building contract - can anyone help me decipher?

PaulJM

Hello all,

I've just had a contractor finish a loft conversion. The end result is pretty good, though it ran over, from a contracted time of 7 weeks to 13 weeks. Mainly building control were to blame, but IMO the contractor didn't exactly hurry, and although he doesn't agree, I think his dithering and sorting other jobs out cost us 4 weeks over.
Anyway, it's done now.

I've got the final bill, and using an official JCT contract, I had broken out the payments into 3, at stages agreed with the joiner, and a final "retainer" of about a thousand pounds.
I'm about to pay the final payment, but the issue is around the retainer.

The contract on this point seems irksome, and I've interpreted it differently than the joiner.

The contract says,
"The customer will not have to pay the remaining 5% of the total price until 14 days after the contractor has put right all the faults he is responsible for, and which arose 3 months after the work was finished (See condition 6c"

I've written int he space for the payments
"14 days after the final fix (See below)"

COndition 6c says -

"the customer will pay the remaining 5% of the total price no later than 14 days after the contractor has put right all faults which:
i) he is responsible for, and,
ii) the custiomer prompty reported as having appeared at an time between the date the work was started and 4 months after it was finished.

So, I want to pay him in 3 months, plus 14 days.
He's just invoiced me to ask for this in 14 days from yesterday.

It's not the money, it's the time this 3 months gives me to let it settle in, and get him back if any probs shows?
What do you think?

Sambucus_Nigra

a - the 3 months and 4 months contradict themselves, which is it? Is the 4 a typo?
b - remind him it's payable after 3/4 months plus 14 days after the end of the job, and only if he's put any faults that you promptly report

PaulJM

Sambucus_Nigra wrote: »

a - the 3 months and 4 months contradict themselves, which is it? Is the 4 a typo?
b - remind him it's payable after 3/4 months plus 14 days after the end of the job, and only if he's put any faults that you promptly report

Thanks, it was a typo, edited now.

I thought it was abiguous, especially since I obviously misinterpreted it myself when I wrote the payment stage.

You obviously think it's clear though.

phill99

The 5% is what us known as a retention fee. It's money held for an initial defects period. ( do not confuse a defects period with a guarantee).

It's designed so that if anything occurs in he first few months of using the loft conversion which is down to the builder, you have a bargaining tool to get him to come back and fix it.

Your interpretation of the 3 months time lapse is correct. He has to wait 3 months and must fix any defects within that period. Then he can invoice you and yo are due to pay him within 14 days after that three months.

If he gets funny let him take you to small claims court.

teneighty

As phill99 has already said, your interpretation is correct. The 14 days refers to your requirement to release the retention within 14 days of making good defects, so that is 3 months and 14 days, assumming the contractor has corrected all the defects and the job is signed off.

Depending on what form of JCT contract you used has practical completion been certified? That triggers the start of the 3 months. Also the retention is normally reduced to 2.5% after practical completion but that depends how you worded the contract.

Please ignore my ramblings above, I now suspect you've used the home owner version of JCT for very small projects which I know diddly squat about although I do know there is no retention and no practical completion.

Thank you and goodnight.

keystone

There are arguments for both interpretations as the two clauses are in conflict anyway and I suspect the builder is relying on your "14 days after final fix" addition which is itself open to a serious amount of interpretation.

There is no point in a head to head d..... measuring contest over this.

If you can't reach an amicable agreement then you should take this to whomsoever is nominated in the contract as the arbitrator having previously agreed that you will both abide by their decision whatever that might be (as, indeed, you have to but its still worth mentioning it).

Cheers

iamcornholio

PaulJM wrote: »

I've written int he space for the payments
"14 days after the final fix (See below)"

If you are using one of the JCT homeowner contracts , and have written this in, then you have altered the standard payment clauses within the contract (ie the 3 month plus 14 days clause) and it would seem that you have agreed to pay him 14 days after the final fix.

So the joiner is correct