your guns. Liquidators never expect to recover much in the way of books debts anyway. They usually work on the basis of about a 20% being collectable.

I would respond to any future correspondence from the Liquidator by simply saying the debt is disputed, they will soon lose interest.

Fergie76

Flyboy152 wrote: »

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.

You might like try telling that to Duff and Phelps.

OutofDebt-NOT-OutofDanger

Flyboy152 wrote: »

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.

True (in theory), but often they only realise enough to pay themselves @£400+ per hour - nice work if you can get it!