This weekend the NZ herald carried the article that our builder (BC) has just been expelled from his lifetime status as a master builder. He met with us 2 days before to let us know he had had a meeting with his creditors and that he had offered to pay them 50c to the dollar. The builder claims his company is going under because he stood by and tried to fix some leaking home problems from years ago. He was trying to do the honourable thing but its sinking his company.
He also said that some of the bigger creditors have said they will support him in helping him complete the builds he had started (apparently about 10 homes) in the hope that they recoup some of their "investment" into those houses - by which I expect they mean their building materials, that has not been paid for. I see all the small tradies being burnt by this as they may not be able to survive carrying debts that big or for that long. That is very devastating.
The builder is proposing that he will draw up a legal document saying that we pay only for a specific invoice on our own builds and he will email proof that he forwards that payment immediately. In that way he hopes to complete the builds he started so that his creditors recoup some of their losses and he does the "honourable" thing by completing our homes. We haven't seen the document yet but plan on handing it to our lawyer. Im not keen as I can see some tradies that have been burnt trying to claw back some of their losses directly from us or using our monies as leverage against the builder for past debts. Also Im concerned that since we have to have "stage payments" we maybe hit later with the full stage payment and thus have to double pay on an invoice - although I suppose the lawyer will catch these things. Hubby wants to see the document as he believes our "fixed price contact" would have escalated by least another $100K over the past 2 years.
In the meantime we have contacted a few of the other clients and hope to meet and discuss as a group.
He also said that some of the bigger creditors have said they will support him in helping him complete the builds he had started (apparently about 10 homes) in the hope that they recoup some of their "investment" into those houses - by which I expect they mean their building materials, that has not been paid for. I see all the small tradies being burnt by this as they may not be able to survive carrying debts that big or for that long. That is very devastating.
The builder is proposing that he will draw up a legal document saying that we pay only for a specific invoice on our own builds and he will email proof that he forwards that payment immediately. In that way he hopes to complete the builds he started so that his creditors recoup some of their losses and he does the "honourable" thing by completing our homes. We haven't seen the document yet but plan on handing it to our lawyer. Im not keen as I can see some tradies that have been burnt trying to claw back some of their losses directly from us or using our monies as leverage against the builder for past debts. Also Im concerned that since we have to have "stage payments" we maybe hit later with the full stage payment and thus have to double pay on an invoice - although I suppose the lawyer will catch these things. Hubby wants to see the document as he believes our "fixed price contact" would have escalated by least another $100K over the past 2 years.
In the meantime we have contacted a few of the other clients and hope to meet and discuss as a group.
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