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Main Contractor witholding £100,000

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ladyapprentice

Having worked with a main contractor for the last 18 months we were excited to be starting a couple of large projects - 53 bedroom student accommodation and a 21 bedroom student accommodation along with a few other smaller jobs. The main contractor was always a bit slow paying and would get quite irate if I emailed asking for invoices to be paid to enable us to buy more materials and pay the workforce. He requested my partner, head engineer, asked.

Anyway, we were working our socks off over the summer and had to put up with threats of non payment and fines if we did not complete. We were confident we would but stress levels were high. My partner used to go to main contractor asking for payments in order to buy further materials - abit like a child asking dad for pocket money.(I regularly invoiced the company and so payments should have been flowing but for the last 3 months we have only been getting money on account so I do not know which invoices they relate to so cannot see what vat we have been paid or confirmation they have paid cis). We would get small amounts and really struggle getting required materials. Despite this we got them and had extra labour to help with the project.

We used to supply and install all materials until the contractor decided he could get things cheaper (and much lesser quality) so he provided sanitaryware for these projects. Shower enclosures were particularly poor quality and main contractor being on site everyday saw them from day one. Halfway through project he asked us not to fit any more of the poor quality ones and he would get replacements. An hour later he changed his mind and said carry on with the initial enclosures and if the clients wants them changing later then he would charge him.

Last week we had men on the 21 bedroom project who were sorting the water booster pump and would have completed that day. A day ahead of schedule. My partner was on another of the contractors jobs due to complete that day (again a day ahead of schedule) when he received a call from the main cointractor saying he wanted all the enclosure taken out and replaced the next day. My partner advised him it would be cheaper to get his men to do it rather than pay us plumbers wages. The main contractor then said he was not intending to pay to get them changed anyway and it was our responsibility to tell him they were poor quality. My partner said we would not change them free of charge only to be told if we didn't we would not get a penny. Moments later my partner was suspended from site as were our other men at the other site, therefore we were not able to complete the jobs.

We were emailed by the main contractor asking why work was not complete. Silly question seeing as though we had been thrown off site. We said if 80% of what was owed to us was paid we would return and complete all jobs. We didn't get it. The main contractor asked for a meeting after I had sent numerous emails asking that we set aside differences and just get these jobs sorted. He only wanted to meet my partner, I suspect because he knew he could manipulate and bully him, I said I would attend as would the site manager but this was not good enough. We have sent in final bills and desperately need the money to pay our suppliers.

Through the grapevine we have heard that other plumbers have been in to try to finish our work. What I need to know :-

Am I correct thinking that all of our guarantees and warranties are now void following other plumbers working on our system (we did tell the main contractor this would be the case)
If we did not sign anything agreeing to fines due to delays can the contractor charge us £10,000 every day the jobs ran over schedule as he had threatened numerous times. Incidently they would have all been complete had we not be asked to leave the site.
Should we sit patiently and wait for a letter explaining the situation which the contractopr has promised? Or should we start legal proceedings now?

I am concerned he will put ridiculous fines against our invoices to try to justify non payment.

Horrible situation to be in. Think he intended all along to screw us over and tried numerous obstacles to do so. The free labour to change enclosures was the last straw.

Any advice greatfully received
 
pay him a visit with your work force , that would be me . but most will no doubt be saying go get legal advice now before her folds up and moves on
 
Would love to take workforce and request payment, in fact I've dreamt about it :59: Bit of a gangster contractor I believe so reckon legal route is best bet.
 
Great at the start (£££££££) but these things always have an habit of biting your backside, the reason they have the money is they have the power.
Pity your situation and I hope you get paid.
 
get advice but i belive it is possable to apply to put this company in to bankruptcy and freeze there bank accounts because of nonpayment of invoices i have herd of very small firms do this to very large firms over very small amounts as they thought they could get away with not paying for months on end i will try and find more info if i can
 
get to court fast before they pull the chain.

send down a protest party to site and get signs for the vans so everyone else knows they are non payers.
then cut your losses.
 
Thanks, sounds positive. I don't know why he can't just pay up and we go our separate ways. We did a fantastic job, client is over the moon with it. It's just the contractor who has spoilt the whole thing. He would've made money out if the job anyway without holding onto ours! Huh! Some people eh! Any further info would be great, cheers
 
How much have you got in writing in relation to the above?

