What do i need to watch out for when signing a building works contract?
My brother owns a building construction, and the people who have signed a contract with him, to pay a certain amount every month, have decided not enough work has been done, and have stopped paying? Either though they have both agreed a timescale of six months for completetion?
Answers:
These are called stage payments and should be timed to be paid at certain stages of the construction. For example one when the foundations had been laid and the slab completed. The next when the outer shell is complete and the roof secure. Then when all first fix carpentry and electrics and plumbing etc are complete and lastly when all finishing work is complete such as ceilings, walls, doors on and handles etc. On a monthly payment system I would expect a reasonable amount of work to be done so if I was not happy I to would withhold payment until I was assured that the work was on schedule.
He should stop working for them. If they don't pay, sue them.
The way this is usually managed is that the people who are having the building work done have the work which has been carried out valued by a building professional at the end of every month. This professional signs a certificate to confirm the value of the work and the builder issues an invoice to that value.
It looks as if someone has valued the work doen at less than the expected monthly payment and your brother will have to negotiate with them.
was it a standard form of contract or one that was made up between the two of them. It is understood in construction contracts that work be done to a fair standard and at a fair pace, if this is not done i.e. if your brother wasnt doing a fair amount of work per day the contract may be breached, check all clauses to the contract
first of all, if they have signed an authorized contract to pay so much money on whatever dates. then they stop paying, that is illegal. but, there are loopholes to contracts... the best solution would probably be to talk to an attorney, or at least someone who knows law really really well. and alot of attorneys will give you free advice.
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