Can I terminate contract with a builder if they pursue me legally?

tallac

Things have gone a little downhill with the builder I am using for a large home renovation project. 

There has been no clear written work stages and the payments due for each stage. It wasn't set from the outset but the I tried to get this agreed midway through the project because informal deadlines were slipping but the builder was extremely resistant to being tied down in this way. Initially when I proposed the idea, he said he was a good idea and made suggestions, but each time I did a new version he still didn't agree. I did two rounds of edits to accommodate his suggestions and in the end he refused to agree to any written agreement as he doesn't work like that. He doesn't want to be committed in that way. I then drop the idea of getting something written down and hope that things pan out.

We're now on the last 5 to 10% of the project so it's really just the finishing work. But there's now dispute of payment and work. Last time we talked about things, we discussed the next payment would be due after a certain set of work has been carried out. Not a lot of work has happened since and many of the days they have not even turned up. Eventually they get to around finishing about 50% of that work. I already felt like I had paid him more than the work has happened but he is now asking for the next payment which is a sizeable amount of the total balance left and claiming that he has finished the discussed work. I was not happy with this as I pointed out that the discussed work has not been fully completed. This fell on deaf ears and he kept insisting on the full payment. I offered them 50% of the payment as a gesture of good will but they refused.

During the discussions to resolve the issue, the builder made some fleeting comments about references to small claims court, solicitors etc. Not wanting to have all that drama for the the last 5 to 10% of the project, I then offered the full amount he was asking for provided we could agree a written down plan for the remaining work and the outstanding payments. I didn't want to run into the same issue again.

This has now dragged on for a while now. I have lost a lot of trust with them and I do not have faith they are going to do the subsequent work even if I pay them the full amount they are asking for without any conditions. Even though, right now, I genuinely feel like I've paid more to them than the work they've done so far, I'm happy to cut my losses and get another builder to finish the work. This is not what I want, and I know this will be more costly but I'm prepared to do this so the project can progress. I really need to move in as soon as reasonably possible. I've done all I can within reason to make it work with the existing builder.

My question is, if the builder then pursues me legally via small claims court, solicitors or any other legal manner, am I within my rights to terminate the contract with him and have the work progress with another builder? I don't want the project to be put on hold while legal issues go on for months. If he does pursue legal action, will me terminating the contract just make my situation worse?

[Deleted User]

If you terminate the contract, you'll be liable for any costs of that termination. Whether that would be additional to the amount he is seeking, depends on the contracts and the sums in question.

Doozergirl

Write. 

Give him 14 days to finish the work as he has failed to progress with reasonable speed.  

Inform him that in the meantime you will be obtaining quotes from other builders and that if he fails to finish in that time, he can consider the contract cancelled and you will pursue him for the difference between his agreed price minus what has been paid to him and the average price from those quotes.    

That last para was word soup.  But you might know what I mean to say! 

twopenny

Doozergirl has it spot on.
You've been more than reasonable in trying to accommodate him. Time to turn the tables.
You might also ask him why he hasn't finished the planned work, why he is not turning up as agreed. He may reply with an understandable reason you never know.
Also start with you're pleased with what is finished but, well as above. Give him something positive to respond to.
If he still doesn't come good then is the time to get tough.
I hope you've got records of what was done, when and your payments. Do the same for what still has to be done.
It's on your side as there is no contract. Being paid as he goes and no paperwork is not going down great for him with the legal position.

Rosa_Damascena

This chap needs an incentive to finish off the work. Paying up now will be counter-productive so hold your nerve and force his hand as DG is suggesting.

greenface2

tallac said:

My question is, if the builder then pursues me legally via small claims court, solicitors or any other legal manner, am I within my rights to terminate the contract with him and have the work progress with another builder? I don't want the project to be put on hold while legal issues go on for months. If he does pursue legal action, will me terminating the contract just make my situation worse?

what contract ?? if you have a CONTRACT what does it say about steps in the work and when payment is due 

Doozergirl

greenface2 said:

tallac said:

My question is, if the builder then pursues me legally via small claims court, solicitors or any other legal manner, am I within my rights to terminate the contract with him and have the work progress with another builder? I don't want the project to be put on hold while legal issues go on for months. If he does pursue legal action, will me terminating the contract just make my situation worse?

what contract ?? if you have a CONTRACT what does it say about steps in the work and when payment is due 

If they had a written contract, I don't think they'd be asking.  The contract has been created by other means.  

