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

tallac

So it's been a couple more weeks and nothing has progressed. The builder has strung me along saying people will show up but no one does. I wanted to be sure so I gave him a couple more chances but I'm now at the end of my tether.

If I send them a "notice before claim" giving them 14 days to finish their work. This is quite heavy handed compared to what I've done in the past. If he has not responded by 14 days or he drags the 14 days out with his usual excuses and disagreements, can I still terminate his contract and then file a small claims court on the 14th day? In the notice before claim letter, can I set out the terms for the rest of the work and payment schedule. From my side, I have already paid him for work that is yet to happen and he has broken my trust. Can I set out clear milestones that he must complete before he receives set out payment amounts?

During the 14 days while I'm waiting for them to respond, can I progress any of the work myself? If they agree to my payment schedule at the last hour, could they claim that I've sabotaged their work? Or is it best to leave their work without progress until they have failed to meet the deadline?

If the deadline has passed without getting a response from them or without reaching an agreement, I assume that I am free to progress the work and get other trades people in to start completing the work?

Rosa_Damascena

tallac said:

So it's been a couple more weeks and nothing has progressed. The builder has strung me along saying people will show up but no one does. I wanted to be sure so I gave him a couple more chances but I'm now at the end of my tether.

If I send them a "notice before claim" giving them 14 days to finish their work. This is quite heavy handed compared to what I've done in the past. If he has not responded by 14 days or he drags the 14 days out with his usual excuses and disagreements, can I still terminate his contract and then file a small claims court on the 14th day? In the notice before claim letter, can I set out the terms for the rest of the work and payment schedule. From my side, I have already paid him for work that is yet to happen and he has broken my trust. Can I set out clear milestones that he must complete before he receives set out payment amounts?

During the 14 days while I'm waiting for them to respond, can I progress any of the work myself? If they agree to my payment schedule at the last hour, could they claim that I've sabotaged their work? Or is it best to leave their work without progress until they have failed to meet the deadline?

If the deadline has passed without getting a response from them or without reaching an agreement, I assume that I am free to progress the work and get other trades people in to start completing the work?

This is exactly what you do to galvanise some action. Either they come back and finish the job or clear off and leave themselves open to a claim.

mug2007

We had a similar situation and we agreed to deinstruct all remaining works and then sorted it out ourselved.  We were told the termination route was too heavy handed.  We had professional advice and they didn't advise legal route as it would cost us £1000s on both sides and it was totally unnecessary for our situation.  The last 5-10% wasn't commercially viable for the contractor so it made sense to part ways.

Bigphil1474

OP, as above - can you terminate by mutual agreement?

tallac

Thanks for all the advice so far. A long post but please bare with it for full context and apologies for any repetition from the previous posts.

The remaining work to completion and the total amount to be paid is not in dispute. However, we are currently in deadlock with the builder (who is a member of the FMB). Here is the current information:

There has been no formal structure for work or payment. What has happened until now is the builder does some work and at various points, payment is requested for arbitrary amounts. This seemed to work fine at the start, payments were given on time and as requested and work seemed to progress roughly inline with payments (using the best of my judgement). However, for the last few months we have requested them to finish the water pipes, central heating and the elec wiring. These are key jobs that were in an almost finished state but they are stalling to 100% finish them, they have verbally admitted that the time to finish these tasks is a matter of a couple of days. They have even installed our expensive wallpaper and carpets before finishing the key jobs. This makes no sense as if there are issues with those key jobs then this would cause problems with the wallpaper/carpets and other finishings. I feel like they are doing this intentionally to hold us ransom so they can complete those key jobs at the last minute i.e. so they cannot be kicked off and be easily replaced by another team.

I've been asking them to finish these jobs on multiple occasions but each time they make excuses and continue to progress lesser important jobs such as cosmetic work and decorating. Additionally, work is progressing at a snails pace, the whole project should have been complete in 6 months but it has gone on for over a year. Most days they do not show up or when they do, they just come for a few hours. They make excuses about how they are waiting on their sub-contractors who do not show up for the days/weeks. After the sub-contractors finish their task, the team then progress tasks that were unrelated and could have easily been done before the sub-contractors came. For example, waiting for the sub-contractor to wallpaper the ground floor rooms and then the team fitting the internal doors on the 1st floor (the two are completely disassociated!). This has gotten progressively worse even before the deadlock.