Did you write to him offering to complete the work?

I think you need to get some legal advice and get something in writing to him asap.

If it ends up in the County Court you will need to show that you took all reasonable steps to resolve matters before resorting to legal proceedings, and written evidence to show this is what you need to be able to produce.

Making proposals for early resolution is the way to go, avoid making threats that you can't carry out - don't get drawn into tit-for-tat behaviour.

Probably best to negotiate through a solicitor from this point on.
 
Yes we have written evidence we wanted to resolve this and complete works. I could understand if we were charging the earth but he got more out of us than we charged. I shall get my paper trail together in preparation. Even if we just get enough to pay our suppliers and the lads who worked so hard I'd be happy.
 
Yes we have written evidence we wanted to resolve this and complete works. I could understand if we were charging the earth but he got more out of us than we charged. I shall get my paper trail together in preparation. Even if we just get enough to pay our suppliers and the lads who worked so hard I'd be happy.

This might make you wince, but have you thought of offering a discount for payment by a deadline?

Say X number of pounds for 10% discount if paid within 7 days?

If there are accountants involved they may go for that - I know it sucks, but if it gets you some money and keeps you afloat it might be seen as worth it.
 
A sad and frustrating situation to be in. Jobs this size should really be done on a written contract preferably a JCT.
 
I would be happy to offer a reduction just to get it all sorted. Got a feeling he is already writing his contra charges for non completion etc. I asked numerous times for written confirmation of quote, works etc but as the job was on such a tight schedule he never had time for a meeting. I even worked on my birthday til 12:40am just to get ahead. My partner didn't get a day off over the 8 week project and was lucky to be home before 11pm every night. So much effort and commitment just for this man to screw us at the end! Grrrr. Lessons learnt though, once bitten and all that.
 
I once worked for a company who got took for around £50000-£70000 eventually they pulled off site and the builder tried to charge them for not completing the work the long and the short of it is if they dont pay on time they are in breach of contract so they have scuppered any chance of charging you and for asking you to leave site that also is their choice and as long as you have that in writing you will have a good case.

Are all the other contractors in the same position or is it just yourselves ( Turns out my old bosses were owed the least on the whole site)

Unfortunately I think the only way forward from here is the legal route I would try to avoid the bankruptcy route.
 
I would be happy to offer a reduction just to get it all sorted. Got a feeling he is already writing his contra charges for non completion etc. I asked numerous times for written confirmation of quote, works etc but as the job was on such a tight schedule he never had time for a meeting. I even worked on my birthday til 12:40am just to get ahead. My partner didn't get a day off over the 8 week project and was lucky to be home before 11pm every night. So much effort and commitment just for this man to screw us at the end! Grrrr. Lessons learnt though, once bitten and all that.

How about sending a written proposal asking for X number of pounds with a 10% discount to be paid within 7 days on the basis that once paid you will complete the work, and when completed another £X at 10% should be paid? Warranties to stand on the work done by you (not on other people's work of course)

Send it recorded delivery, and if he rejects or ignores it you will have something to show at Court, should it get to that.

Get it in before he has chance to drop anything on you.
 
Are all the other contractors in the same position or is it just yourselves ( Turns out my old bosses were owed the least on the whole site)


As far as I know it's just us at the moment although the main contractor did tell us he was sacking 50 of his men when job was done. He's also fallen out with his own site manager and has said he is not paying him. Very ruthless man.

some great advice all round, thank you. I shall keep you informed.
 
The best route is a legal route, the most satisfying however would be to get two 'gorillas' to grab a leg each and hang him upside down off of a 20 storey building until the brown stuff is dripping off his head.
 
If I were you then I would be off to the lawyers first thing and get the contractor company's assets frozen due to non-payment.
 
If you do a letter don't forget to mention why your people have not been there for the last few days, i.e. he sent them off site (write it so that it represents a record of events)

Check out with a solicitor before making any threats, (a) feasibility and (b) the cost of such action - you don't want to say or do anything that might undermine your position.

Email asap if possible, and follow through with a recorded delivery letter.

