Building contract dispute

wicholuque

Hi,
We are in dispute with our building contractor regarding amount of monies owed.
The final certificate has been issued but is definitely incorrect as there are charges for items either not supplied or which were already included for in the drawings & spec not to mention several other very dubious claims.
The money is now being demanded via legal letter.
How do we best proceed to challenge this ?.
Can we refuse to pay any of the amount at this point if we know there are even a few claims that are definitely incorrect ?.
Alternatively, is there a facility to request that the final certificate be amended for these inappropriate claims (that contractor is definitely not entitled to) and would we then be expected to pay the balance ?.
Or, can/should we be looking at arbitration at this stage and if so, how does arbitration work i.e. if we request it, are the other side compelled to agree ?. Also what (and who) does it involve ?.
Thanks

nuac

Mod
Solicitor time, but leaving open for general discussion subject to forum rule re legal advice

Victor

Someone had a similar thread to this the other day, as part of a college project.

You make no note of the form of contract or any other details.

Under the terms of a contract, the final certificate is usually binding. That the certifier isn't very good usually isn't a good reason to ignore it.

If you are disputing the final certificate, you will have to involve your solicitor (assuming solicitor wasn't involved in contract). It may be that you will need to put the funds in escrow, hire an independent quantity surveyor, threaten to fire the certifier unless things are rectified ...

At an extreme level, you may need to involve the Garda National Economic Crime Bureau (aka Fraud Squad).

Stanford

Who issued the Final certificate of Completion?

wicholuque

Thanks for the replies.
Is it possible to get a link to this other similar thread.
Blue form RIAI contract.
Final certificate issued by architect who was project manager.
Probably 80% of amount on final certificate relates to either
a. clearly not merited, either for items not supplied/undertaken or claims which were already allowed for in drawings & spec.
b. highly debatable/dubious as in the case of an Extra Over Time (EOT) claim that has been approved by the architect but appears to have been applied for grossly late (almost 2 years after practical completion).

Of note, the EOT accounts for about 60% of final certificate figure.

The most extreme example of wrongdoing relates to a documented cost saving during the project which is now 1200e less in the final certificate and when questioned on this, the only answer the QS can offer is that the initial figure must have been a mistake !.
Any views on arbitration process would be appreciated; how onerous is it time wise and financially. Also, can architect/QS be largely sidelined as we have zero confidence in them at this stage.

nuac

So you are in a building contract dispute where you have lost confidence in the architect and QS?

Be careful. You need to consult a solicitor experienced in those situationn

Victor

wicholuque wrote: »

Probably 80% of amount on final certificate relates to either

How does this compare to the contract amount?

a. clearly not merited, either for items not supplied/undertaken or claims which were already allowed for in drawings & spec.

You indicate savings were made. Sometimes in the whole in/out shenanigans there are oversights.

b. highly debatable/dubious as in the case of an Extra Over Time (EOT) claim that has been approved by the architect

What does "Extra Over Time" mean? Do you mean that extra overtime was done to speed up the project?

appears to have been applied for grossly late (almost 2 years after practical completion).

Why has it taken 2 years from practical completion to final certificate? This suggests a fraught relationship between design team and contractor.

Of note, the EOT accounts for about 60% of final certificate figure.

How does this compare to the contract amount?

The most extreme example of wrongdoing relates to a documented cost saving during the project which is now 1200e less in the final certificate

This would not be unusual. By omitting X, there can be unforeseen knock-on effects. For example, omitting marble floors in the bathroom, you still need to have some flooring in the bathroom.

Any views on arbitration process would be appreciated; how onerous is it time wise and financially.

You would like the situation to not require arbitration. While arbitration isn't as bad as court, costs can rack up.

Also, can architect/QS be largely sidelined as we have zero confidence in them at this stage.

Realise they may be your best assets.

Warning: There is a tiny hint of you being the client from hell. This is not an insult. This may make you your own worst enemy.

Initial task: compile a file of all documentation that you have been sent - drawings, contract documents, letters, emails, reports - everything.