# switching from contractor/direct build



## hoppy (20 Mar 2010)

Due to our lender refusing to loan us the funds to complete the works our build we which we had a very good contractor working on we find our in the position where the contractor has completed the work to the point the building is sealed ie ,roof and windows complete, it looks like we will have to finish the place direct labour over a longer period and to be honest we have idea what our next step is ,so  suggestions would  be appreciated.

p.s we didnt go over budget we decided to impoved the project by adding another bedroom ,which we were told verbally by the lender wouldnt be a problem

p.p.s yes we do now realise that the verbals from a lending institution are not worth the thin air they are written on!


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## onq (20 Mar 2010)

Something doesn't make sense here.
Could you have afforded the repayments for the additional loan amount within the landers parameters for borrower's?
If you cold have then I would like to know more, not least to advise the Financial Darwinists on AAM and elsewhere of what the financial institutions in this country are doing to existing potential borrowers.
This nonsense of them not lending money to borrowers who can repay has GOT to stop!

If you were able to pay more, there are other forums to which you can post on AMM.
If you feel you were unfairly refused the additional amount please let's get this information out there.
If you post elsewhere on AAM use a different wording with a different query so it won't be deleted for doubling posts.

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That having been said...

The first matter is paperwork - Contract and Certificates and Planning.
Unless your bedroom is wholly to the rear you cannot begin to claim that it is exempted development.
Even if it is to the rear, there may be other issues which mean you require permission for the new bedroom.
Also, your Conditions may say something like "the development to be carried out in accordance with the plans and particulars lodged".
If they do, you are obliged to finish the house substantially before you commence work on the foundations of the new bedroom - most people don't.

You appear to have had a good working relationship with your contractor.
If he understands your position and is paid to date, he may be willing to terminate the contract mutually.
He may also be willing to offer you a builder's certificate confirming that the work is in substantially compliance with the building regulations, as well as plumbers certs and the electricians cert.

What I don't understand is why the builder is leaving such an unfinished house.

ONQ.

[broken link removed]

All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.


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## Sconhome (20 Mar 2010)

There may be a background to this that we're not privy too.

I am presuming that you do have a contract in place with your builder. If the lines of communication at good then, I know he would prefer to hear about your troubles sooner rather than later.

If all the work to date is signed off and you are all happy to draw a line in the sand and conclude the contract then you are starting with a clean slate.

All to often the client doesn't tell the contractor and instead squeezes the last drop from the builder and tells him at the end: sorry, no money!

The first point of contact I would advise to continuing as a self build is to approach your contractor and ask what he would charge to advise you through to completion of the project; basically ask him for his plan of outstanding works and what you need to do to complete. Pay him for his time.

Failing that, and assuming there is no cash for professional engagement you need to get studying and read everything you can find on the technical side of construction. 

There will be a likely need to engage subcontractors directly, so you will have responsibilities under revenue compliance, health & safety as well as the building regulations, so get properly schooled. You are no linger the client, you will be the main contractor for the completion of the works.

Good luck!


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## onq (21 Mar 2010)

+1 There are a selection of Key Posts in this forum.

Click on the link at the top of the page "Sites, planning, self-builds and extensions" and you will see them.

There is a section in the Self-Build FAQ highlighting the responsibility of the self-builder under the Health, Safety and Welfare at Work Regulations that you should become familiar with, particularly the part that confirms that self-builders who employ people directly are acting as the Contractor.

You will need the appropriate insurances in place and you will have to vet people before you appoint them to ensure they are competent - this isn't optional or additional  - this is the law and has been for some time.

Your friendly contractor may advise you in this matter if you ask nicely.



ONQ.

[broken link removed]

All advice on AAM is remote from the situation and cannot be relied upon as a defence or support - in and of itself - should legal action be taken.
Competent legal and building professionals should be asked to advise in Real Life with rights to inspect and issue reports on the matters at hand.


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## hoppy (26 Mar 2010)

Sorry for taking so long to reply,firstly we have planning permission for the complete build including the extra bedroom,the builder is no walking away we just dont have the money for him to complete the build although we have kept him up todate with our situation.


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## onq (26 Mar 2010)

Well this just leaves me even more confused hoppy.

How is it that the rest of the house isn't finished?

IN other words, why didn't the builder complete under the original contract, i.e. the house minus the new bedroom?

Have you been putting in a lorryload of extras or something?

Something about this doesn't seem to make sense.

ONQ.


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## hoppy (26 Mar 2010)

ok  hope this clears it up we bought an old farmworkers cottage which was tiny 32 sqm and need a new roof and a waste treatment system ,we planned to add a 55 sqm extension initially consistin of a living area ,kitchen and cloakroom bathroom in theextension and turning the existing cottage into a bedroom withe a walk in wardrobe and ensuite we had the funds to pay for this! we then decided to make the building a story and a half and added the extra bedroom to the plans,these were submitted and planning granted in mid 2009 , we contacted the bank and told them we had improved on the plan and would need to borrow extra , we were told that as we were improving hand had not just gone over budget  the it would be a formality to borrow the extra so in january building commenced (the builder was aware when he started that we had enough funds to go so far with the build and that we would be borrowing more from the bank to complete. unfortunately the bank decidedthey werent foing to lend is the remainder to complete so thats where we are!


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## onq (28 Mar 2010)

Terrible, terrible result for you!

You, and others like you, must expose this kind of nonsense.

Get onto Pat Kenny, who is hugely annoyed about the whole "Banks not lending" scene and confirm your position.

The Banks and their lending policies are a disgrace, all mouth about sharing the pi none moment then "oh the central office disapproved your loan application " the next.

Not bloody good enough!

ONQ.


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## hoppy (29 Mar 2010)

decided to withdraw this post


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