Builder ceased trading before completing extension

[HerrMaker]

Hi all, I wonder if anyone can advise me.

 

I appointed a builder to complete an extension and the company ceased trading shortly before xmas as the main man walked away from the business - leaving his junior(ish) partner to deal with everything.

 

I have paid 80% of the agreed price. The remaining partner in the business said he was starting his own company, and said it would cost me a similar amount to complete.

 

I have paid substantial amounts by credit card and so have made a claim under section 75 for the whole amount I paid.

 

The builders have done some of the work they said they would, but this no way reflects 80% of the total job.

 

Does anyone have any precedent cases that I could use to get a speedy resolution? If not, how long do I leave it before chasing the credit card company for a refund?

 

The initial response from the credit card company is that I am not automatically entitled to a refund under section 75.

[Conniff]

It is correct that refunds aren't automatic, they have to get the other side of the story or there is a great risk of fraud. How much is a substantial amount ? You can't claim back the full amount, there has to be a reduction at least for the materials that have been used to date.

[HerrMaker]

what happens if the credit card company cannot get in touch with the builder that ceased trading?

 

I'm happy for any adjustments to be made for work done, and I'll be satisfied if I get enough back to enable another builder to complete the work within the original agreed price.

[Conniff]

It depends on if it was a one man band or a properly registered company. Did it have 'LTD' after the name?

[HerrMaker]

no it didnt have ltd after the name.

 

I've just checked companies house and the company is not listed on their web check site. However, they are a member of the federation of master builders.

[Conniff]

no it didnt have ltd after the name.

 

I've just checked companies house and the company is not listed on their web check site. However, they are a member of the federation of master builders.

 

They claim to be members - email them and check. FMB Online - Federation of Master Builders

[HerrMaker]

I've used the FMB website to verify that they are members, but they only have basic membership - they only need to be VAT registered and have 12month trading history.

 

I didnt realised the flimsy "price of entry" for FMB, as I gave the job to these builders thinking I had some form of comfort as they were part of FMB.

[buzby]

Your CC may be 'clever' in treating the individual payments to the card as seperate amounts, as split-payments are invariably excluded from Section 75, even if the amounts of each payment are within the claim 'window. A friend was told he had to nominate ONE of his payments for refund, as they would not be aggregated. If a SINGLE payment for the work had been made, it WOULD have been covered.

[GuidoT]

If the firm is not limited, then the partners (owners) are personally liable to complete the works or your losses arising.

 

Although they have, they cannot lawfully just walk away from the works they have contracted to undertake.

 

You need to write to the individual(s) that represented the contractor and advise them that they need to complete the works, if they do not advise them that you will instruct another contractor to undertake the works and then seek the additional costs arising from them, as they are personally liable.

 

If they do not complete the works and you have to instruct others, then advise your original contractor of your losses in writing and then if they do not pay, then commence legal proceedings against all the individuals as joint defendants.

 

You should make some enquiries as to whether the individuals would be good for the money, e.g. check at the land registry to see if they own their house.

[buzby]

You may also wish to consider that their reasons for going out of business may not have anything to do with YOUR particular job, and their indebitedness cause by something you are unaware of. This means there will be other preferential creditors well ahead of any claim you may wish to make, and any court action you take can be easily sidestepped by going bankrupt - and you lose even more money.

 

Whilst he may be shown in the Land Registry as (owner) it will also show the name of the firm that holds the mortgage, and whilst the figures are not shown, you will have no indication as to the equity available, and your place in the queue for a slice of it.

 

Since you can also factor in it may me a marital home with children, the house can often be off-limits, leaving only vehicles (probably leased) and equioment (exempt).

 

You may have to bite the bullet on this one, unfortunately.

[HerrMaker]

I've heard that the original builder is soon to be bankrupt.

 

Does anyone know of a case where the Credit card company were held laible in such a case?

[buzby]

As mentioned in Msg # 8, they have been - but NOT for multiple payments.