We've tried multiple times to come up with a structured list of the remaining work and money to be paid at each stage. But they do not agree anything verbally let alone in writing. And the little hope they show of verbal agreement is then quickly forgotten or denied by them when it comes to putting it in writing. I try to communicate to them on email for accountability but they rarely respond except for requesting to speak on the phone or face to face.

I still feel I've paid more than the work that has been done but the builder is saying otherwise. I am not keen to pay any more until the key jobs are complete. However, they refuse to do any more work until they receive a sizeable payment first. Neither side believes the other any more hence the deadlock.

We have tried all reasonable avenues with the builder to break the deadlock. Our last attempt was to offer them a payment schedule that upon their written agreement, gives them their sizable payment upfront but then no further payment would be payable until they have 100% finished the key jobs. However, they refuse to accept even this.

Something that I have only recently realised, they have broken multiple rules of the FMB code of conduct. If we raise a dispute with FMB and it forces their hand to continue work in line with something we have previously suggested, then I'm not even sure I would have faith in them having dragged them through that process. I wouldn't put it past them to cause malicious damage when they are on site.

At this stage, what I'd like to do is terminate their contract on the grounds of unreasonable speed, failure to agree anything especially in writing and not prioritising the key jobs (as has been requested multiple times). Once terminated, I would then like to get quotes from a new company/tradesperson and be able to pursue the builder for the difference in cost. However, even if it is unrealistic to get the difference back from the builder, then I can move on with my life and swallow the cost. But what I don't want to do is be exposed for the builder to put a stop to the work, pursue me for terminating the contract or trying to claim that work they did has been unpaid.

What is the best route out?

Doozergirl

I'd use the FMB.  There is a clear procedure there and if they fail to engage then you have got clear evidence of that fact.  

https://www.fmb.org.uk/find-a-builder/dispute-resolution.html?gclid=CjwKCAjw092IBhAwEiwAxR1lRszbzUK7sOKbHLMZDPcK2-ScCIFxvMYRUW7ZDCtH5bFMRqcLFLwu1RoCrPYQAvD_BwE

the_lunatic_is_in_my_head

bris said:

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.

OP doesn't appear to have specifically detailed what information they received in writing nor how they found the trader and agreed the work but.... 

Unless the OP walked uninvited into the builder's place of business then it's an off-premises contract.

The trader is required to provide the consumer with the information detailed in Schedule 2 Consumer Contracts Regulations, if the trader hasn't provided the information the consumer is not bound by the contract.

Where the trader has not provided the information on the right to cancel the consumer can cancel the contract within the cancellation period, which is 1 year and 14 days if the information hasn't been provided, and not pay anything for the service even if it's been fully performed.

As always the devil is in the very fine detail of exactly what information was given via durable means but assuming the above applies I don't see how the court could find against the OP as the court should rule in line with the legislation. 

I understand these technical points may not be absolute in the real world but if it gets to the point the OP is faced with small claims it becomes relevant. 

itwasntme001

the_lunatic_is_in_my_head said:

bris said:

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.

OP doesn't appear to have specifically detailed what information they received in writing nor how they found the trader and agreed the work but.... 

Unless the OP walked uninvited into the builder's place of business then it's an off-premises contract.

The trader is required to provide the consumer with the information detailed in Schedule 2 Consumer Contracts Regulations, if the trader hasn't provided the information the consumer is not bound by the contract.

Where the trader has not provided the information on the right to cancel the consumer can cancel the contract within the cancellation period, which is 1 year and 14 days if the information hasn't been provided, and not pay anything for the service even if it's been fully performed.

As always the devil is in the very fine detail of exactly what information was given via durable means but assuming the above applies I don't see how the court could find against the OP as the court should rule in line with the legislation. 

I understand these technical points may not be absolute in the real world but if it gets to the point the OP is faced with small claims it becomes relevant. 

I am in a similar situation to the OP.

I do however have a written contract but it does not state anything about how to terminate it.  Does this Consumer Contracts Regulation still apply in cases where the builder has provided some of the materials such as bricks or steel beams?  From what I understand these are "inseparable" and therefore the regulations don't apply?