Taking Developer to Arbitration

  • Thread starter blackiegray
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blackiegray

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Hi, looking for some advice. I'm in the process of completing a house purchase - half already paid. However, some of the windows in the house are not installed as specified in the plans. The builder has admitted the error and sent revised plans but is not willing to do anything to fix the problem or offer compensation.

I believe the next step is to take this to an appointed arbitrar. But obviously this will cost in terms of hiring a barrister etc - as well as taking some time to complete.

Anyone undergone this process or have any advice on how best to proceed?

Many thanks in advance..
 
blackiegray said:
I'm in the process of completing a house purchase - half already paid. However, some of the windows in the house are not installed as specified in the plans.
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Surely this is a snagging/survey issue that the developer should put right before the sale closes?
I believe the next step is to take this to an appointed arbitrar.
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Where is this arbitration process outlined? In the purchase contract or elsewhere? What has your solicitor advised?
 
How serious is the issue? Is it worth (time and money) going to arbitration over?
 
Are the plans you received part of the contract?
Are there any statements along the lines of: "These drawings are mere representations. The contractor reserves the right to substitute..."?
 
Thanks for the replies.. The engineer believes the problem is quite serious.
Developer not willing to fix at snagging. And the right to arbitration is outlined in the purchase contract. The solicitor is recommending arbitration. Anyone any experience of it. Can it run up serious bills? The estimate is around 5k. I beleive plans are part of contract.
 
Check out The Chartered Institute Of Arbitrators Website www.arbitrators.org for some advice or Society of Chartered Surveyors www.scs.ie.

Arbitration is a very long costly process but not as expensive as litigation in hourly rate terms.

Is is extremely unusual for a private dwelling to be part of an arbitration proceeding. Your solicitor should be giving you more options and better advice because arbitration is always a last resort, make them earn the fee.

Maybe a credit off the value of the house if the builder has actually been in breech of contract, especially if there is none of the usual "the contractor reserves the right" B*llsh*t.
 
If this is not a self build which you are locked into then you should probably start thinking about pulling out and avoiding all this hassle and potential structural problems later on and looking elsewhere for a suitable property to buy.
 
antimonarch said:
Is is extremely unusual for a private dwelling to be part of an arbitration proceeding. Your solicitor should be giving you more options and better advice because arbitration is always a last resort, make them earn the fee.

Maybe a credit off the value of the house if the builder has actually been in breech of contract, especially if there is none of the usual "the contractor reserves the right" B*llsh*t.
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What can the solicitor do though? He writes to them saying we're not happy. They say they won't do anything about it. He writes again. They reply. Where does it end? We won't pull out because it's already cost us too much and the price has gone up since we signed.
 
Stage payments - interest paid
Solicitors fees, engineer etc.

There aren't structural issues more aesthetic.
 
blackiegray said:
There aren't structural issues more aesthetic.
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You wont be able to hold up the sale if its just aesthetic - at least thats my understanding. Check with your solicitor.
 
blackiegray said:
Stage payments - interest paid
Solicitors fees, engineer etc.
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It was never made clear that this was a self build.
There aren't structural issues more aesthetic.
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But you said earlier:
The engineer believes the problem is quite serious.
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If the issues are just aesthetic why does your engineer think that they are serious?
 
ClubMan said:
It was never made clear that this was a self build.
But you said earlier:
If the issues are just aesthetic why does your engineer think that they are serious?
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Hi clubman, Not a self-build. Stage payments with developer. Without getting into the specifics of it, the issues would not effect the structure of the house but would have an impact on access to light etc. I should probably have said the engineer indicated that it was a serious deviation from the plans.
 
A deviation is arbitration territory , pay off the rest of the house and withhold the cost of doing the windows right and as specified and replastering and redecorating around the replastering and costs of arbitration.

I hope it was specified clearly not left up to the developer to interpret otherwise :eek: . Did they get 'accepted' in a stage and paid for ??? . That would look bad for you .

Then arbitrate on that one issue alone , not the whole lot. Pay the rest like I said and take the house over.
 
Hey 2pack
That's interesting. THe solicitor hasn't mentioned that as a possibility.
Will look into it.
 
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