Need help...Builder cost gone up.

Hi Markymark,

From what you have said it sounds like you have nothing to worry about as you have a written contract and records of any changes. It sounds like additional work took place to fix some defects that they caused and they now want you to pay for it. This does not sound reasonable.

Given the large amount I think it might be worthwhile getting advice from a solicitor or a retired one hanging out at your local Citizen's Advice Bureau. You need a formal response letter drafted and sent.

I hope this helps

Tony

From hearing people's stories it sounds like some builders do this all the time. They know that you will want the works completed as soon as possible so bully people into paying up front.

If your contract is sound you have nothing to worry about Mark.

Hi Mark, I hope this all gets sorted out for you. I think that with a build like this it would always be worth having the project management plans yourself or making sure that you have a really good project manager who goes through things with you every day, highlighting any issues. Their job is to identify all of the changes and additional costs that do, inevitably, come up with a large project like this. The point is that while additional costs may be inevitable if the original budget didn't take things into account, they can be considered as they appear and decisions can then be made as to whether you can afford those costs or whether you need to downscale or change your specifications in any way.

I think that a lot of people think that project management is a waste of money and that they can do it themselves, however a good project manager, in my opinion is worth their weight in gold as they will avoid final shocks like the one that you are having now. Anyway, good luck.

markymark said:

We have just spent £70,000 on an amzaing extention and met with the Owner of a building company who promised peace of mind during the build, they would do everything from Project manage, build right throught to painting, We met 8 times to agree price, design and other things.

We agreed to pay half upfront and the rest on sign off from the local council building team, we got our completion cert and an email from bulider for the rest, now his email said he needed the "OUTSTANDING BALANCE PAID" we did this 2 weeks ago and they are now demanding another £14,000 for parts of the work.

Now I have a written agreement and many verbal agreements on costing and if we ever needed to change anything the price had to be agreed first either by letter or by email (before work done). His site manager is stating that we agreed to certain extra work to be done, but we were under the impression that the these were in the full build price, ie, Lights sockets, pipework?

They messed up our external stairs and they required handrails now they want me to pay for the extra treads and handrails.

I now cant eat of sleep and the Mrs wants to sell her dream home!!! this extention was her dream for 6 years.....

HELP.

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Sounds like the start, maybe, of a big problem - or could be the opportunity to nip greed or confusion in the bud?
Often site managers do not know the details of the agreed contracts. They are responding without information.

I suggest:
- get all the papers together which define what work was agreed at the agreed price.
- make a list of any meetings and what was agreed, in your viewpoint, at those meetings.
- do the same for all verbal dicussions.
- With the above, have a meeting with the builders owners, record the meeting - pointing out how previous understandings were now a confusion.
- Remember - even though they may be greedy, they really want to finish the job without complaints and court cases against them.

There may be a way forward out of the situation which makes everybody happy. They should do what they originally agreed to do at the agreed price.
Detailing everything on paper will always be to your advantage.

At a certain point, which you may already have reached, it may be time for a consultation with a solicitor. Often, the realisation that legal action is being considered may be a great incentive for a builder to finish a job at an agreed price. Many builders who work in desreputable manners also do not pay all their taxes and insurances as they should - they often prefer to minimise those kind of potential problems.

never pay half - upfront for jobs under 10 k

under 10 k - you should pay 30% before the builders starts the jobs - 40% during the job - 25% after the job is finished and 5 % 1-3 months later after the job is declared finished.
The 5% mean repairs. As a builder, if you build a kitchen extension in 3 months - the plaster to dry up completely needs 3 months before you can paint the walls. The builder has to paint the walls before that, but a good builder knows he has to come back on the job and a good builder tells the customer before the job starts: I will have to come back 2-3 months later to repair the cracks and drying woodwork. The customer goes ; yeah, OK. ( he or she thinks that you are not very good )

For jobs over 10 k - the payments are in stages. A 70 k job means around 6 k upfront - 8k foundations - 10k walls - etc