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I was advised verbally by my builder recently that he has placed…

Customer Question

I was advised verbally by...

I was advised verbally by my builder recently that he has placed his company under voluntary administration. (nothing has come forth in writing)
I have a Standard HIA Contract with his company to construct a house, the completion of which has been delayed for more than 8 weeks now.

My question is, in light of the liquidation process and the delay by his company to complete the house, can I terminate the contract by giving them 3 to 4 weeks notice and complete the project through another builder ? ( I am confident I can finish the project through another builder, with the amount owing to this builder)

What rights do I have as a consumer, when the builder is in Voluntary Administration ?

In the light of the Liquidation process, am I obligated to complete the house through the insurer using the Home Indemnity Insurance.

Submitted: 13 years ago.Category: Australia Law

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9/2/2009

Solicitor: Maurice, Lawyer replied 13 years ago

Maurice, Lawyer

Category: Australia Law

Satisfied Customers: 2,764

Experience: Lawyer (Juris Doctor, MBA IntBus) with 25 years Australian Business Experience at Your Service

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HelloCustomer

Do you owe this builder any money for the work completed to date?

Customer reply replied 13 years ago

I have paid all invoices presented to me, to date

Solicitor: Maurice, Lawyer replied 13 years ago

Thanks for that additional information

The short answer is that your rights as the customer under the HIA contract will remain unchanged whether it is with the builder or the impending receiver who will step in and spend the next 60 days compiling a report to all customers and creditors

That means if you have the right to terminate the contract due to the delays and you choose to exercise that riThanks for that additional information

The short answer is that your rights as the customer under the HIA contract will remain unchanged whether it is with the builder or the impending receiver who will step in and spend the next 60 days compiling a report to all customers and creditors

That means if you have the right to terminate the contract due to the delays and you choose to exercise that right pursuant to the specific terms of the contract than you are free to do so.

If you wish to keep the contract on foot than no doubt in time the receiver will , depending on whether it is viable to keep trading the building company to complete the contracts (by selling the company or the contracts) offer you the choices available to you to continue with them or if unviable, for the insurer to step in to com ght pursuant to the specific terms of the contract than you are free to do so.

If you wish to keep the contract on foot than no doubt in time the receiver will , depending on whether it is viable to keep trading the building company to complete the contracts (by selling the company or the contracts) offer you the choices available to you to continue with them or if unviable, for the insurer to step in to complete or to release you altogether to complete

I know you stated that you have paid all invoices presented to you however you will still owe the builder for any work that they have completed but not presented an invoice for

I trust this information is of assistance and that you will kindly accept my answer as I wish you the best in this matter

regards

Maurice

Customer reply replied 13 years ago

If i choose to terminate the contract pursuant to the conditions of the contract, would i still be liable to pay the unpresented invoices, when they are presented ?

I would be happy to settle what i would owe them at the completion of the project, after deducting for all loses and additional costs as a consequence of the delay. Is that legally acceptable ??

Solicitor: Maurice, Lawyer replied 13 years ago

Yes, you would still be liable to pay the unpresented invoices, the receiver will make sure of that if you don't by placing a caveat over the property.

As for your other potential claims, if there is a provision within the contract that will allow you to pursue and offset these claims than by all means, do so, this would be a totally seperate action on your part.

I trust this clarifies the question as I respectfully XXXXX XXXXX you accept my answer, all the best to you.

Maurice, Lawyer

Category: Australia Law

Satisfied Customers: 2,764

Experience: Lawyer (Juris Doctor, MBA IntBus) with 25 years Australian Business Experience at Your Service

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