Builders negligence? retention wall started a year ago and still not finished...

wendyshouse

Background: after planning / building warrant obtained, we asked a builder to build a large retention wall. Work started then stopped, started again, then stopped etc.  6 months later (december 21), we had a third of a wall built and realised the wall was not straight at all.  Strutural engineer came and, on top of agreeing that the wall had a bent,  said that foundations were inadequate.  By that stage, we had paid 3 of the 4 installments, totalling over £30k. 
A subcontractor came, dug foundations and we have now proper foundations.  This was a month ago and no progress since.  Builder now says that we need to pay him our last installment or work won't be taking place.  He is also saying that he doesn't want to ho down the PLI route but that s what his accountant has suggested to him.  
The retaining wall borders a school playing field and school want their field back with normal high fences (heras fencing currently).  
Our house insurance has been updated when work started but they expect completion by July 22. 

Builders keeps saying he wants to finish the wall but nothing happens.  We fear that paying our last installment will cover his loss and not any future work.

Should we ask another builder to carry on work and claim builders' negligence on builder number 1 for failing to finish work? 
Any advice?

the_lunatic_is_in_my_head

Sorry to hear of your troubles OP  

Personally I wouldn't be paying another 10k given the past history otherwise the builder has no incentive to finish the job, although I'm guessing from what you've said you don't have 75% of the work done so even if he walks off now you are out of pocket.

Consumer rights state you are entitled to a repeat performance if the service does not conform, if the builder paid for new foundations then they appear to be meeting that to a degree and your issue is just one of having the job finished. 

Perhaps best to write to state you will pay the final amount due upon competition, if the work isn't completed you'll pay someone else to finish the job and if that comes to more than 10k you'll seek to recover the difference from him. 

It's always tricky with builders as a soured relationship can lead to more problems as the builder is unhappy which leads to poor work or just not showing up however it sounds as if the relationship is already soured (through no fault of your own ) so you don't have much to lose by being firm. 

Not sure what PLI is?

wendyshouse

Thank you for your reply.  You have captured the situation perfectly. 
We don't want to pay any more but finding a builder to finish someone else's job is going to be tricky. 
PLI is his private liability insurance.  I dont know how he would have a claim as we have not sued him!?

Equaliser12345

PLI could be either public liability insurance (accidents) or professional liability (mistakes).  Check which it is.  But you are better not claiming negligence but breach of contract in that the work hasn't been completed within the timescales agreed or (if no timescales) within a reasonable time

wendyshouse

Thanks for your comments.  Very useful. It must be professional liability then.  Going to look up breach of contract.  

Equaliser12345

wendyshouse said:

Thanks for your comments.  Very useful. It must be professional liability then.  Going to look up breach of contract.  

The reason I'm suggesting that you claim in contract is that the damages you receive in a negligence claim are designed to put you in the position you would have been in BEFORE the negligent act (i.e. remove the work he has done).  Contractual damages put you in the position you should have been in IF the contract had been performed correctly (i.e. with the properly completed work).

pinkshoes

I would put in writing to the builder that you are MORE than happy to pay the final instalment, but ONLY when the work is complete, and could be please give you a date when the work will be completed.  

It might be worth getting another builder in to quote how much it is going to cost to finish the work, and whether the remaining £10k will cover this. This could be used as a good negotiation point for not paying any more until the work is done.

It sounds to me like your builder might have financial cash flow issues, so it is not wise to pay him anything else until he has finished the job.