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 THANKS for the very quick reply.... Below are my responses to the additional questions...
1) Water Heater temperature is set at normal and when filling the tub, no cold water has been used. Today, I have to fill it with HOT until there is no more hot water available then let the water heater regenerate hot water. I have a 7 year old and will not turn the water heater hotter beyond "normal". Proving statements by salesperson? Nope, I can't do that. I have nothing in writing. Only when my wife and I were picking options is when sales person told us not to worry about the larger heater (which would have been $500.00 more which I would have paid).
2) I have no recoreds on daily temperature but I'm sure I could find them on the internet if I really needed them.
3) Fit for purpose... Is there more I can read on this for construction in Illinois?
Not sure what you mean by allowing 5 - 10 percent of the cost of the house for repairs. The house cost 400K.
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Followup To
Question -
Hi. I purchased a new home in August from a well known contactor in the area. They have good response but there are some issues that are really bugging me.
1 - We purchaased an upgraded Bathtub and the water heater isn't big enough to support it. During the initial pre-construction purchase, when discussing upgrades, he sales woman said we didn't need a larger water header based on the number of people in the home. However, after we moved in and found we ran out of hot water when filling the tub, I contacted the bathtub manufacturer who said we should have at least a 75 gallon water heater based on the size of our 100 gallon tub. Builder won't budge and original saleswoman no longer around. Do I have any recourse?
2 - Furnance appears to be too small for house. I'm in middle of researching this too (using BTU, efficiency and square footage of home). I'm assuming I'll run into same problem as above. Do I have any recourse?
3 - Basement has had many leaks since August 2004 when we moved in (it's now Feb 2005). Builder has repaired all leaks and they guarantee them for 5 years. I'm ok with their response but I'm concerned about more leaks and know the builder will take care of them but how do I determine what is / is not excessive? I'd like to finish my basement.
4 - During initial pre-construction purchase, saleswoman told us that we would be on lake michigan water (I'm near chicago). We found out shortly after we moved in that we were on well water. In addition, Radium was found in the water. We've purchased a water softener and Reverse Osmosis system for about $1,700.00. Builder won't budge. Do we have any recourse?
Your reply is greatly appreciated.
Answer -
Hi Mike,
It all depends on the terms and conditions included in your contract of purchase, especially if the house was not custom built.
1. The water heater has to be fit for purpose. I guess if you do not have enough hot water to fill it, then it is not fit for purpose, but then it depends on the water temperature and how much cold water you add. Have you tried setting the controls so that the water is hotter? Of course you would have to be careful not to scald anyone. Can you prove the statements made by the sales person? Generally, the builder is responsible for his salespeople and for the comments made by them, but it depends on the exact contract between them.
2. As to the furnace, the same answer applies. However, this problem could be more complicated because it could be the distribution system, the thermal insulation or the draught proofing which the cause of any dissatisfaction. Have you kept a daily record of internal temperatures in all rooms, external temperatures, sun hours and power/fuel consumption? Remember some rooms are designed to be cooler than others. Also you have to have meteorological records for at least 10 years to prove that the weather was not abnormal.
3. Again fitness for purpose. Depending on the locality and the intended use of the basement, I would not expect there to be any leaks, although some dampness might be acceptable.
4. I have no knowledge of radium and its effect on water or the need for remedial measures. It would depend on the local statutory building codes.
I suggest that you have had better than normal service from the builder, especially as you are satisfied with his action in repairing leaks in the basement. Generally, I allow between 5% and 10% of the cost of new building for correcting or amending any features of the project which were incorrectly or inadequately specified at the start.
I would recommend that you calculate the cost of chasing the builder, including mental stress, and the possible gain. Then choose to enjoy your new home and get on with your life. But the decision is yours.
Answer Hi Mike,
1. It looks as if you will have to upgrade your water heater or fill the bath partially. You might get the builder on fit for purpose, but honestly I would not bother. Just pay for the replacement and write it off against experience.
2. You need records of the internal temperatures as well and then eliminate other causes of discomfort.
3. Fit for purpose - do an internet search or talk to your better business bureau
The 5 -10% is not for repairs. You have had your leaks repaired. It is for items which were not specified accurately or for afterthoughts. No one can think of everything and everyone makes mistakes. I know that this is probably your most expensive purchase to date and you want it to be perfect. You are emotionally involved. Look at the situation objectively. So the house cost 400K. Was it good value for money or overpriced junk? If it was good value for money, then accept you got a bargain and don't hassle the builder. If it was overpriced junk, then kick yourself and don't make the same mistake next time. You want to enjoy your life, without being stressed out over minor items. Look at the words in the intro to my site.
