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Restoration & Refurbishment

My builder has overspent and wants the money back?

Anonymous user 28/02/2024 - 3.17 PM

I had a full refurb of a 5 bedroom home done, and the builder along with his team has worked well and finished the project to a high standard. However, I have been presented with a list of "extras" totalling 8k - one invoice for installation of windows and doors and brickwork to an outside utility room (which i never requested) and another invoice just marked as "materials". I had a conversation with the builder before any works started and agreed a budget, to pay in weekly instalments and that any extras would be discussed and agreed before being carried out. For example we had one issue with the floorboards which he alerted me about and I paid the extra - I don't understand why the same process wasn't followed for these other "extras"?! I honestly don't now what to do and actually don't know were I stand. I don't want anyone to be out of pocket and I appreciate the high standard of work, but I didn't budget for this extra cost! Unfortunately the builder paid out of his own pocket and "needs the money back". Surely it can't be right that he can carry out work without discussing it with me, pay for materials, and then expect me to pay for this. We could then have made a decision as to go ahead with them or not but now it feels as it I have no choice!? Has anyone got any advice on where I stand legally?

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2 Answers

Building Restoration Specialist

Rating: 5 out of 5
Liskeard
Hi, You ask - "Where do I stand legally?" Ultimately, only a 'judge' will determine this, however, currently, it seems like this: 1. You are in contract with the Builder, be that verbal or written, for the agreed works and price. Contractually, the Builder has OFFERED to do the stated works for the CONSIDERATION (price), as ACCEPTED by both parties. I interpret your post as meaning there is NO written contract therefore, the detail is really a matter of one's word against the other, thus you are potentially, or nearly, in dispute. 2. Dispute - Firstly, disputes, and especially protracted legal disputes cost MONEY. Look up the case of http://www.cedr.com/library/edr_law/Burchell_v_Bullard.pdf For both of your sakes, such dispute will not be financially worth it!!! This takes courage to set aside principle etc, but it could be disastrous way beyond the disputed values - SEE ITEM 23 of the Burchell paper above. All of that warning aside, there are various forms of ALTERNATIVE DISPUTE RESOLUTION (ADR). Some are more litigious than others. MEDIATION is a typical one used, and possibly advised in a case like yours - SEE ITEM 41 of the Burchell paper above. There will be local RICS Surveyors to you, some of whom will be competent to consider ADR, impartially. Courts will steer parties towards ADR before hearing cases. 3. As it stands now - you can rightly and fairly demonstrate to the Builder that you and he agreed this and that etc, but not the other stuff he's added on. He will possibly argue that you have agreed the extras, or that you have implied they were agreed. An independent ADR person or Judge may consider to what extent you have allowed the extras to continue, ie, should you have stopped or challenged them? 4. Similarly, 'Letters of Intent' has been thrashed out in various authorities. Here, cases have explored to what extent an 'intent' to accept, agree, invite, approve etc has been offered, accepted etc. 5. Money - the argument about what should be paid for the works in various cases has been thrashed out also. 'Reasonable sums' (Quantum Meruit) have been determined in such cases, where applicable. These may be calculated on the Builder' typical rates, invoice values etc. But only usually where a dispute about the value of a work detail is in effect, NOT about the actual requirement or not for the work in the first place. CONCLUSION - - DO TRY TO AGREE with the Builder a fair and proper resolution. Personally, I would put whatever you can in writing. Make clear you did not request the works. If the Builder says he will remove all the goods he has installed then remind him he must also reinstate as found. - ADR, it is worth considering this if you simply cannot agree with the Builder. Certain forms of ADR are legally binding. - Court / litigation, should not be entered into lightly. I once read one Judge's comments saying something like, "be prepared to lose your home". I hope that helps. Thanks, Jason. MCIOB, MCABE. I AM NOT LEGALLY QUALIFIED. MY OPINIONS EXPRESSED ABOVE ARE PERSONAL, NON LEARNED VIEWS ONLY. I WOULD ALWAYS ADVISE THAT YOU SEEK PROFESSIONAL, COMPETENT ADVICE.
Answered21 November 2015
1

CMT Contractor Roofing & Building

Rating: 4.8 out of 5
Ellon
Realistically as there was no conversations with regards to the extra work undertaken as stated, no written quotation / agreement your not liable to pay, as it was not agreed. A costly mistake on his part. Best give him a call and discuss things, say you didn't budget for 8k of extra work and see what he says.
Answered21 November 2015
1