How to sue a builder who fails to complete work

It is one of the most common issues property lawyers are presented with: you have paid a builder to undertake work on your home, and several months down the line, the work is not completed, and the builder is not answering your calls. What can you do in this difficult and distressing situation to protect your legal rights?

Do you have a contract with your builder?

If you are in a dispute with a builder, your first port of call should be to check the terms of the contract you have with them. In an ideal world, you will have a contract in writing with your builder, which sets out the work that they have agreed to do for you, when the building work will be completed, and what you have agreed to pay to them. If you do have a written contract with your builder, it should also include terms about the circumstances in which the contract can be terminated, and what happens if payments to the builder are late.

If you don't have a written contract with your builder, you will still have a legally binding contract with them. However, if there is a dispute about the scope of the work, the deadline for completion or the value of the work, it will be more difficult to resolve any issues. 

Before paying any money to a builder, or allowing any work to start, you should therefore consider putting a written contract in place with your builder, so that both parties to have peace of mind.

What if the builder has not completed their work?

There can be several reasons why builders and home owners fall out, and why a builder may have failed to complete the work they agreed to carry out on your property, for example:

• the builder has discovered issues at the property which mean the work which was planned originally cannot be carried out;
• the home owner has not kept up to date with payments to the builder;
• the scope of the work to be carried out has changed, and the builder is worried they may not get paid for the extras;
• the home owner is not happy with the quality of the builders' work and has asked them to stop; or
• the builder may have simply left the site to go to another job.

It is important to identify as quickly as possible whether it is the builder or the home owner who is in breach of what was agreed. If there are documents (such as a written contract or invoices) which can help clarify the situation, that will be very helpful. The parties should also check any emails, text messages or other communications, to see if a resolution can be reached. 

You should take photographs of the work at various stages, keep all payment receipts for money sent, and retain all documents which evidence the agreement between you, even if you are not in dispute at the outset. 

What if a builder is in breach of contract?

There are several steps which you should go through to try to resolve an issue with a builder. 

Step 1: Putting mistakes right 

If a builder has breached the terms of a written or verbal contract with you, unless your relationship has broken down with them entirely, it is usually a good idea to give them an opportunity to put matters right. You should write to them listing the specific issues or unfinished tasks, allowing a reasonable deadline for the work to be completed.

If the builder still does not complete the work, or if you remain unsatisfied with their work, you will need to consider moving to the next stage. 

Step 2: Getting the work finished

As a home owner, it will be a priority for you to get the work on your home finished. If you have fallen out with your builder, you will need to instruct another builder to finish off. When you instruct a new builder, you should get them to prepare a report in writing, setting out details of the work which the original builder carried out, and any mistakes they made. 

If the builder has caused serious issues or damage to the property, you will need to consider the next stage.

Step 3: Getting a structural survey

If the builder has caused significant problems with your property (for example, taking out structural walls, or carrying out work which doesn't comply with Building Regulations) you will need to instruct a surveyor to prepare a detailed report, setting out the issues with the property and any work which will be required to put it right. 

If the structural survey reveals serious issues with the building work, you will need to consider taking legal action against the builder for compensation, and to recover your losses.

Step 4: Mediation

If your builder has caused you financial loss, it is always worth considering mediating the dispute before you take the builder to court. We can help you engage the services of a suitable mediator, if you are unable to find someone yourself. 

Step 5: Suing a builder for compensation

You can sue a builder for compensation, if you have suffered financial loss as a result of their poor work. You can make a financial claim against your builder for:

• money you have paid to them if the work they carried out had no value at all;
• the difference between what you were due to pay your builder, and the fees you had to pay another builder to put their work right;
• the cost of any extra work you have had to carry out at your property, to put right mistakes by the builder;
• any fees you had to pay a surveyor or other expert to prepare a report; 
• interest on any money that you are claiming from the builder; and
• legal costs.

Any legal claim against your builder needs to be brought within six years of the date they breached their contract with you. 

Can you withhold payment from a builder?

If a builder has failed to meet their obligations, you can withhold payment from them, for example, if the builder has not done the agreed work to a proper standard, has not completed what was agreed, or has caused other issues at your property. If you withhold payment, the builder may be unlikely to carry out any further work for you, but if you have to engage another builder to put right any mistakes, we understand that you will need to pay your new builder from your funds.

If you are considering withholding payment from your builder, it is a good idea to seek advice from a lawyer to check whether you could be sued by the builder for non payment of their invoices. 

Draft a contract for building work

If you are a builder or a home owner, it is a good idea to record in writing what is agreed between you. Both sides will be protected in the event of a dispute and any problems should be much easier to resolve. 

If you need legal help to draft a contract with a builder, one of our expert lawyers will be able to help you.  

Get legal help to resolve issues with builders

At Samuels Solicitors LLP we have been helping home owners and builders resolve their disputes for many years. If you need legal help to bring a claim against a builder, we will be able to give you the advice you need. 

If you wish to speak to a specialist property lawyer about your building dispute, or if you wish to speak to us about drafting a contract for your building business, contact us today.