when is final account paid- before or after snag items?

MizMix

We have 5 % retention in our contract (6 months post completion).

Several largish items on our snaglist haven't been completed (or were overlooked) including decking laid wrong and is now breaking. One of these items was to check drainage on a flat root (rain sitting in it).

Should these items be completed before final account is paid? We'll still have the 5% held back.

Victor

If works were not done, they don't get paid for. In the normal course of events, the final account would be paid once it is agreed and then after the defects liability period is up, the retention is released.

If the amount of retention is insufficient, then that might be another matter - but you would need professional advice.

MizMix

That's what my OH is worried about- if there is something with the roof for instance that needs to be fixed then the retention may not be sufficient. It's likely something very minor but it was ignored on our snaglist so we don't know. A few more 'awkward' items were ignored from the snag too- like an unpainted soffit (it's in our tender as a skim and painted finish but it was left bare.

Metric Tensor

When you say "final account" do you mean the payment to bring the total amount up to 95% or do you mean release of the retention to being the total paid up to 100%?

At any rate - substabtial completion (i.e. 95% for you) is normally after the main more is completed and major defects being corrected would be part of this - butequently some smaller snag items drift into the defects period. What has your professional said?

MizMix

Once we pay the final account (it's due with us in several days) it'll bring us up to 95%.

Our architect a few weeks back was insisting all snags were completed. I said we were happy to release payment once it comes in as it's just a few small things. The issue now is the few minor snags has become more with the entire decking falling apart- we flagged it to him weeks back in was moving but now loads of the boards are cracked (just in the last week) so he'll probably need to buy in extra decking.

I do have good faith in the builder but just don't want the outstanding items dragging on till the end of the 6 months. He's saying it'll get done when he final account (95%) is paid - it's probably best to meet him face to face as these things can escalate easily by email.

severeoversteer

MizMix wrote: »

Once we pay the final account (it's due with us in several days) it'll bring us up to 95%.

Our architect a few weeks back was insisting all snags were completed. I said we were happy to release payment once it comes in as it's just a few small things. The issue now is the few minor snags has become more with the entire decking falling apart- we flagged it to him weeks back in was moving but now loads of the boards are cracked (just in the last week) so he'll probably need to buy in extra decking.

I do have good faith in the builder but just don't want the outstanding items dragging on till the end of the 6 months. He's saying it'll get done when he final account (95%) is paid - it's probably best to meet him face to face as these things can escalate easily by email.

i'm a builder, when I read about the cracked decking I am thinking that if it is timber it is more than likely down to the sun drying out the timber and cracking it, this is kind of unavoidable given the nature of the material and in some contracts shrinkage and distortion of wood finishes is deemed not to be a defect (over time).

If your architect has checked the work and is happy that snags are completed you are probably safe enough to pay up.

normally the engineer or architect, client and myself walk around at the end of a build and agree the snaglist and sign off to accept the building (i.e handover stage)

kieran.

If its minor items like cracked decking/painting missed he is more than likely due his 5%.

If the snags stop the house being occupied then I would not release the initial 5% of the retention monies, as I would not issue the practical completion certificate.