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 We are having a new home built in Ohio, Erie County. We hired the contractor and he started work in August 2002. It is now September 2003, and all we have is the basic shell. No plumbing, electrical, water, drywall, roof, exterior, nothing!!! He has received $140,000 so far from the bank and who knows what he did with the money. Maybe it was spent on his family's 3 week vacation in Florida. (wife & 5 kids), or maybe on the brand new trailer he bought, or perhaps the brand new $36,000 truck he just bought. It was not spent on the material for the house. The bank is now threatening us with foreclosure as he has not completed it within the 1 year time frame that they allow. What can we do?
Answer Hi Marsha,
I am surprised that you allowed him to withdraw the so much from the bank, with no guarantee. You must be a very trusting soul. You do not say what is the total amount of the Contract, nor how big the house is. That sum may be very reasonable considering all circumstances. I cannot say on the information which you have provided. The solution will depend on the exact wording of your written contract with the builder and the total sum involved. I presume that you do have a written contract. Was the one year time limit stated in his contract, in which case he could be in breach of contract, and liable to pay damages. Check whether he owns the trailer and truck, or if it is leased, or in his cousin's name. In latter case, you have little chance of reclaiming money through sale of goods.
Have you discussed the situation with the builder? Did he make any promises? Have you got written notes of all meetings and telephone calls? Have you discussed the situation with your bank and asked their advice on how to solve the problem? The builder may be a client of the bank? Did you get banker's references, or any kind of reference before you signed the Contract?
You need professional legal advice for this problem. However, be sure that the builder can repay both the outstanding sum, or finish the work, and your lawyer's fees. Otherwise you will lose more money. I suggest that you put all the facts in writing and asked for a fixed fee review of the legal situation and advice (and costs) of possible course of action. Do not start talking to a lawyer without fixing the limit of his fees.
