Jump to content


Fixed price agreement - can you please help?


Ananda
 Share

style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 4079 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Recommended Posts

My son and his young family agreed a fixed price with a developer to have a house converted (the developer employs the builders on a contract basis). During the conversion it became necessary to knock walls down and rebuild them. This has obviously cost the developer money which he is now trying to recover from my son before the house is finished - what should we do?

Link to post
Share on other sites

Hi, thank you for responding. I believe my son has a schedule of work together with the final price.

But it does not include anything regarding 'extra work' the old house was surveyed and wall/foundation problem not picked up, so the developer went ahead on that basis. Makes me think that his beef should be with the surveyor(?)

 

Thanks again.

Link to post
Share on other sites

I am in the building trade, and have come accross this many times before.

 

The problem here is that before any extra work is carried out there should be paperwork with an agreed price. If its in writing, there is no problem.

The builder has had to do extra work (which is not his fault) and wants paying for the work. I suppose the only lever he has is not to do anything else till he gets paid for what he has done already. If he has done the work, and its to a good standard he should be paid.

Hindsight is a wonderful thing, but always get everything down in writing.

Additionally, the surveyor might not be at fault either. I have surveyed buildings before, and sometimes the faults are not readily apparent till work is begun. I have fitted windows only to find the lintel has failed and needs replacement. Surveyors are generally quite good, but they don't have crystal balls.

 

IMO if the work needed doing, then it will need to be paid for.

  • Haha 1

 

 

HSBC WON three times!!!!! Read about my continuing battle (claim FOUR!) Link HERE

Capital One WON Link

HERE

GE capital (5 accounts) WON link HERE

Lloyds bank account WON second claim starting! link HERE

Budget insurance cough up WON link HERE

Principles WON link HERE

A&L (Mrs Crusher's account) claim link HERE

Barclays claim link HERE

 

Any advice given is on an informal basis only and without prejudice or liability. In in any doubt, consult a qualified lawyer.

IF YOU HAVE GOT YOUR MONEY BACK, PUT SOME BACK INTO THE SITE TO HELP KEEP IT OPEN!

Link to post
Share on other sites

Thanks for taking the time to help.

But, surely the point is that the developer 'agreed a fixed price' based on the budget available and maybe he should have known better?

Although he kept them posted, at no time was extra payment for extra work mentioned by the developer.

 

Thanks again.

Edited by Ananda
Link to post
Share on other sites

The developer agreed a fixed price for the work given in the original schedule.

He has now done more work than this, and therefore needs paying.

 

Surely the extra works would have been agreed (even verbally) before they were begun?

 

has the developer paid the builder?

 

did the builder do the extra work at the request of the client, or the developer?

Edited by HSBCrusher

 

 

HSBC WON three times!!!!! Read about my continuing battle (claim FOUR!) Link HERE

Capital One WON Link

HERE

GE capital (5 accounts) WON link HERE

Lloyds bank account WON second claim starting! link HERE

Budget insurance cough up WON link HERE

Principles WON link HERE

A&L (Mrs Crusher's account) claim link HERE

Barclays claim link HERE

 

Any advice given is on an informal basis only and without prejudice or liability. In in any doubt, consult a qualified lawyer.

IF YOU HAVE GOT YOUR MONEY BACK, PUT SOME BACK INTO THE SITE TO HELP KEEP IT OPEN!

Link to post
Share on other sites

Hi, Nope, the subject of extra payment was never mentioned - the developer has paid the builder (?)

The extra work was carried out at the direction of the developer - without discussion or hint of extra payment with my son.

When my sons wife said 'I bet you are sorry your started this' he replied to the effect' my fault for not being more careful' (I paraphrase).

We have reason to believe that the developer has tried to get recompense from the surveyor and failed, so is now trying the next in the line.

Edited by Ananda
Link to post
Share on other sites

did your son agree to the extra work?

was he led to believe it would be free of charge?

Edited by HSBCrusher

 

 

HSBC WON three times!!!!! Read about my continuing battle (claim FOUR!) Link HERE

Capital One WON Link

HERE

GE capital (5 accounts) WON link HERE

Lloyds bank account WON second claim starting! link HERE

Budget insurance cough up WON link HERE

Principles WON link HERE

A&L (Mrs Crusher's account) claim link HERE

Barclays claim link HERE

 

Any advice given is on an informal basis only and without prejudice or liability. In in any doubt, consult a qualified lawyer.

IF YOU HAVE GOT YOUR MONEY BACK, PUT SOME BACK INTO THE SITE TO HELP KEEP IT OPEN!

Link to post
Share on other sites

The subject did not come up, other than general moans from developer.

My son was not even asked to agree to extra charges, and therefore by omission was led to believe costs were going to be met by the developer.

Edited by Ananda
Link to post
Share on other sites

at what stage is the building? Is it "liveable"?

 

 

HSBC WON three times!!!!! Read about my continuing battle (claim FOUR!) Link HERE

Capital One WON Link

HERE

GE capital (5 accounts) WON link HERE

Lloyds bank account WON second claim starting! link HERE

Budget insurance cough up WON link HERE

Principles WON link HERE

A&L (Mrs Crusher's account) claim link HERE

Barclays claim link HERE

 

Any advice given is on an informal basis only and without prejudice or liability. In in any doubt, consult a qualified lawyer.

