Arbitration - Has anyone had any experinece of the process ?

MYLITTLESISTERLOLA

I'm locked in a messy dispute with my builder. Work is incomplete/defective and we're way past completion date. I'll not bore you with details but lets just say we've been double charged for some items, charged for item's he failed to provide and it was suppose to be a 12 week job and at 20 weeks we pulled the plug, build is about 60% complete but house is liveable.
We've tried conciliation and while report was favourable, a lot of important things were missed out. I'm considering arbitration (paper only) and I'm heading to a solicitor tomorrow to seek legal advice before committing. Just wanted to know if anyone had any experiences of arbitration, if so how did you find it ?
We paid additional for insurance (similar to FMB) so conciliation costs were covered and arbitration costs are capped at £800, given the findings in the conciliation report I would imagine this will be at the builder cost, if not I'm prepared to take that chance.
Would love to hear from someone who's been in my position or anyone who has more experience of these things.

Doozergirl

Yes, but on the other side. The arbitration was done by a specialist surveyor.

We were given a good piece of advice and that was basically to write down everything. We called him to ask what we could/should say about the client's behaviour as I was really mindful of remaining professional.

He said that people often got upset at him after the event because they didn't write everything down and would say "but this happened". But he can't base any decision on things he isn't told and can't change a decision.

We were given a limit but it was something generous like 14 sides of A4 for the statement, not including contracts, quotes, invoices etc. I think I used 10. It took me days to write, edit and re-check. It was really upsetting at the time.

The emails had to be copied in to everyone. I was ready well ahead of time but submitted five minutes before the deadline so that the client didn't have an opportunity to argue or twist what I'd written when he made his own submission. He submitted his minutes before I did, so I guess he had the same idea.

The cost was £900, iirc. Our half was covered by insurance. The job was finished so there wasn't much to assess in terms of valuing work etc.

It was one of our first paying clients when we moved from developing just our own properties and we were naive. The client was awful and took absolute advantage of my husband's good nature and need to please everyone. It was me putting my foot down (politely, in an organised meeting) that triggered the complaint. The surveyor agreed with us entirely and it put the whole thing to bed and we walked away having spent nothing more - much less than we would have done constantly trying to placate the guy. He was a cowboy client.

I hope there's a bit of help in there. It even makes my heart race so I can even feel it in my mouth, thinking about it .

MYLITTLESISTERLOLA

My heart is racing just reading your post - its all so stressful. I get what your saying, fault can lie on both sides.
I have compiled a 6000 word submission detailing all the issues as we see them with 70 pages of evidence (texts, photos, e-mails) in additional to conciliators report and builder estimate.
We are still within the 14 day limit for accepting/declining conciliation report. Wanted to get everything sorted and evidenced prior to agreeing to arbitration. (Runs to 107 pages in total:eek:)

Furts

Some years back I was in a similar position - a consumer considering arbitration against a (big) builder. After much toing and froing I never went ahead. All sorts of issues but the bottom line was the info I was receiving via contacts and the construction industry coupled with my sense of being streetwise/savvy meant I felt it was likely to be a failure.

Briefly ponder your scenarios - but only you know these and I can only speculate. How competent will the Arbitrator be? What interest will there be? What professionalism? OK you could say "cynic" but do a reality check on Arbitrators - if one scimps, or is slipshod, or is a complete idiot, you will have little redress.

Then look at the costs - what can one expect for say £900? The answer is very little.

Then consider the evidence - will the "70" pages or more extreme the "140" pages be carefully read and meticulously analysed? I suggest not and all the more so when you factor in the other side submitting as much and the Arbitrator being on a fixed price.

Now the opposition. They could be vastly better at all the process than you. They might have been there before. Plus ultimately the decision will go one of two ways and could be a toss of a coin. Which means nobody goes into Arbitration (or a court) knowing they will win. That is because one side will loose and until the outcome nobody knows who the looser will be. If you loose what then ... with arbitration you are stumped. But here ask a legal bod because I am a construction person.

