Help my builder’s gone bust

If your builder has gone bust, you are not the first person this has happened to

We are sure this won’t make you feel any better

But it is an unfortunate fact that building firms go bust all the time

Several years ago Carillion with twenty thousand employees and an annual turnover of several billion went bust

But it doesn’t matter if your builder is nowhere as big as Carillion. If he has gone bust it can have a devastating effect on your project

What can you do if your builder goes bust?

The first thing to do is assess the impact it is going to have on you

There are several legal avenues you can pursue to try and reclaim money from him

But first of all you have to work out how to complete your project. This means you will have to work out how much is left to finish

If you have had close involvement with the project and are knowledgeable about construction, you may be able to do this yourself

Who else could help?

If not it may be worth employing a Quantity Surveyor (QS)

A QS will be able to inspect the project and work out what is left to do and what it will cost

The next thing will be to get several builders to come and have a look and give a price to finish the job

Whatever you do it is never a good position to be in

What can you do to protect yourself before a project starts?

Before a project starts there are various things you can do to protect yourself in case this happens

There are 3 stages of a construction project

The first one is the preconstruction stage

This is where you do all your planning

You should give careful thought as to how you choose your builder

Also give careful thought regarding which contract you choose

How can you protect yourself financially?

There should be clear stages when you release payment to your builder

You should only pay for work that has been done

That way if he does go bust you will still have money left to finish the job

A lot of people ask should I give my builder money up front?

Well that’s for you to decide, but what happens to your money if he goes bust?

Some building firms make it a condition of them taking the job that you pay them something up front as a holding deposit. And they are perfectly entitled to do so

Some people choose to pay for expensive items such as kitchens themselves. They think that means the materials belong to them. There is a common misconception that anything installed by the builder belongs to him. But that’s not correct. Anything installed on your project belongs to you even if you haven’t paid for it yet

Due dilligence on a builder before a project starts

You should always do your due diligence on a builder before signing a contract with him

And you should always check he has the correct insurances in place before starting work

Many people are just looking for a cheap builder. So when they get a cheap quote they like they skip the due diligence. That is never advisable

When hiring a builder a cheap quote can be as bad as a high one

Property development can be a lucrative enterprise

But it can and does go wrong

Many people have lost a lot of money having a go at it

Our experience

During our extensive careers, the partners at Evbi Projects have seen many projects go wrong, sometimes disastrously

We have all worked on projects where builders have gone bust

And we have seen property developers lose everything. Including their own homes

If you are reading this we hope it’s just out of general interest

And we hope you are not reading it because your builder has gone bust

 

We offer a wide range of services

Contact us for a free no obligation 20 minute chat to see how we can help you with your project

 

 

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