Does anyone have any knowledge of what what builders can get away with regard to walking away from a contract?

We signed a contract to have our new house built last December with a moving in date of this September. Seemed a little optimistic since they openly stated that since there were 2 clients in the queue before us and that they would not start digging until April. We thought it would be OK since this gave us about 4 months safety margin.

After weeks and weeks of chasing them, yesterday we were told that there could go ahead and start digging, but couldn't procede further until they had done the foundations for the now 6 clients ahead of us in the queue. We are gob smacked.

Call me paranoid, biut I'm beginning to suspect that since they have openly admitted that they are not going to make any money from us because they will "honour" the fixed price given in back December before all the contruction workers had a bad attack of greed, that they are hoping that we will give up and walk away (which we have no intention of doing). If we don't walk away, can they just renage on the contract?

The sad thing is that they have always appeared to be a good company to work with. Family run, building 12-20 houses per year. We've tried our best to be understanding because they have just "dropped foal" and might have been a little preoccupied, but just at this moment I want to kick someone (anyone) very hard.

Hi,

I think you should check the small print and refer to your lawyer for this one. We to are having a house built and I cant see anything in our contract that would allow them to pull out but I guess every contract is different.

What ever happens, good luck.

SAW 04

Good grief..... I feel your pain!

It sounds like the fun we've been having, only more so! Our house (which we should have moved into last week) is at last starting to take shape (only being decorated and new floors for Pete's sake, and they've had it since early Feb!). The guy says it WILL be done by this weekend, and we move (fingers crossed) on Monday.

That just leaves the basement. He's still saying it'll be ready for my parents to come visit in early September, but I'm not holding my breath! I have decided however that I am not actively pursuing other options at this time, as anyone we may find is unlikely to be any faster. These guys are good ..... and I want to hang on to them! .... If I can just stop him wandering off to start somebody else's job .........

If your contract is anything like ours your up the proverbial in a barbed wire canoe.

So yours can just walk away from the contract if they wish?

Not away from the contract but the finish date was\is still a moveable feast and there is sweet fanny we can do about it. :scared: :scared:

Have you paid any money upfront to them?. Are there stage payments?

A lawyer I once worked for said that contractors/builders take on loads of jobs at the same time and they do just enough work at each house so they don't get fired!

I think they have you by the short and curlies, because if you make them mad - they can bugger off and leave you in the lurch. They probably have enough work that they don't really need your money. If you hire a lawyer it will just be more of your money that you have to fork out - but I guess I would probably go and seek advice to see whether its worth pursuing.

If you don't complain - they don't do anything - and if you do complain - they do even less!

I don't think I will ever build a house!

Don't know about Canadian Law, but a Contract is a Contract.

Check what you have agreed with the builder regarding start and completion dates.

In writing your builder has contracted to carry out your works for X amount.

If they fail to honour the contract then you can seek legal redress including arranging for another company to carry out the works, and then sue the original company for the difference in price that you have had to pay to get the works completed.

If they are a reputable and well established company they will have a lot to lose.

A carefully worded letter from a legal authority outlining the details of the contract, what they agreed to do, for how much and by what date, and a threat that if they do not complete the works satisfactorily by said date, you will sue them for losses.
This should steer them back on course. I suggest that you do seek legal advice urgently to get the ball rolling.

Good luck.

http://www.mondaq.com/article.asp?ar...&lastestnews=1

article about performance bonds.

That sounds like it was written by a lawyer. It's good advice; for the lawyer.

A practical problem is that getting a lawyer to write such a letter will run something like five grand. Suing anyone costs ten of thousands so that's only an option if winning is more important than getting the house finished.
The builder will likely take note of the letter only to the extent of moving your job farther down the list of jobs. Getting to court will take a couple of years, or longer, during which time the house will sit as it is, potentially exposed to the elements. If eventually you get the builder to court, and haven't had to sell the house to pay the lawyer, he'll just flip his company leaving a bankrupt corporation with the bill.

Better to accept that, in building in Canada, manana is the operative concept. The house likely will get built one day.

We are having a house built in Calgary and when we signed the contract they made this big thing about not having a "set completion date". Its in the small print.

Exactly!!!

A contract is between two parties, both parties have to agree to the terms of the contract, this includes things like start and completion dates, this is common on all commercial building contracts, and most larger builders are aware of this, most builders will bully you into accepting second best, you don't have to do this.

Too often the layman tends to think that the application of law and the drafting of legal letters is complicated, it is not, you just have to make sure that you know your rights and the basics of contract law. It's not that difficult, but my apologies if I have simplified the case.

If a builder is insisting on not agreeing to a firm completion date, then the option is to walk way or agree a sliding scale of financial penalties.

I do accept however that the shortage of decent builders does mean that one is not always in the best negotiating position.

Out of interest.

Are you a qualified lawyer practicing in Alberta?