Legal rights to materials when customers don't pay?

[Fuzzy165]

I hope someone can help.

I've taken on a large project, new build oak frame house. Customer happy to pay deposit and then money at completion of first fix. Completion of second fix has been delayed as they've run out of money to complete parts of the building but a large part of the second fix has been completed. We've been paid for part of what's been completed but they still owe around £4k. And it looks like they aren't going to pay this any time soon (it's been 5 wks already).

Is there any reason why we cannot remove materials from site, disconnect supplies etc. I can't use the certs as leverage as the project is not going to be completed for some time.

We've also been told today that their lender requires copies of all qualifications (not a problem) and that the lender is sending an independent assessor to the property to provide a valuation of our work?!! WTF?

Has anyone else encountered this?

 

[snowhead]

It could be that the Property owner has appproached the lender for more money possibly to pay you and they want a valuation to see what they are lending against.

You have no right to enter the property to remove materials already fixed without the agreement of the property owner.
If you do and you cause damage of any sort you'll end up paying for that damage.

You say you've been part paid, are the bits you've been paid for individually identified eg. boxes, fittings and particular peices of cable etc, otherwise how do you and they know which bits have not been paid for?

 

[markc123]

As snowhead says - once you've fitted the gear, you can't remove it if they don't pay because you're somehow stealing.

Crazy.

 

[shanky887614]

As snowhead says - once you've fitted the gear, you can't remove it if they don't pay because you're somehow stealing.

Crazy.

Send in the balifs lol

Seriously though there worse than paying someone in the pub to do it.

Im sure they have a nice car between them for example and as soon as they get letters from them then they will pay

 

[Geordie Spark]

Romalpa Clause

Read all about it here: https://www.google.co.uk/search?client=opera&q=romalpa+clause&sourceid=opera&ie=UTF-8&oe=UTF-8

LOTS of info.

 

[Fuzzy165]

Thanks everyone for all your help/advice.

After checking things out on Google and speaking to some other sparks, the general consensus is wait until assessor has completed his visit. Once that's done the lender should release any further funds required.

If that doesn't happen it'll be down to collection agencies, bailiffs and small claims court. Oh joy...

 

[shanky887614]

Thanks everyone for all your help/advice.

After checking things out on Google and speaking to some other sparks, the general consensus is wait until assessor has completed his visit. Once that's done the lender should release any further funds required.

If that doesn't happen it'll be down to collection agencies, bailiffs and small claims court. Oh joy...

put in letter that if no action taken in such an amount of time, the matter will be taken up in court and debt collection agencies will be contacted

 

[dansk]

it's a pain in the --- situations like this, I've been looking at this for future large jobs https://www.transpact.com/ anyone used anything like this?

 

[vxwestie]

5weeks? Really....
thats just a short period for customers these days

 

[Geordie Spark]

put in letter that if no action taken in such an amount of time, the matter will be taken up in court and debt collection agencies will be contacted

It's called a Letter Before Action (LBA) and the time limit is usually seven days - hence the other name for this which is a Seven Day Letter.

Don't forget to add Statutory Interest (Google it) which you're entitled to charge from the day the invoice became overdue.

 

[High Tower]

It's called a Letter Before Action (LBA) and the time limit is usually seven days - hence the other name for this which is a Seven Day Letter.

Don't forget to add Statutory Interest (Google it) which you're entitled to charge from the day the invoice became overdue.

Close but no mate!,

The statutory 8% interest is called late payment interest and only comes into effect after 30 days, and is only applicable to commercial transactions.

So unless they are using a trading company to build this house then you can't!.