Builder has breached contract - do I need to pay final 5%?

Question

We had an extension built which was completed almost 12 months ago. Under the terms of the contract, which we signed but the builder did not ask us to return, the builder should have carried out a defects inspection 3 months after completion and we would pay the last 5% of the bill when all defects had been rectified. We delayed our final payment (before the last 5%) as there were several items not completed, e.g. relaying floors which had been lifted. When the last items of work were done, the builders made such a mess that we didn't pay for some of the work by agreement.

We called the builder a month after completion as water was leaking from the join between the new building & our garage below. He didn't return our calls & we had to fix the leak ourselves. He didn't contact us to arrange the defects inspection and has not put right any of the faults which have appeared. Now he has sent a bill for the final 5%. Do we have to pay this? Can I pay 50% as full & final settlement?

Answer 1

I wouldn't even offer him 50% of the last 5%.  He failed to carry out the inspection and therefore breached his side of the contract.  

You owe him nothing.

Answer 2

Take photos of all the defects. get an estimate of cost to finish the repairs.

Write to him with your findings asking him to finish the work. As per your written agreement. Then let him take you to court. He wont.

Then you go to the small claims court and file for the value of goods and/or services offered but not delivered.

Answer 3

he sounds like a bit of a cowboy. I very much doubt he will take matters further if you refuse to pay because of the damage to his reputation it would cause. Write him a letter explaining that he has breached your agreement and so the price you agreed with him is no longer valid meaning you wont be paying the final 5 %. After that it will go one of two ways - either he will suddenly contact you to finish the work or you will never hear from him again

Answer 4

small claims court   time ??

Answer 5

If what you say is true, I wouldn't give him anything. You had an agreement with him,he didn't stick to it. Keep your money.

Answer 6

Unfortunately it may be time for legal representation, The Builder will hit you with a small claims CRT injunction. I hope you made notes, taken photos of the concerns and the defects. Ideally it would be better if you both agreed to the result of the complaints but the faith and trust between each other has passed by now. Be prepared for a slogging match unless you both settle out of CRT. Good luck.

Answer 7

If the work isn't done to an acceptable standard, don't pay.

Answer 8

If what you say is true and you have documented these defects, documented your efforts, calls and letters to allow this contractor to repair the defects and he has not performed per the contract, then, no you don't have to pay the final 5%

He's going to place a lien on your property and then you will have to go to court to determine who owes whom what.

You can offer him a settlement for non-performance, if you just want the problem to go away, but make sure you get your agreement in writing and a lien release for all of his work.  

Demand that he supply Lien releases from his sub-contractors and from his suppliers before settling this bill.  If he hasn't paid his workers, sub-contractors or his suppliers, you will be responsible for those costs also, even if you have already paid HIM for the work.  

Consult a lawyer if you are unsure of which way to go on this.

Answer 9

Not untill he has completed the work to your satisfaction

Unless he's a big fu*ker