Sam Bawden, construction solicitor, gives advice on how to deal with a dispute with a builder.
As a Construction Law solicitor, I regularly advise both employers and main (or sub) contractors in relation to high value construction disputes across Essex, Suffolk and the South East. Generally, the parties to those disputes tend to have both:
The combined effect of this is that the building dispute (whatever it happens to be) can usually be resolved more rapidly than it might otherwise be. That means less headaches for the parties, less distraction from the main business of building things and, perhaps most importantly, less cost to the parties.
However, when it comes to domestic building disputes, the situation is often less clear…
Consider a typical example. A private homeowner engages a local builder to complete an extension and/or conversion works to an existing residential property. Perhaps it is even a bespoke one-off new build project.
Very often, the domestic employer provides the builder with little more than the architect’s drawings, to which the domestic builder prepares a simple quote. The quote may be as little as a single side of A4 with some abbreviated descriptions of what he will do for the sum quoted. Often there will be no standard terms and conditions set out, or referred to, in the quote. The domestic employer accepts the quote and the builder starts work.
Then come the inevitable instructions to vary the scope of the works and the resulting cost consequences.
It is not at all uncommon for things to start going wrong at this point. Typically, the homeowner starts to feel that the works should have been completed earlier and to a higher standard. He therefore does not want to pay the full contract sum. The builder feels that the works have necessarily taken longer, because their scope has been varied, and that he should be paid more than the original contract sum because of all the extras that have been included. In this typical circumstance, it is easy to see how a dispute between the employer and the builder develops.
Who is right and who is wrong in any such dispute will depend on the facts.
Central to resolving the dispute will be identifying exactly what the parties’ original rights and obligations were, and then identifying the extent to which they have since been varied. The relevant question to start with is what was the builder required to do, by when and for what price? One must then look at whether he has achieved that and, if not, what, if anything, is he entitled to be paid? The problem is that without a detailed written contract in place, these can be difficult questions to answer. That difficulty becomes compounded where there have been agreements to vary the exact specification of the works, which have either been oral or, at best, made by way of a series of often short and somewhat ambiguous emails (both of which are extremely common). It is therefore not surprising that there can often be misunderstandings between the parties.
In order to seek to avoid disputes with your builder and the need to sue your builder (or at least to ensure that resolving any dispute with them is easier if they do arise), both builders and their employers are advised to seek legal advice before contracting with each other. In the event that a building dispute does arise, the typical value of domestic building disputes often means that the cost of resolving the dispute, if not handled correctly, can easily become disproportionate. It is therefore advisable to seek professional legal advice from a specialist Construction Law solicitor at an early stage so that a cost-effective and pragmatic solution can be identified.
If you and your builder are unable to resolve the dispute of your own accord, and there is money or works outstanding, or both, the situation and relationship can deteriorate quickly. It is important at this stage not to act impulsively, making comments or taking actions that may antagonise the other side. It would be wise to seek advice from a specialist solicitor who can give you guidance on the contract that is in place (whatever its form), your rights and the best course of action to take with the aim of resolving the building dispute. It is often in each party’s interest to avoid you needing to sue your builder and take them to court, as it is at this stage that legal costs may become disproportionate for both parties, although this does depend on the value of the building works commissioned.
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