Problems with Builder's Invoice

Myrtle

I'm in the middle of a long process to renovate my house. So far it's been going well and the builder seems a good 'un.

However, he's given me an invoice for an interim payment.

I told him after the last one that I couldn't pay him any more until the money from re-mortgaging my house came through (and that was held up because he took ages to provide me with proper written quotes). I WILL be able pay him within 28 days but he has told me that he will be passing on his interest payments and bank charges which are mounting rapidly.

Can he do this? Should I ague about it or just pay up on the grounds that he's doing a good job and I don't want lose his services?

Acc72

Do you have a contract with the builder ?

Did you agree payment terms / payment schedule ?

Is he giving you full proper VAT invoices etc. ?

(Not being clever - I was in a similar situation and had none of the above !!).


He doesn't sound like a "good 'un" to me - he is basically trying to blackmail you !

I would speak to him and agree on a payment schedule - if he tries to add interest and charges I would ask him to leave the site.

If he is playing up now, then your problems will only get worse in my experience (better to cut your losses asap).

Myrtle

Acc72 wrote: »

Do you have a contract with the builder ? I've got an agreed schedule of work, but no signed contract.

Did you agree payment terms / payment schedule ? I have full written quotes. The invoices say that money is due as soon as invoice is presented.

Is he giving you full proper VAT invoices etc. ? Yes

He doesn't sound like a "good 'un" to me - he is basically trying to blackmail you ! I still think is is ok. The standard of workmanship is good. I just think he's expecting me to pay too soon. Especially as I'd explained the situation to him.

I would speak to him and agree on a payment schedule - if he tries to add interest and charges I would ask him to leave the site. Gulp! Then I'd be back to square one trying to find a decent builder.

I just don't know what to do!

Debt_Free_Chick

To be honest, I can see the builder's point of view and phased payment is not unusual. Essentially, he is carrying the cost of the materials he's bought, together with all the other business costs, and he's not had a salary whilst he's been doing this job.

Can you not pay him anything at all? How much is this bill for? And how long since he was last paid?

I think the agreement you have with him is sufficient vague to enable him to invoice you weekly and to expect to be paid, weekly (as it simply states that payment is required when an invoice is presented). So it would be difficult to argue that you are entitled to withold payment, especially if he's invoiced you for work that's now been completed.

What, exactly, has he invoiced you for? Has the work on the invoice been completed? Is there a full list of materials?

Myrtle

Debt_Free_Chick wrote: »

To be honest, I can see the builder's point of view and phased payment is not unusual. Essentially, he is carrying the cost of the materials he's bought, together with all the other business costs, and he's not had a salary whilst he's been doing this job. I cant argue with you here. I agree it's entirely acceptable for him to need paying during the work. I thought he'd was ok with waiting til I'd got the money in my account.

Can you not pay him anything at all? Not unless I borrow it How much is this bill for? Several thousand And how long since he was last paid? 4 weeks

I think the agreement you have with him is sufficient vague to enable him to invoice you weekly and to expect to be paid, weekly (as it simply states that payment is required when an invoice is presented). So it would be difficult to argue that you are entitled to withold payment, especially if he's invoiced you for work that's now been completed.

What, exactly, has he invoiced you for? Has the work on the invoice been completed? Is there a full list of materials? The invoice has no details on it. Looking at his first quote I don't think he's done as much work as he has invoiced me for but it's not far off. I have asked for a more detailed quote so I can ask the Building Society for more money if necessary, but he hasn't done one yet.

Thank you for taking the time to reply to me. It is much appreciated.

Acc72

Hi Myrtle,

The only thing I would add ....

As you have a schedule of works and full written quotes, the invoices need to be in the same format - so that you can see what you have paid for and what is outstanding.

It is not acceptable to just receive an invoice for £x thousand - how do you know what you are paying for ?

Also, you need this if one area of the project goes overbudget for some reason.

Eg. job (a) was budgeted at £2k but actually cost £3k - you now know that other jobs need to be tightened in to remain on budget (eg. getting less expensive fittings etc.).

Otherwise, you might find that your total costs go over budget, or if your budget is fixed - you may be left with unfinished work.

Good luck.

Myrtle

Grrrrr, he's done it again. :mad:
I paid the previous bill and now 4 weeks later he's sent me another. All fair enough except there are once again no details at all about what I'm paying for. The invoices paid/due are getting very close to the initial estimate and there's still a lot to do.

I've told him repeatedly to keep me informed of whether we will come in on budget or not. He's always said "more-or-less, yes". However as we get into the homeward straight it seems he was wrong. Now because I've asked for a final projection of how much it will cost to finish the job he's downed tools and left the site.

Anyone got any advice?

nickj_2

if he's given you an itemised quote then unless there have been any unforseen problems then you should only pay him the amount agreed .
if he's given you an estimate then the price will vary probably in his favour

alibo

Can I ask, how many bills has he sent you through the course of the works? and how many payments have been made?

Myrtle

I've been given 4 bills of which I've paid 3, the last came on Tuesday. The first two were for specific tasks e.g. re-roof. the second 2 were "stage payments" with no details of which jobs they covered (and he himself didn't seem to know when I asked him).

Am I within my rights to withhold payment until I get more written details? I only want to know so I can work out whether I can afford him to finish the job as I'd like or whether compromises will be needed. It seems to me he's acting very childishly. It's large sums of money involved here and I can't afford to keep writing cheques indefinitely.

The work he's doing is of a good standard but I feel like sacking him because he's giving me such grief.

Myrtle

I've paid him half until the information's forthcoming...........