Advice
Many conflicts in construction can be avoided: Here is advice on extra work, diaries, responsibilities and other relevant topics.
1. Extra work
You should not do extra work without a written agreement. The agreement must describe the work, the price and the extension of time. If you cannot agree on an extension of time, you must send an email to the builder / builder's representative and state how much extension you want. If you cannot agree on the price, you must do the work. The work then becomes bill work - and you bill it afterwards.
2. Construction Meeting Minutes
You must read construction meeting minutes carefully and make objections (in writing) if the minutes are deficient or if you do not agree with the content. 'The table catches', and in litigation 1½ years after the construction is complete, the building meeting minutes form the basis for the description of what has happened / what has been agreed.
3. Suspension / cancellation
If the client does not pay your invoices, you can choose to stop the work (AB 92 / ABT 93 § 23.) You must give 5 working days notice before you stop the work. You must be VERY, VERY confident that you have a receivable due before you stop work.
What usually happens when you stop is either that the builder pays or he cancels the contract on the grounds that the stop is a breach.
If the developer cancels the contract, he must at the same time call for a city deal, which will show if you were eligible to stop the work.
If you have stopped right, you will be entitled to your receivable + the advance on the part of the contract that has not yet been completed. Typically about 20% of the remaining contract price. '
4. Correcting deficiencies: Right versus duty
In principle, the contractor has the right and duty to remedy deficiencies. It is very dangerous to refuse remediation because it allows the developer to have another contractor remedied at the contractor's expense,
If the builder claims that there are shortcomings - and you do not agree - you must clearly (in writing) object. And then you should just as clearly OFFER to remedy the deficiencies subject to claiming payment if it turns out that there are problems that are unrelated to your work.
In order to clarify whether there are defects for which you are / are not responsible, an estimate must be made before the remedial work is carried out.
5. 5 years - 10 years
It is clear from AB 92 § 36 that, as a contractor, you are responsible for the construction for 5 years. This applies in the relationship between contractor and builder and between contractor and subcontractor.
Consumers, however, are protected by the statute of limitations, which gives the consumer 10 years to make claims. This meains that as a contractor, you may find yourself in a situation where, after 8 years, the private builder raises a claim against you that you cannot pass on to the subcontractor who has done the work. The same goes for your relationship with the material supplier.
When building for private costumers, make sure your subcontractor accepts that the usual warranty liability is extended to 10 years. You must also ensure that there is a 10-year warranty on materials.
At BYG Law Firm, we hope that with these advice you can avoid the most frequent construction conflicts in the future. If you still have a conflict, feel free to contact us for an assessment of your case.