HI there
thought I'd take advantage of the get it off your chest forum.Quite out of the blue yesterday we got an email from a subcontractor who had installed an airconditioning/heating system into our property in Canberra which was rebuilt after the Canberra bushfires, saying they had not been paid by the builder – could we contact them.
Firstly I thought it had to be a prank – so I contacted the builder – to find he hasn't paid the subcontractor – though we paid him for the job in May 2005. He reckons he will organise to pay it in the next few weeks.
I was gobsmacked! The subcontractor is starting the debt collection process and the matter could end up in the small claims court – but it makes me think – firstly how will this affect our credit rating and is there any other subcontractors out there who haven't been paid?
Has anyone else had a similar experience and what did they do about it?
So far we have forwarded details of the accounts and evidence of payment to the subcontractor, and also an email to the builder suggesting he at least part pay the account to avoid the debt collection process – regardless of any cash flow issues – but obviously we don't want to have to pay the account again! We have also severed our connection with our property manager who was connected to the builder (which may explain why warranty repairs have not been done – and other repairs have taken forever). Any other suggestions? – as this sort of thing has really turned me off having anything further to do with building.
thanksI would have thought that the contractor's agreement was with the builder.
Your contract would have been with the builder to do the project I'm guessing, and he then subcontracts out the work to subcontractors. He employs them – not you.
It sounds as though the subcontractor may be trying his luck with you as he is having no luck with the builder. If you still have your contract for the project with the builder, check it to see what your obligations are/were.
Hi Marc
you are quite right – any contract is between the builder and subcontractor – and the builder has acknowledged he is obliged to make the payment.
The only reason we are involved at all is because we obtained the initial quotes and submitted the one we wanted to the builder – who then contacted the subcontractor.
Its just it absolutely floored me that the builder can have the benefit of those funds for 2 years and not do the right thing by the subcontractor!
thanks
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