Contractor holding my house as hostage?
Hi, I am just here asking for advice on my situation. Currently I have a place being built however, currently the contractor is taking his own sweet time and little to no work is being completed. Im left with the carpentry and tiling.
The stipulated date of completion was on 2019 and because of covid has dragged till now.
Right now the issue i am facing is that the contractor claims that he is out of money and is unable to continue to job and require an increase in payment to continue working.
This is violating whatever was agreed on. He is currently making my life difficult but not answering my calls and also avoiding me.
Because of this I am just paying bank interest for no work, does anyone have any advice for me for this matter? I really am growing frustrated.
Any advice would be most welcomed
Netizens’ comments
Typically in such construction contracts you have “Key dates” that the contractor needs to hit with regards to works in order to qualify for progress payment.
If the contractor goes beyond the date of the contract you hit him with LD (Liquidated Damages). The key is to NEVER PAY THEM UNTIL THEY HIT THE PROGRESS REQUIREMENTS.
There is also a novation clause in contracts so that in the even the contractors go bust like the one you have, you are contractually allowed to hire a new contractor to resume the contract.
You have essentially been ripped off by a bad contractor sad to say. If you want any money, you need to sue him to either get it back or force him to complete the work.