Do I Need a Lawyer to Cancel My Building Contract with My Exisiting Builder or Any Other Options to Do It - Please Help

Lordarainyday on 04/07/2024 - 15:12

Greetings everyone,

I trust that all of you are well and in good spirits.

I am seeking assistance with a challenging situation I am currently facing. I have been dealing with a Builder for the construction of a single -storey house in Victoria for almost 3 years, and unfortunately, the work has not been completed. I have made payments for the fixing stage, but no progress has been made. I am considering terminating the contract and hiring a different builder to finish the remaining work.

I have consulted with a few lawyers, and they have quoted a significant amount, ranging from $3,000 to $5,000, to terminate the contract by giving notice of 14 days to the builder. This has put me in a difficult financial position, and I am exploring alternative options to resolve this matter without involving a lawyer.

If anyone has been in a similar situation and has successfully canceled a contract without the need for legal representation, I would greatly appreciate any advice or guidance you can provide. Thank you in advance for your help

General Discussion

Comments

  • Taro Milk Tea on 04/07/2024 - 15:15
    +1

    who is the builder?

    • Lordarainyday on 04/07/2024 - 15:33

      He is one of those Dodgy Builder - Unfortunately cannot name and shame the builder right now

      • oscargamer on 04/07/2024 - 15:33

        Is it a standard form of contract?

      • Taro Milk Tea on 04/07/2024 - 15:35
        +1

        Ok, your only option now is to call bikies then.

  • oscargamer on 04/07/2024 - 15:19
    +9

    Read your contract. There will be a section/s about how to terminate and the repercussions of terminating.

    $3 - $5k is not much to do it right.

    If you terminate the contract incorrectly, you could be up for additional charges…..Just saying

  • Jake D on 04/07/2024 - 15:49
    +2

    $3-5k is surely less than you have lost/ will continue to lose in holding costs if you stay in this contract with no house.

    Also, be very sure you have a builder lined up to complete the works. Not many like taking on someone else's imcomplete projects.

  • Drakesy on 04/07/2024 - 15:56
    +4

    NGL very few, in fact almost no one will take on a half-built house and the ones that will, well, lets say prepare for an absolute reaming and no offer of any warranty. (I wouldn't warranty some random's work).

    Generally as soon as the slab goes down the builder has you by the kahunas. I've seen slabs ripped up along with all the underlying services because the new builder didn't want to inheret any potential problems with the previous builder's work. Thinking the shoddy pipes that have been getting installed and failing at an alarming rate.

  • spackbace on 04/07/2024 - 16:08
    +7

    https://www.ozbargain.com.au/node/831350

    Kinda thinking you really need to seek out advice which isn't this forum

    You renegged on a block of land, now you're renegging on a build?

    • Dollar General on 04/07/2024 - 16:19
      +3

      Think OP needs to stop rushing into decisions and instead seek advice beforehand

    • SBOB on 04/07/2024 - 16:59
      +2

      Life would be much simpler if it wasnt for those pesky signatures on contracts

    • Muzeeb on 04/07/2024 - 19:31
      +1

      For a Valentine's Day post it's not showing a lot of love.

    • Lordarainyday on 05/07/2024 - 10:57
      -1

      The whole idea was getting the house built on time in order for us to use equity to build a new house and use it as investment or sell -unfortunatly losing money on both

      • Drakesy on 06/07/2024 - 12:34

        Maybe choose another investment path

  • PrinceOfWhales on 04/07/2024 - 16:09
    +2

    What is the practical completion date? What does the termination clauses say? Are you entitled to liquidated damage and is it a reasonable sum? Assuming the contract is on your side, is the builder solvent enough for you to recover your losses/entitlement ?

    If you are struggling to answer to the above, just pay the lawyer, you will need it.

    • Lordarainyday on 05/07/2024 - 10:59

      The completion of the house was one year from signing the contract - unfortunately its nearly 3 years plus and hopefully get it completed in the next few months from the new builder

  • Seraphin7 on 04/07/2024 - 16:17
    +1

    I would certainly advise getting legal advice on the matter.

    Anyone can "cancel a contract" … it's whether or not you actually have grounds to do so based on the intersection of the circumstances and the terms of the contract. Based on the probability the builder is not just going to "walk away", you'll likely need a lawyer in that circumstance … so best to get them involved before you do anything, lest you do something now that prejudices your options later.

  • DGrayson82 on 04/07/2024 - 16:35
    +2

    I cant really give you any advice except its extremely difficult to find a builder that will take on a half-built house. We had 3 Porter Davis houses being built in our area and after 16 months (or however long its been since their collapse) only one of the homes is near completion. And the owners of that house (which is a small double storey) had to pay quite a bit on on top of whatever their original Porter Davis contracted price was to the new builders

  • brad1-8tsi on 04/07/2024 - 16:55
    +2

    get some perspective. $5k in a $200k-$250k (??) build isn't a lot to get the project moving again.

    Is there any reason you haven't been to mediation or contacted the state overseer of building & construction?

    If the contract was fixed price then be prepared for a shock on what the new quotes will be

  • CyberMurning on 04/07/2024 - 18:46
    +1

    You still have a house to build and cant afford $5k for lawyer… really

  • Lordarainyday on 05/07/2024 - 10:55

    Hi Team,

    Thank you for your Valuable Inputs on this matter - Have a found a builder to take over the project - and will commence with the lawyer shortly and terminate the contract - :-(

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