Building contractor - false invoicing

lyber28

My building contractor keeps charging for items already paid repeatedly. This is all hidden in a cumulative invoicing method where he forgets to continue the cumulative invoicing and then adds/deletes amounts which makes it very complex to understand. It almost feels like he is trying to cheat us by making this convoluted.

Adds material onsite, then charges another section, does not negate the material onsite used etc. Every single valuation has had issues. The project is also running few months behind practical completion date and not progressing as they refuse to provide a plan or meet with us.

They have ensured that some work is going onsite to show that they are progressing things. They are now valuing works that were done and charged previously making a minor change and charging again.

We have now reached a point where they are disputing invoices and cannot reach any logical conclusion. They are now pestering us to pay the invoice or threaten legal action. We have tried to be reasonable but reached an impasse.

We had signed JCT IC 2011 contract and would like to terminate on ground of cheating. Is that possible?

architectming

So are you the Contract Administrator? Has there been a payment plan agreed before work has started? Do you have the original tender that has been agreed with the contractor?

Just like another post in this forum, it is a complicated issue with a JCT contract, if you are not confident about what you are doing, seek professional help, either with your Architect or a Quantity Surveyor who know these type of contract inside out.

ValHaller

You would do better to send a letter demanding a plan for completion on a reasonable timescale, failing which you will rescind the contract on grounds on non performance.

Be aware that you will have to pay for works done and it looks like you need a professional of some sort (quantity surveyor?) to sort this out. So you should attrmpt to keep the amount owed in dispute - citing some discrepancies by way of example - and stating that time must be allowed for your professional.

keystone

By the sounds of it he's not cheating he's just incompetant from a paperwork perspective and needs a proper bookkeeper. If he's letting you get in his knickers on cost breakdowns to the extent that you imply the if this is deliberate he's stupid. On balance I think he's not very good with a calculator.

Proving that he's "cheating" as you put it might be challenging. Is "cheating" grounds for termination in the contract in your possession?

Contract must have an arbitration clause in it. No? If yes why are you both not using it?

How much work has already been done? How much is left to do?

I am not sure why he would be disputing his own invoices - yes that is what you said.

I think you need the services of a QS with contract admin experience to iron this out for the benefit of both of you TBH.

Cheers

lyber28

I do not think we can reach an agreement. How can i hold the payment. I Have not specified variations and they are changing cost decided in the original tender.

To go to arbitration, I need to submit notice. The problem is the contract section 8.4.1 specifies termination before practical end date.

Can i submit notice on that clause even though the completion date has passed but the works agreed has not been completed.

paye

lyber28 wrote: »

I do not think we can reach an agreement. How can i hold the payment. I Have not specified variations and they are changing cost decided in the original tender.

To go to arbitration, I need to submit notice. The problem is the contract section 8.4.1 specifies termination before practical end date.

Can i submit notice on that clause even though the completion date has passed but the works agreed has not been completed.

if he has gone beyond his completion date without notification he is in breach of contract in which case you can hit him with LAD's that is if only you have a weekly rate for LAD written in the contract.

As a QS myself If a subby gave me a valuation which looked wrong I'll tell him to redo it or i would call a meeting and go through the valuation with him. I will not pay them anything until it;s right. Just remember your the client.

If they are coming back for extras which you know nothing about say to them as they carried out the work without a written/verbal instruction your not going to pay it as you knew nothing about it( depending on how well the contract is put together there should be a clause written in the contract on this.). Is the contract set up as Design and Build or traditional? I find traditional contract is a license to print money for the contractor where as D&b all the risk is passed on to the Contractor. Who set the order up with your contractor?

You should of employed a QS as he would have administered your project from start to finish.