Builder dispute - arbitration or small claims?

Chas_

Hi

Wanted to ask the forum's advice on the pros and cons of resolving a dispute we're having with a UK building firm.

We contracted a local building firm to do some major works on our house. Since the work was completed and the building company sent us a final payment notice (how much we owe now the job has been completed) we've been toing and froing over various snags lists - going on for over a year. Examples of snags are door wasn't able to close so needed planing. The tradesman that came back to plane the door damaged the hinges and screws refitting the door, then that work needed snagging.

The money the building company are asking for is around £1000. We're challenging them on some point in their final invoice. Also we've had a 3rd party builder on-site to complete work the original company refused to do - (work that was guaranteed in the contract we had with them). We gave them 2 months notice and the quoted cost on the extra work which they ignored.

As things stand today there are still some snags remaining, some fixable and some unfixable without major expense. For example stud walls and new stairs that are unacceptably out of plumb in our opinion. Two of the doors move by themselves to the middle of the door opening (finding their plumb line). The original company is aware of our final snags and the out of plumb issues. We had a meeting recently on-site with the owner who's only prepared to do the bare minimum (some of the snags) the get the job completed. He came out with all sorts of excuses trying to explain why doors move by themselves, why new stud walls and within acceptable tolerances when they're 2cm out of plumb over 4 foot etc.

The job has been certified by a BCO. We've paid the original building company over £40k to date. Some of the work has been to a good standard and some to a very poor standard which hasn't been rectified.

We have a full set of documents detailing all the issues we've experienced with them. We feel we've not paid a fair price for some of the standard of work we've received. Assuming we have case what are our options in terms of getting a partial refund from this company? Would you suggest arbitration or small claims court?

We would prefer not to have this companies tradespeople working in our house again. Is it likely that would be a term of a judgement from arbitration or small claims given the history?


Thanks for you help

Leif

Whilst I can't really comment on your issues, the fact that they have done £40K of work, and you owe them £1K, suggests that they are not going to throw a wobbly if you withhold some money due to faults, given that the remaining payment is small. Work out what is bad, the cost of rectification, and deduct that from the bill. Then pay it, and send a letter explaining the deductions. They might just write it off, as not worth pursuing. If however you think the faults are of a higher value, then you really need to consider the Small Claims Court. Arbitration requires an arbitrator. Trading Standards will do that if they are on a TS scheme. I don't think they will otherwise. I assume other arbitrators charge good money.

iamcornholio

Can you bullet point your actual questions - do you want to not pay them or reclaim money from them, or get work done, or what?

Its not clear whether it's you or the builder who will be the claimant

Did you have a formal contract?

Chas_

Cheers Leif and iamcornholio.

Can you bullet point your actual questions - do you want to not pay them or reclaim money from them, or get work done, or what?

Its not clear whether it's you or the builder who will be the claimant

Did you have a formal contract?

We would be the claimant and we have a formal contract.

Btw the £1000 the builder is claiming as final payment doesn’t take into account challenged items (which would leave £300 owed by us). Based on the advice from a builder friend, it’s looking likely that the outstanding issues with the building work would cost a lost more than £300 to put right, if we want to correct the stairs and spud walls issues.

• What are the risks of heading down the arbitration route?
• If we opt for arbitration is this website (ciarb.org) the best place to find an arbiter?
• What are the risks of heading down the small claims court route?

Thanks