Now the fixed price. Be realistic - this is all about minimising time spent and maximising profit. Solicitors are masters at doing this - "see me for 10 minutes and an hour is charged at £200 +VAT." Arbitrators are gloried up market solicitors. Or put it this way - everybody wants to make money and most with little scruples. Even respected brands are corrupt or dodgy - Volkswagen?(emissions), Facebook? (privacy), John Lewis (gig economy with internet, lorries and such like). Do you think Arbitrators are any different?

I did once know an Arbitrator. Did I trust him? Did I feel comfortable in his presence? No I did not. Of course, one cannot judge just on one person but I have come across many "professionals" in my life. Many are not what one might imagine.

There is much more but you will get a flavour here. Be realistic - I am simply giving an alternative and perhaps controversial viewpoint. But there is substance in what I say - it should stimulate your thoughts.

You could dismiss my views but bear this in mind. I have been involved in Conciliation, in Mediation and in all sorts of professional scenarios. Which means I am not a total ignoramus when I make my observations!

VfM4meplse

OP - my suggestion is that you take your report to an acquaintance (ideally one that has not been pre-conditioned with any knowledge of the case) with a good eye for critical reasoning before you actually submit anything. You are far too close to it, and some objectivity will be incredibly useful here, especially if there are arguments within are fallacious. As Furts alludes to, unnecessarily noise will irritate any reader and serve to dilute your case.

This is something I occasionally do for friends (I have a strong background in assessing evidence in another discipline, but it's a highly transferable skill), it's not always what they want to hear but it's done in good faith and can save a lot of money and hassle. And whether the advice is heeded or not, I am always right.

ETA: asking someone to read 140 pages overnight with no notice is a big ask, though!

MYLITTLESISTERLOLA

Thanks for both your replies.

I have tried to keep all my arguments factual backing each up with evidence, taking the emotion and he said she said out of it. I have had several people look over it who I would consider knowledgeable, I've had an architect agree with my findings and I've had several other workmen add to the report with additional findings.
In all honesty the builder is a small independent who is unlikely to have been through this process before and has shown himself to be inept when responding to paperwork/deadlines in the past (he seems to ignore things and hope they'll resolve themselves). My guess is he'll probably not even contest it, which would be very foolish.
The conciliation report found 24 defective items and an additional 7 which deviated from architects drawings. Defective items include the new extension lead flashing being nailed to existing façade and sealed with mastic sealant not cut and raggled as in architects drawings.
I feel if we were to go to court I would be 90% certain of success in some form, I feel as arbitration is covered by the insurance this would take away the 10% risk.
I have concern about the level of in-depth investigation given the limited fees, I've spend a huge amount of time making sure my submission is easy to read, in depth and in the correct order
I'm off to the solicitor soon and will report back

brightontraveller

[FONT=&quot]Before throughing anymore monies away do they have assets? Are they LTD, Sole trader etc [/FONT]

MYLITTLESISTERLOLA

Sole trader, with assets. Insurance covers maximum of £15,000 should he fail to pay and after solicitor consultation I feel the arbitration costs are likely to be awarded against builder meaning this process shouldn't cost us anything additional. Court on the other hand would cost 000's and seems like too big of a risk.

VfM4meplse

brightontraveller wrote: »

[FONT=&quot]Before throughing anymore monies away do they have assets? Are they LTD, Sole trader etc [/FONT]

Good point, the OP could sink a load of money into this and end up enjoying a very pyrrhic victory.

And the builder would just start again tomorrow.

Furts

VfM4meplse wrote: »

Good point, the OP could sink a load of money into this and end up enjoying a very pyrrhic victory.

And the builder would just start again tomorrow.

But whose name are the assets belonging to? The sole trader may appear prosperous but dig deeper and it could be a different story.

VfM4meplse

Furts wrote: »

But whose name are the assets belonging to? The sole trader may appear prosperous but dig deeper and it could be a different story.

Thats where a [STRIKE]wife[/STRIKE] silent partner comes in handy.