Why the shouting?  

tallac

Doozergirl said:

greenface2 said:

tallac said:

My question is, if the builder then pursues me legally via small claims court, solicitors or any other legal manner, am I within my rights to terminate the contract with him and have the work progress with another builder? I don't want the project to be put on hold while legal issues go on for months. If he does pursue legal action, will me terminating the contract just make my situation worse?

what contract ?? if you have a CONTRACT what does it say about steps in the work and when payment is due 

If they had a written contract, I don't think they'd be asking.  The contract has been created by other means.  

Why the shouting?  

Exactly this. No written contract. Mostly my fault for not insisting on this but also getting the builder to commit to things like this and having things written down is like getting blood from a stone. It's progressively gotten worse during the project.

As I understand, a verbal agreement, paying deposits and some emails/messages can be seen as a contract from a legal stand point.

tallac

Doozergirl said:

Write. 

Give him 14 days to finish the work as he has failed to progress with reasonable speed.  

Inform him that in the meantime you will be obtaining quotes from other builders and that if he fails to finish in that time, he can consider the contract cancelled and you will pursue him for the difference between his agreed price minus what has been paid to him and the average price from those quotes.    

That last para was word soup.  But you might know what I mean to say! 

Currently the builders have a key to enter and exit as they please. They need this as I am not on site for most of the time they are there. If it did get to the point where I was telling them I'd be getting quotes from other builders, I fear they could do some malicious damage inside the property (especially if they knew they were going to leave the job or get kicked out anyway).

Can I change the locks to prevent them from accessing the property?

They still have a few tools and bits that is there's inside the property so if I did change the locks, then I would allow them to arrange with me a time for them to collect them.

Rosa_Damascena

tallac said:

Doozergirl said:

Write. 

Give him 14 days to finish the work as he has failed to progress with reasonable speed.  

Inform him that in the meantime you will be obtaining quotes from other builders and that if he fails to finish in that time, he can consider the contract cancelled and you will pursue him for the difference between his agreed price minus what has been paid to him and the average price from those quotes.    

That last para was word soup.  But you might know what I mean to say! 

Currently the builders have a key to enter and exit as they please. They need this as I am not on site for most of the time they are there. If it did get to the point where I was telling them I'd be getting quotes from other builders, I fear they could do some malicious damage inside the property (especially if they knew they were going to leave the job or get kicked out anyway).

Can I change the locks to prevent them from accessing the property?

They still have a few tools and bits that is there's inside the property so if I did change the locks, then I would allow them to arrange with me a time for them to collect them.

Is this a real question? Its your home, go ahead and change them, but I would suggest that if things are that bad you don't leave him unsupervised for your own peace of mind. If he doesn't finish the work within the permitted time put the tools outside and tell him he can collect at his own convenience.

bris

You are not in a great position tbh, the lack of a written contract is on their side not yours.

Your contract is verbal backed up by actions, those being him doing work, and you making payments.

 By writing to him to terminate the contract would probably be a breach of the contract you have as there is nothing to say you can do that. 

So the answer to the question is you can do what you like, terminating the contract is up to you, pursuing you for this breach of contract is up to them.

You could seek professional legal advice but those costs soon mount up. Coming to an agreement is the proffered option for you but when you talk to them have witnesses to back you up if they are being unreasonable.

The contract is what 5 10% from completion? The court may well take a dim view and wonder why you want to terminate a contract so near completion.

The possible key to victory by one side over the other may hinge on ho the contract has performed up to now. Have you paid in advance of stages? why change that now, this may favour them. Is it the other way about? This may favour you if it a bit of both then it's any ones guess but being near completion the key would be why cancel now, are they likely to run with your money from a near completed contract? This is the question a court would want to consider.