Builder's guarantee and liability

Cellbydate

I've recently had the roof replaced and still need to settle the bill. The roofer is currently working as a sole trader with employed staff, but informs me he is changing to a limited company next month. He's asked me to settle the account while the bank details are still valid.

I need a guarantee from him, to know that he's liable should any of his work or materials prove unsatisfactory.

Quite a few of us have been here before, where limited companies disappear overnight, shedding their liabilities, making any guarantee worthless.

As the work was undertaken under his current personal/business name, does he remain personally liable after forming a new company?

phill99

If he gives a guarantee in his name, he will be laible rehardless of a limited company coming into existence.

teneighty

Unless the guarantee is underwritten by a large company/organisation or an insurance policy it is not really worth anything, either from a sole trader or limited company. At best it is a good will gesture and gives you no more protection than your usual contractural rights.


A sole trader can cease trading more easily than a limited company and as long as they have been clever in hiding any assets, just as difficult to pursue.

phill99

teneighty wrote: »

Unless the guarantee is underwritten by a large company/organisation or an insurance policy it is not really worth anything, either from a sole trader or limited company. At best it is a good will gesture and gives you no more protection than your usual contractural rights.


A sole trader can cease trading more easily than a limited company and as long as they have been clever in hiding any assets, just as difficult to pursue.

What absolute rubbish.

In a sole trader situation, the person IS the business. They are one and the same thing. If an induvidual as a sole trader offers a guarantee, then he is personally liable, regardless of whether he closes his business and takes paid employment.

You evidently don't understand the different methods of establishing a business.