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Building Disputes

by Dispute Resolution Team

Building or improvement works to your home are disruptive at the best of times. Unfortunately sometimes the works are not completed as agreed and you may be left out of pocket with either an incomplete or substandard job.

These cases may involve faulty or defective building, construction or installation works such as bathroom/kitchen installations, shop fitting, defective conservatory builds, landscaping etc. Typically for our commercial clients there may also be an associated loss of business or revenue for which the at fault party may be liable.

Domestic Building Disputes Commercial Building Disputes

Domestic Building Dispute

Building or improvement works to your home are disruptive at the best of times, even in relation to small or simple projects. Most people are keen to have the work completed quickly and with a minimum of fuss. Unfortunately sometimes the works are not completed as agreed and you may be left out of pocket with either an incomplete or substandard job. Occasionally the builder will either demand more money to complete the work, or will simply leave the project.

Disputes often arise in relation to the quality of works, timings, exact specification and cost. It is important therefore to be clear with the contractor at the outset of any works exactly what you expect and what tolerances you may have in relation to the works. There are of course always times when unforeseen occurrences take place and some latitude may need to be given. There is however a great difference between the supplier not having your chosen taps in stock for two days and the contractor simply disappearing without comment for days on end.

Given the potential for dispute it is important that you and your contractor are clear from the outset as to what is required and why. Once a dispute arises people often complain that their contractor is uncommunicative or evade discussing difficult issues clearly. Conversely contractors complain that their clients do not understand the issues or that there is a difference of opinion as to what was said and what was meant by it. It is therefore sensible to draw up a written list of requirements and have the same agreed with the contractor before work starts. The same applies to any variations which are agreed during the works. If the contractor is unwilling to sign a written agreement as to the requirements you may want to reconsider your options. A cheap contractor with ambiguous terms of work may prove to be costly in the long run.

Who exactly is involved?

It is always a good idea to determine exactly who you are entering into the contract with. Many contractors work as sole traders or in partnership. These are very different from companies with regards to how you are able to go about making a claim against them and your chances of recovering any due sums upon conclusion. If the contractor is a partnership ask for the details of the other partners involved. Always ask whether or not the builders are insured for the works they are commencing and if so, who they are insured with. Ultimately one of the first matters your solicitor will want to resolve is whether or not your contractor has the means to satisfy your dispute in the first place. The sooner your solicitor can resolve that issue, the sooner you can receive the appropriate advice in relation to how to continue. When it comes to payment always make sure that you get a receipt and that you keep it safe. This is particularly important when paying in cash. Never rely upon the goodwill of the contractor you are entering into business with. Ensure that your agreement and payment are fully documented.

Talk to your builder

In the event that you have a dispute with your contractor the first thing you should do is have a full and frank discussion with them. It is surprising how often people turn first to their solicitors without fully explaining to their contractor exactly what the problems are. It can be quite difficult to have the conversation particularly if you are disappointed with the results and tempers become flared. You may find it useful to write down what has happened and what you would like as the resolution before entering into any such conversation with your contractors. In the event that the dispute cannot be resolved by talking calmly to each other, the list you have prepared will be useful to your solicitor in quickly identifying what the issues are and how you wish them to be rectified.

As a general rule you should provide the contractor with a reasonable opportunity to rectify the issues which you have raised. There are of course circumstances in which it would not be reasonable to wait, for example if your home is left in a dangerous condition and the contractor has simply walked out on the job. In such circumstances you may want to instruct a solicitor immediately to provide advice as to your available courses of action, to ensure that you are not later criticised in any claim that you make against the contractor.

If you and the contractor have parted ways it is often prudent to obtain a report from an independent surveyor to assess the level of work completed and what works are required. This is particularly relevant in large or expensive contracts with costly further works required. In cases where the cost of the surveyor is prohibitive in its own right, it is important to make a detailed note of all the works agreed and specify which have been completed satisfactorily and which remain to be completed or have been completed below the standard expected. If employing a new contractor to complete the works, it is again important to demonstrate that you have shopped around to find the most reasonable quote and to obtain an opinion from those builders as to any defective work.

There are a number of options available

There are a range of options available to resolve the dispute, including mediation and arbitration, commonly referred to in the legal community as "alternative dispute resolution". A mediator can act as an independent middle party to whom both you and the contractor will explain your relative positions. The mediator will try to reach a conclusion that works for both sides. This can be useful where the works have ceased as a result of the dispute and you are left with a part completed project.

Should the circumstances dictate that a resolution through mediation is unlikely, impossible or inappropriate then recourse through the courts is available. If the dispute has a value of greater than £50,000.00 or if the facts are particularly complicated, the matter would normally be heard by the Technology and Construction Court, which is a division of the High Court. If the value is less than £50,000.00 your local county court will have jurisdiction to hear and determine the matter. In simple cases with a value of less than £5,000.00 the small claims court is likely to be appropriate.

Commercial Disputes

Whilst the range of problems for domestic building disputes applies equally to commercial building disputes, there are often further considerations. Most notable of these further considerations are the knock on consequences of the dispute, which potentially could see the entire project grind to a halt. A lot of commercial building projects will involve more than one contractor and time will invariably be of the essence. A delay with one contractor whilst resolving a dispute, or indeed being the cause of the dispute in itself, could mean that you lose the window of availability with subsequent contractors, further delaying the project and potentially incurring further cost.

The use of alternative dispute resolution perhaps has a greater application in commercial disputes. Often the contract will have the facility for arbitration, mediation or adjudication built in. Adjudication can be a viable alternative in resolving disputes, at least long enough to get the project moving forward once more. Use of mediation or arbitration can often prove to be a cost-effective method of resolving the issues and will give the parties the opportunity to lay down the guidelines for the their future conduct whilst working together on the project.

In the event that the dispute cannot be resolved by alternative dispute resolution, or if such methods are deemed to be inappropriate in the circumstances then the matter can be resolved using the formal court process. It is more typical in commercial contracts that the value and or complexity will require the case to be heard by the Technology and Construction Court. As with domestic building disputes it is imperative that the contract be documented in writing, including any variations that take place during the works and that the parties are each clear as to what is required and expected of them by the other party. Effective communication can resolve many issues before they become a problem.

Please contact a member of the dispute resolution team on 0845 300 3574 and we will be happy to give you advice and guidance.

You can also contact us via our online contact form and we will respond quickly.

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