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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11419
Experience:  30 years as a practising solicitor.
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hi, i am currently having a house extension built whic is halfway

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hi, i am currently having a house extension built whic is halfway through completion. i have just been informed (not by my builder) that his company has gone into liquidation, and that the liquidation date was BEFORE the date he started the building works. where does this leave me in terms of the following:
- getting the building work completed
- any guarantee for the building work already undertaken
- getting my money back (he requested a significant amount of the money upfront for building materials etc)
- can he continue to work if the company is in liquidation?
Thank you for your question.

If the builder's company has gone into liquidation prior to the contract for the work being entered into then your contract is not with the company but with the individual. He can't argue that his company is responsible when he didn't have a company to carry out the contract. If the contract was entered into pre liquidation then the builder appears to have novated to himself as an individual if he started and is carrying on the works.

So your contract is with the builder as an individual. That means that you can hold him personally responsible to carry out and complete the works. Any guarantee would have to be made by him as an individual and he is responsible as an individual to you for the funds paid by you for the materials.

He can continue to work as an individual. He may have some issues with the liquidator in respect of funds paid over but his responsibility to you is as an individual, particularly where the works are ongoing.

I hope this helps. Please leave a positive response so that I am credited for my time.
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