help ..... cowboy builder on the loose!

[BigKahuna]

My newly built house was just completed 1 month ago.
I paid the over the balance (90% on completion).
The builder's solicitor is holding the money in 'good faith' and he is refusing to accept the money and close the deal.
After the balance was paid over my solicitor received a letter demanding 25K for 'extras' to the house. The extras are things that are included in the contract bsut were supposedly improved upon, e.g. the contract simply states 'kitchen will be provided', but the builder claims that a more expensive kitchen was requested. He is claiming along the same lines for bathroom fittings, lights, windows etc.
The first I heard of extras was when I received this letter, but the builder is claiming that verbal agreements were made during the building of the house.
As it stands I am paying a mortgage on a house I do not own and the builder is holding me to ransom!
My solicitor is telling me that this could well goto court as it is his word against mine.
I'm in a real bind and don't know what to do ....... i don't have too much faith in my solicitor as he seems like he's a bit unsure on how to handle the whole thing. has anyone come across something like this or know what to do?

 

[MOB]

If normal procedures were followed, the plans and specifications formed part of your building agreement. When buying "off the plans" it is appropriate for the plans and specs to be attached to the contract. Where there is a showhouse, buyers are not buying "off the plans" but by reference to the sample of the completed product - though there still needs to be something in the building agreement in relation to the level of finish. It sounds as if your contract was a little vague in this key area.

Is this an estate house? If so, surely the "standard" spec. will be evident from other houses completed in the development. If your house is only finished to the same spec., then the builder wouldn't have much of a case.

There is no reason for you to be paying a mortgage on this house. If the builders solicitor is wrong, you should sue to force the builder to complete at the basic contract price. In the interim, your money can be returned to your solicitor, who will return it to your lender.

Of course, if you are wrong, you may lose the house (and your 10% deposit, and possibly more besides), so it is important to be absolutely sure of the facts.

It seems decidedly odd to me that a builder would claim €25k in extras if there was no justification for it. Is there any danger that you sought and agreed changes without perhaps realising that they would all cost money?

 

[BigKahuna]

Thanks for the reply MOB.

This is a once-off house being built by a small builder.The agreement was 10% on signing and the remainder on completion, so we do not own the site.

We asked that a number of items be included in the contract; a kitchen & fireplace would be provided, the area around the house pebbled and a few other small items also. You're correct about the contract being vague and it did not go into any detail other than stating what would be provided.The builder agreed and signed the contract.

We were not given any choice of kitchen,simply asked where hob/oven would be going etc. Kitchen was selected by the builder,same for the fireplace.
We were however given a choice of window colour but at the time there was no mention whatsoever of it costing any extra.If told so at the time, we would have declined.

Does he have the right to charge us for this without having notified us at the time?

The bank (permanent tsb) have agreed to accept the money back (90% of total cost) but in doing so said we'd have to cancel the mortgage and reapply.

I'll admit it does seem odd that a builder would ask for 25k for extras, and our solicitor has told us she hasn't dealt with a case like this before. But the builder sent a letter through his solicitor looking for 25k, without even providing an itemised list of what its for.

The auctioneer doing the final valuation for our lender told that the house is now worth at least 70k more than the price. The builder has brought this up in several conversations since then. Its his own tough crap he sold the house below value and now he's trying to screw us for some more money.

 

[asdfg]

Its his own tough crap he sold the house below value and now he's trying to screw us for some more money.

I agree with you.

As your solicitor hasn't dealt with a situation like this, how about employing an architect or quantity surveyor to give a view on costs situations like this. Get an estimate of their likely costs. Is there anything in the contract to resolve problems, how about going to arbitration (as a last resort - try to avoid as legal profession are winners here)

 

[Marie]

We asked that a number of items be included in the contract; a kitchen & fireplace would be provided, the area around the house pebbled and a few other small items also. You're correct about the contract being vague and it did not go into any detail other than stating what would be provided.The builder agreed and signed the contract.

Then these are the the items for which the builder is charging the additional amount! Perhaps before taking action without the full details you need to ask the builder for an itemised invoice for the additional amount.

I have personal experience of a situation akin to this. I contracted an established, reputable builder to knock down the old 'lean-to' bathroom on the back of my Victorian terrace house, replace with a new single-story bathroom and renovate the kitchen. We discussed everything (including the quality of the bathroom and kitchen fittings, finish etc.) and his labourers did the work. At completion the renovation was signed-off by the Council's Building Regulations Officer. The builder then presented me with an "additional invoice" amounting to approx 3K; they had unexpected difficulties as the soil was unstable and they had to shore it up whilst putting in foundations which had to be half-a-metre deeper than costed; he found the underfloor pipe carrying the gas-supply from the mains to require replacing (had not been costed in original contract); needed to fit a new stopcock as his workmen broke off the existing as it was too stiff to turn etc. etc.). I had paid his invoice in full even though he has taken 3 months to do the work instead of the 5 weeks he quoted and the final standard was poor. However I refused to pay the additional invoice . He took me to court. I lost - even though I had employed a Quantity Surveyor to formally confirm the whole contract was not up to scratch and was not worth any more than the original invoice. The builder had done work additional to that listed on the (written, formal) quote. I had to pay the thieving s**t AND the court costs..............and insult to injury, he claimed loss of income from his trade for the morning of the court attendance. The judge gave him that too, though not before glancing pointedly out the window at the pouring rain.

The fact is - the 'little jobs' are not 'little jobs' - they comprise the item/system itself, the labour AND THE VAT!!!

I wish you well with it.

 

[BigKahuna]

how about going to arbitration (as a last resort - try to avoid as legal profession are winners here)

Thanks for your replies.

To be honest, this is our first house and we don't know a whole lot about the legal side.
We weren't even aware there was an alternative to having our solicitor sort it out.

What is arbitration and how does it work?
If there is an unfavourable outcome, can it be appealed?

 

[asdfg]

You need to talk to a solicitor if you intend going down this route.

What is arbitration and how does it work?

This site may help explain www.arbitration.ie/ especially

The predominance of visible arbitration in recent years in Ireland has been especially reflected in the referral of disputes that arise in the construction arena and which might span any activity from house building to the design and commissioning of the largest of industrial process plants. The arbitration process has continually proven to be effective in dealing with disputes arising from complex issues of performance, cost over-runs, punch listing, design specifications etc

 

[BigKahuna]

Our solicitor sent a letter demanding the builder accept the money and close the deal by last Friday or we wanted the money back and would take the him to court for breach of contract.

Last Friday morning the deeds and closing contracts arrived at our solicitors office.

what an absolute chancer !

our solicitor sent a letter asking if they were still looking for the 25k and they said no. it just goes to show the neck that some ppl have.

we're just glad its over but we shouldn't have had to go through that.

thanks all for your input

 

[jhegarty]

Our solicitor sent a letter demanding the builder accept the money and close the deal by last Friday or we wanted the money back and would take the him to court for breach of contract.

Last Friday morning the deeds and closing contracts arrived at our solicitors office.

what an absolute chancer !

our solicitor sent a letter asking if they were still looking for the 25k and they said no. it just goes to show the neck that some ppl have.

we're just glad its over but we shouldn't have had to go through that.

thanks all for your input

well done on fighting the "rip off"... too many people roll over and get out the cheque book....