Don't forget the cyber mafia are here if you need any more advice! :smile:
 
With all respect to the nice people on here - you need proper legal advice, not well meaning suggestions from an internet forum. No doubt there will be more than a few on here that have been in similar situations, but no two will be exactly the same. In law, little differences matter.

Get all the paperwork together and get to a lawyer.

If you can possibly manage it, lock your emotions away in a mental box. I know this is really worrying, and thats understandable, but this is a business problem, and you will need a clear head to get through it.
 
Great advice from peter and ray. I would think it's all about speed and getting things moving asap.
 
Sorry - one more point.

This isn't a job for the family solicitor who did the conveyancing for your house, or drew up grannies will. If you don't know a good contract dispute lawyer, try the law society website - they will help you locate a lawyer in your area which specialised in this field.

Ray
 
Hi, I am really sorry for your troubles, hope it is sorted.

I went to court recently and it all went down to paperwork

1. do you have a contract?
2. if so does it say that he will pay you on time and if you are late he will charge a fee per day for non completion on time?
3. do you have any emails or paperwork to the equilavent as above?
4. offering a solution will not help your case in any way. although the judge will say to him "why have you not paid him?" to the contractor and he will come out with every excuse in the book, the judge will then turn around and say "this still does not make sense, why have you not paid him?"
5. if you have all the paperwork and it is all in your favour, you can actually charge interest on the amounts that are unpiad, lose of work and court fees off the contractor.

do what you can at this hard time to pay the lads, suppliers i.e. and take him to court asap as said before, he will get the judgement against him, even if he doesnt turn up to court.
 
oh and forgot to say,

dont think it has been covered but the guarantees/ warranties all depend on your contracts i.e. if it states that you have to offer a guarantee even if the contract is cancelled then you must, if it says nothing then you have no obligation.
 
Hi, I am really sorry for your troubles, hope it is sorted.

I went to court recently and it all went down to paperwork

1. do you have a contract?
2. if so does it say that he will pay you on time and if you are late he will charge a fee per day for non completion on time?
3. do you have any emails or paperwork to the equilavent as above?
4. offering a solution will not help your case in any way. although the judge will say to him "why have you not paid him?" to the contractor and he will come out with every excuse in the book, the judge will then turn around and say "this still does not make sense, why have you not paid him?"
5. if you have all the paperwork and it is all in your favour, you can actually charge interest on the amounts that are unpiad, lose of work and court fees off the contractor.

do what you can at this hard time to pay the lads, suppliers i.e. and take him to court asap as said before, he will get the judgement against him, even if he doesnt turn up to court.

Contract law is quite involved - a contract doesn't have to be in writing, it can be made verbally, and in some circumstances it can be assumed. Obviously if the contact isn't in writing then the issue of proving its existence arises. The best way is to have everything clearly defined in writing. But then no doubt this guy knows that too, and may have been astute enough to skew things in his favour, but then a good solicitor might say otherwise. When people are talking about big money and promising work its all too easy to miss the in's and out's of the T&Cs.

I very much agree with Ray regarding the need for ladyapprentice to avoid letting her emotional responses get in the way of sorting this matter out. The going rate for a solicitor starts at around £200 per hour, and they can run up a bill of thousands in no time at all.

If it were me, I would think hard about getting the job back on track so that he has no excuse for paying up.

Then once the cheque is cleared, tell him what a *%^*$£"^?//&*%%*** he is!
 
people like this make me sick! really gets my back up. one bell end's decisions could cost two blokes their company and numerous workers their houses just because he thinks hes a bit of a gangsta! it is so hard not to make it personal. even im getting angry and i have no involvement.
I really hope the courts see it your way and take this bloke to the cleaners however i fear he may already be expecting this and has geared himself up to be made bankrupt. might be worth doing some leg work yourself with company's house etc and see if he has done it before as the courts may deal with him differently.
as others have said you definitely need a good solicitor for this sort of money. i wish you all the best in this and please keep us up dated.
 
Ho the joy of working for builders, never known one yet who wont stich someone up, trying to get paid will take forever ! & you still have to find the money to pay your supplyers ! how long do you think they will put off being paid ??
 
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