IF YOU HAVE GOT YOUR MONEY BACK, PUT SOME BACK INTO THE SITE TO HELP KEEP IT OPEN!

Link to post
Share on other sites

Hi there, yes just liveable but no kitchen, tiling needs doing and other bits and pieces.

I have seen the signed agreement and there is a price 'total cost' no mention of 'extra charges'.

Link to post
Share on other sites

with a building project converting an existing old building like this there is no such thing as a fixed price, there are always extras that come along.

however, these must be agreed and any extra charges should be down in writing.

 

So, what options does leave us?

 

1. your son can get the work finished himself, it doesnt look like there is a lot left to do. The developer might come chasing your son in the courts, but he will not have anything in writing, so this will make things difficult for him.

2. your son pays for the additional work, and the builder finishes the work.

3. come to some negotiated agreement with the developer, after all the work has been done.

4. your son gets solicitors and courts involved, and to be honest, who knows where that would end (although its certain the solicitors would do well out of it)

 

I have seen this before, it can get very messy indeed. Personally I would go for some sort of negotiated solution.

 

just my opinion of course.

 

 

HSBC WON three times!!!!! Read about my continuing battle (claim FOUR!) Link HERE

Capital One WON Link

HERE

GE capital (5 accounts) WON link HERE

Lloyds bank account WON second claim starting! link HERE

Budget insurance cough up WON link HERE

Principles WON link HERE

A&L (Mrs Crusher's account) claim link HERE

Barclays claim link HERE

 

Any advice given is on an informal basis only and without prejudice or liability. In in any doubt, consult a qualified lawyer.

IF YOU HAVE GOT YOUR MONEY BACK, PUT SOME BACK INTO THE SITE TO HELP KEEP IT OPEN!

Link to post
Share on other sites

I appreciate your help and thank you.

The latest seems to be that unable to get the money the developer wants, my son has told him not to finish the job and keep the money instead.

My son will then get the work finished himself.

Link to post
Share on other sites

I'm really sorry this hasnt worked out better for your son, Its not ideal, but I think this is probably the best outcome.

 

Just a tip: if he needs to save money on the kitchen, buy cheaper carcasses and spend the money on the worktops, doors and taps etc.

Edited by HSBCrusher

 

 

HSBC WON three times!!!!! Read about my continuing battle (claim FOUR!) Link HERE

Capital One WON Link

HERE

GE capital (5 accounts) WON link HERE

Lloyds bank account WON second claim starting! link HERE

Budget insurance cough up WON link HERE

Principles WON link HERE

A&L (Mrs Crusher's account) claim link HERE

Barclays claim link HERE

 

Any advice given is on an informal basis only and without prejudice or liability. In in any doubt, consult a qualified lawyer.

IF YOU HAVE GOT YOUR MONEY BACK, PUT SOME BACK INTO THE SITE TO HELP KEEP IT OPEN!

Link to post
Share on other sites

you are welcome:-D

 

please do.

 

 

HSBC WON three times!!!!! Read about my continuing battle (claim FOUR!) Link HERE

Capital One WON Link

HERE

GE capital (5 accounts) WON link HERE

Lloyds bank account WON second claim starting! link HERE

Budget insurance cough up WON link HERE

Principles WON link HERE

A&L (Mrs Crusher's account) claim link HERE

Barclays claim link HERE

 

Any advice given is on an informal basis only and without prejudice or liability. In in any doubt, consult a qualified lawyer.

IF YOU HAVE GOT YOUR MONEY BACK, PUT SOME BACK INTO THE SITE TO HELP KEEP IT OPEN!

Link to post
Share on other sites

Hi HSBCrusher, may I ask for your advise as regards the best strategy regarding a letter to the developer.

It has been suggested that we take the initiative by writing an amicable letter outlining what we were led to expect and what we have received and monies paid to date.

Possible, we should outline how we would like the matter to end and place a time limit of maybe seven days in which we would like to know his intentions. If no reply is received we will take it that no more work is being undertaken and our relationship is at end - what do you think? Many thanks.

Link to post
Share on other sites

As was suggested before, it is all down to what exactly was agreed, so if it is not yet clear what was agreed, a letter to outline an understanding of the facts of the matter would serve to clarify the issue, and if the developer fails to respond it would be fair to construe that as a consent to the version presented.

 

It sounds like the developer made a mess of it all by failing to inform in good time, but you need to beware that the developer's version of it may not be quite the same as your own impression.

 

I wonder if the builders could throw some light on the subject. If they only ever dealt with the developer, with no knowledge of a need to look elsewhere for money to come, that's a large part of the story accounted for.

 

:???:

Link to post
Share on other sites

I really appreciate all the sensible help provided on this forum.

The developers version may, obviously, vary, but he has nothing in writing with signatures which can show that extra charges were notified or agreed - they were not.

Once again, thanks for helping.

Link to post
Share on other sites

 Share

  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?


×
×
  • Create New...