Owner-Builder Contract--Advice Please

Banana on 11/05/2016 - 23:01
Last edited 12/05/2016 - 08:49 by 1 other user

Hi guys, I will apologize in advance as I don't really know what to put down as the title to reflect my question.

My parents have gotten themselves in a sticky situation. They bought a land a year ago and 3 months later, a builder managed to sweet talk them into letting the builder to build the house while my parents registered as the owner-builder, employing him as the project manager. He pressured them to make a decision in a short time and unfortunately that meant a poorly written contract.

Throughout the whole building process he has not stopped emotionally and verbally black-mailing us as a whole family to make sure things go in his favour. He would threaten to run away if we do not comply. On a good day he would offer things on top of what was written on the initial contract, on a bad day ( like tonight), he would refuse to comply with things that were written down in the contract. Tonight, when asked about a certain item written down in the contract, he just snapped it at us. We think we have had enough of his attitude and are now seeking ways to terminate our relationship. He currently hold 100k and more of our money, with no physical work being done. He also has a lot of certificates for work that were carried out on the foundation of the house and has refused/avoided to give them to us.

I would like to know who I should contact to talk about this.

Regards,

A very distressed family

TLDR; Sneaky builder got parents to sign up as owner-builder, refusing to comply with contract, a scary and unreasonable person in general. 10/10 would not recommend.

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  nocure on 11/05/2016 - 23:12

  He currently hold 100k and more of our money, with no physical work being done.

  Why did he get 100k ? Payments should only be handed over in stages of completion.

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    Banana on 11/05/2016 - 23:16

    Wants 50k deposit for a part of the house he was working on (since freaking Easter), have not done anything but refuse to start the job until the full amount was given (another 50k). Now he is refusing to anything all together.

    He does not seem to has of his own money to go around in this project. Unfortunately the stage thing was something we overlooked initially. He refused to sign anything else after.

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  stewartedin on 12/05/2016 - 00:42

  From your previous posts I think your in Melbourne?

  Check out the Victorian Building Authority disputes page here:

  http://www.vba.vic.gov.au/disputes-and-resolutions

  also Vic Consumer Affairs here:

  https://www.consumer.vic.gov.au/housing-and-accommodation/bu…

  and

  http://www.buildingcentre.com.au/advice-inspections/building…

  and some background reading here:

  http://www.lsclawyers.com.au/elibrary/book1

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  Cheeper on 12/05/2016 - 01:20

  As Stewart advises above… PLUS… be very careful when dealing with tradesmen… very careful. If unsure on who to hire or the correct way to proceed get help or advice from people that know.

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  Geewhizz on 12/05/2016 - 06:54

  You need to seek legal advice straight away. You're being taken for a ride.

  Firstly, the reason behind onvincing them to register as owner builders and have him as 'project manager' was to get him out of any responsibility for rectifying any problems down the track. It just continues to go downhill from there.

  Does he actually have a builders licence?

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  Banana on 12/05/2016 - 07:04

  Thanks guy! I have removed my location so if he sees this he won't identify us, but obviously that has quite work! Thank you stewartedness, I will definitely check those links out!

  Xywolap, I know. After we get rid of him the next question might be "Help, how do I stop my ex-builder to come and damage the house" etc. Funny each dad is a tradesman himself but he has never attempted to con,bully or deceive his clients. But you see this is how my current builder keeps stepping over him.

  Geewhizz, we are too far down the project now. Honestly if he wasn't causing all this dramas and abusing us once a week, we would have been happy to keep building with him, despite being 100k over the agreed amount. Also like what I said to Xywolap, we are also afraid of what he might be later down the track.
  To be honest we even considered bikies ha-ha.

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  JimB on 12/05/2016 - 09:40

  If you're not in VIC, my advice may be incorrect. I've Owner Built a house before so know the process/paperwork required fairly well.

  I'd speak to the VBA and the building surveyor who has been appointed to inspect/sign off on the building. They should be able to supply copies of all documents submitted.

  You state 'no physical work being done. He also has a lot of certificates for work that were carried out on the foundation of the house and has refused/avoided to give them to us'.

  Which is it- no work done or foundation/slab been done?

  Don't worry about him damaging the house, that is what insurance is for.

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  Banana on 12/05/2016 - 12:13

  100k was for a part of the house ( I don't want to say it in case he could identify it) we have closed up the house already (physical structures are all done)

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  JimB on 13/05/2016 - 11:45

  They bought a land a year ago and 3 months later, a builder managed to sweet talk them into letting the builder to build the house

  with no physical work being done. He also has a lot of certificates for work that were carried out on the foundation of the house

  we have closed up the house already (physical structures are all done

  I suggest you see a lawyer, but ensure that your side of the story is consistent.