Builders not coming back

ElliottFr

Hello,
We have done extensive renovation work under a JCT contract. After a good start the building company slowed down as they started on an other project in parallel. We had no news for a month and then they came back for a week, finishing about 80% of the work in October. Since then, no news, no answer to calls or email even as we are proposing to pay the 80% (we have paid about 50% of the contract so far). We don't understand what is going on given we owe them payment (we were even checking online if they were going bankrupt!), and are wondering whether we should send a formal notice of termination of the contract to get a response (and also to contract someone else to finish the last 20%).Is there such a notice?
Any advise on which route to go please? Many thanks in advance,
Regards
Elliott

teneighty

https://corporate.jctltd.co.uk/termination-under-jct-building-contracts/

Some helpful advice in the JCT blog above. As it says the process needs to be followed properly otherwise the contractor can come back with a counter claim.

It really depends which JCT form of contract you are using and whether a completion date has been included otherwise it could get very messy.

Furts

What programme was agreed before the work commenced? Similarly, you will have agreed stage payments - what dates were these tied to, and also what stages?

It will be expensive to get somebody else to finish the last 20%. Do not think it will be just your remaining 20% budget. Consequently hold onto all the current stage payment until you establish what is going on.

There is also the thorny topic of defective work. What have you been checking here and how has this been monitored? If the work is bad it will be even more expensive, and more difficult to get a builder, to finish the remainig work.

Have they vanished because they believe they are owed large sums? To help answer this what was the last invoice raised by the builder, and when was it due to be paid?

ElliottFr

Very useful link, thankyou.

ElliottFr

Hello,
Many thanks for your response. I had issues with my login unfortunately so could not read you earlier.


The program was due to finish last June as per JTC contract. We were ok not to penalise for a couple of months delay and we said so verbally when they realised work was harder than anticipated in May. Unfortunately, after that worked slowed down significantly (and it became apparent they started a new project in parallel). The first couple of monthly payments have been paid on time following standard process, with an agreed valuation/meeting followed by their invoice. Since June, we have not paid or received any further invoice. They came back for a week in October and then since then absolutely no news. We did issue a large valuation in November together with a list of outstanding items. We still have no response despite chasing. We cannot understand why.


To your point, if they are not coming back, should we pay that valuation amount without agreement, without invoice and given it would be more expensive to finish the work with other builders?


Now we need to move on (with them or others) as we have key heating/ boiler issues. We sent them a note last week to give them a week to come back to us so we can pay and they can finish the work, or we terminate the contract.


Is there different types of termination notice? Should we include all the emails we sent them (+ text and unanswered call days) to show our best intention?
Many thanks for your advise.

Furts

ElliottFr wrote: »

Hello,

The program was due to finish last June as per JTC contract. We were ok not to penalise for a couple of months delay and we said so verbally when they realised work was harder than anticipated in May.

Since June, we have not paid or received any further invoice. They came back for a week in October and then since then absolutely no news.

We did issue a large valuation in November together with a list of outstanding items.

I am puzzled. You have not paid anything since June, so why would the builder return? You claim you issued a large valuation in November - is this not the role of the builder to apply for payment? But you say it is a large sum. Considering the builder has not been on site for five months this says a large sum of money is owed to them. Which in turn might explain why you have not seen them. You then refer to outstanding items - do you mean defects, or is this still work to be completed?

All round this sounds muddled and confusing. The impression that comes across is not just that the builder has done a runner, it is that you have not acted professionally. Of course, this impression could be wrong, so over to you here.

teneighty

You haven't said what form of JCT contract you used, however, generally you would have 2 grounds to terminate the contract.....abandonment of the works and/or failure to proceed with due diligence.

It is a very bizarre situation and I suspect there is something going on behind the scenes, why wouldn't the contractor bother invoicing for outstanding amounts. Anyway because you did not issue a certificate of non-completion or an extension of time back in June it is a right mess now.

I do not think you are going to able to make a clean contractual break as you have not complied with the contract either so you will probably have to try a negotiated termination or try to convince them to come back and finish the work.

ElliottFr

It is the latest 2016 JCT online Minor Work contract. Indeed I did not issue a certificate of non completion.

moneytorques

So what was the outcome.

jakemillspaek

Lesson here is don't use Contracts which you do not understand.Only use them if you have professional support (QS,PM or Architect) to implement them.

Mistral001

Old thread. The OP has not been back since Jan 2018.