AboutPeter M. Elliott Expertise First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only.
Experience Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit.
George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')
Question Thank you so much, that helps. I have to ask what should I do about warranties they were supposed to provide.
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Followup To
Question -
I live in CA, USA. I have a contract to replace windows and install new sliding doors.
Contractor left and didn't finish the job.He didn't provide warranty for labor and material. He was supposed to do it according to the contract. After 2 month he is asking for the final payment and I got a letter from Credit Bureau.
I tried to reason with him with no results.
What should I do next?
Answer -
The first thing is 'Do not panic'.
You do not state the location nor the applicable law nor the form of contract, so the following advice, as always, will be general in nature. Although it is not clear from your query, I presume that you are the client or employer and not a subcontractor to the main contractor.
If the Contractor has not finished the work, then you should list the unfinished work and send him a letter with the list, giving him a reasonable period, 7-28 days dependant on the amount of work, to complete the Contract. If he does not finish the work then, get three quotes, choose the most economically advantageous and tell him that you will sue him for the difference.
Depending on the location and method of payment, the lender may be liable if the Contractor does not complete his work, or may have to reduce their charges. In UK, credit card companies are liable in some circumstances, if a supplier defaults on a contract and the invoice has been paid by credit card; likewise with some finance or credit companies. I suggest that you contact the Credit Bureau and ask their advice. However, tread with care, as some credit bureaux like to play hardball.
As always be objective and confirm everything in writing (including telephone conversations and missed meetings).
If I have misunderstood anything, then please come back with a supplementary question.
Answer Hi Ella,
It depends a bit on what the warranties do. Are they a confirmation that materials and workmanship meet a specific quality? Are they guarantees that defects will be repaired? If they are guarantees, are they backed up by an insurance company, or merely based on the contractor's honesty? If they are based merely on the contractor's honesty, then their effectioeness could be doubtful, but they would be useful in a court case.
What is the value of the warranties? If they have teeth and can achieve their intended purpose, then the value is probably about 10% of the contract value. I suggest that you write to the contractor stating that you value the warranties at 10% of the contract value, on the basis that a performance bond of 10% is common in construction contracts, and that you intend to delay payment of that sum until you receive the warranties. It is important that you do not refuse payment, merely that you are delaying payment until the work is complete.
He may disagree with the amount or just supply the warranties. If he disagrees, then ask him to give a mathematical basis for his disagreement. The calculation should be based on the costs of repairs, or remedial works, to other contracts over a period of years, or details of his insurance premiums.
Remember the aim is a completed work with the minimum of fuss. Be objective and calm and keep written records of everthing.
I hope that the above is effective and that you gt your doors and windows finished.
