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doubt you will get a bldr so close to xmas
Originally Posted by Nick G
Of the 3 or so quotes you received before selecting this builder and starting work, where was he on the scale of prices you received ?
"The pain of receiving poor quality due to paying too little lasts a lot longer than the pain of paying too much and receving good quality" or something like that !
So we went to a property specialist lawyer is Albany and asked him to read our various contracts and give us ALL solutions possible. The lawyer suggests we send a "notice of default" which would apply pressure on the builder. After 10 working days we will then have the right to terminate our contract with this building company. The lawyer says he knows a builder keen to take on our build??? He has brought this up twice already and not come up with anything else- should I be suspicious?
In the mean time we have reach the stage where the roof is finally on (Hurray!!!) The building company has issued us with the next "stage payment". It's been 1 Year since they started building.
We have arranged for a valuer to assess the progress as per bank requirement. We are thinking it may be worth getting a quantity surveyor to give an accurate cost to the build.
The builder is promising that the build will be "wrapped" and tight (assume he means weather tight) before christmas -
However the window and joinery company have called us because they have not been paid. They say they have aluminium frames made up but the will not purchase glass until the rest of the money is paid and the builder is not responding. Given that xmas is nearly upon us, they don't see the glass being in until late Feb!!!
The RMBA says I have to pay the stage payment or the "platinum RMB contract" will be voided????
Where to now?
This building company (CH) was actually slightly dearer than David Reed and others, (was mid range of all the quotes). They had an excellent "no cowboy" rating and we went to some of the homes CH had completed and the houses appeared to be of a high standard. Their quote was very detailed so we thought they would be quite thorough. The owner/director always made time to chat to us several times regarding all our concerns. Seemed like such great communication and the company appeared large enough to be able to carry the debt of building a house in the $1-2M range since they had several projects in that range.
Originally Posted by Nice
Furthermore, I had asked for a list of recent home builds they had completed and randomly called 3-4 past clients to get their feedback. There were some that advised we put everything we could into the addendum (which we tried to do),but there was no indication that CH had done poor work or was devious.
The builders on site, seem to imply that CH cash flow problems started about 2 years ago (about when he coincidentially got divorced and which was when we signed him up). Definitely did not choose cheapest - a poor choice nevertheless.
Last edited by Jellybean; 05-12-2016 at 02:10 PM.
Thanks for updating us Jellybean. This is never an easy situation when your builder mucks you around.
We closed in a carport area under our house about 7 years ago now. Made a rumpus room and workshop etc.
And the builder's marriage of 24 years went tits up half way through. So I know how it is.
That lawyer sounds OK, but you need to do all your checks again should you choose to use his builder. i.e. go and see the houses, ring the references etc. etc.
Re the glazing, can you pay the glazier directly? Then things don't get held up and the money won't disappear anywhere. Unless the glazier goes under... just kidding really.
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.
Well, my advice is vindicated.
Originally Posted by Jellybean
My concern here is you still seem to be trying to cling to some vain hope of rescuing this situation in much the same way as a gambler at the casino places another bet to try and recover the money they have lost.
Don't you get it yet? The guy is a dud. Cut your loses and run. Work in your own best interests. Don't give him another cent. Is there any part of this you still don't understand?
Blah blah bull****. The only thing you can be sure of is his large creditors will look after themselves.
Originally Posted by Jellybean
Last edited by MichaelNZ; 03-01-2017 at 09:24 PM.
I read this article and was surprised by his comments and even more surprised by the creditors comments regarding his character, it is very rare someone out of pocket supports the person that put them that way! Sounds like the guys a good tradie. Never the less if it was me i would be moving on and finding another team. All the best for the rest of the build!
Please keep updating us, this is an interesting and educational thread. I have had family in a similar position.
We are an architectural hardware supply company, we have supported several companies where they have been in a position of insolvency but have negotiated with creditors to trade their way out of it. But it does come down to how far in the poop they are, to put it bluntly. Some are unsavable so we have had to swallow the loss - these are usually the ones that you hear little about until it goes really smelly.
My experience is that the ones who are up-front and discuss solutions usually have a good chance of being able to resolve things with as less pain as possible, but it's never painless!! I would suggest staying in communication with the builder as much as practical also.
I would be cautious about moving on to another team in haste. I know from experience that it usually costs alot more as the new builder has to allow for alot of unknowns, so will price to suit.
My brother-in-law had a similar situation, he managed to negotiate a deal where he paid the suppliers directly and paid the original builder a set rate as a project manager to see the project through.
another fishook is the LBP scheme, how much responsibility will the "new" builder take for anything existing, i know of a builder who did a small repair on a leaky home and when the excrement hit the spinning thing a couple of years later he was dragged into the court case even though he had no part in building the house
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