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 What options do i have against my builder for breaking his contract with me. In his own hand writing he documented an item that i wanted and agreed to have installed in the new home. When the time came he stated that we only had a certain amount of dollars that we could spend.? I paid for the correct item out of my pocket and i feel he owes me. To me this is breach of contract.. Next question the lending bank for the construction loan allowed the builder to make the last draw eventhough the contstruction loan states that both parties must be present before this can take place? ( by the way they are working partners). The builder promised to purchase our current home if it did not sell, and insisted we get the construction loan in our name, which we did and he stated he would pay the intrest notes and he did until April then he told us he could no longer pay them. Now I am out a months intrest payment and the loan matures on 5/21/05 and i will have to extend for 90 days to hope that i can salvage some of what we have worked so hard for and hopefully sell one of the 2 houses. He wanted us to use his realtor in the beginning in which i did, but this past october i fired him and attempted to hire a new realtor. While the new guy was out taking pictures the contractor verbally attacked the new realtor and called me at work and attacked me. Therefore for months i was terrified that if i bucked him he would stop making the intrest payments. He knew from the beginning we could not afford to pay the intrest payments and our current mortg. Since i feel he and the bank broke their contract with me is there anything i can do to keep from having to file bankruptcy? or having them take the few assets we do have ? Or even leave us without
a place to live. We have worked hard for our credit scores and the things we have and i feel it is unfair that they (contractor & bank) are allowed to get away with this. When i call the bank all the manager can say is well rent one...how much sense does that make.
please offer some advice or direction that i can take to hopefully head this dead horse off at the pass.
thanks in advance,
D.bridgmon
Answer Hi Debbie,
Moving home is one of the most stressful events in life, and building a new one at the same time only doubles the stress.
I am not sure that I understand your situation correctly. It would appear that you signed a construction contract which had an allowance for customer specified items, and that this allowance was inadequate to pay for a specific item that you wanted. Did the Contractor agree to supply and fit the item without extra cost, or merely agree to supply and fit the item, without mentioning the extra cost? Do you have evidence in writing that he agreed to supply and fit it without extra cost? It might be difficult to prove breach of contract in this case.
It would seem that the bank has neglected to fulfil its duty of care by allowing the Contractor to drawdown the last part of the loan. In this situation you should seek the advice of your local financial regulatory body to clarify the situation. There may be a local requirement for a clear separation between financier and builder.
Do you have written evidence of the Contractor's promise to pay the interest on the construction loan and buy your current property if it remained unsold? If not, how do you prove it in a court of law? As he has made several payments, the Contractor appears to have established that he did agree to pay the interest, but he might claim that it was only until the building was completed, or for a limited period. If the Contractor agreed to buy your property, what price was agreed; fair market, his estimate?
I suggest that you need proper detailed advice on this subject. You could contact your local better business bureau or citizen's advice bureau or equivalent for a free consultation. Then contact a local lawyer for a fixed fee advice. Look up the effects of a 'mechanic's lien' on the internet in case the Contractor issues one on your current or new property. If all else fails, contact your local press and get them to warn others of your situation. Contact other buyers and see if they have the same experience. Be sure to prepare your evidence and case well, so that the reporter has an easy time writing his article. Pick a headline or hook for him to use for his article. If you make it easy for him, he is more likely to write the article. It may not resolve your problem, but the press can be very effective in this situation and businesses would rather settle than get bad press.
I hope that you manage to resolve your problems and keep your home.
