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Contractor with-holding payments as Completion Date is a month away

+1 vote
We have been the sub-contractor on a site which started almost 2 years ago.

My partner in business retired so i formed my own company which started January 2017. The Contractor was quite happy for me to carry on but had to update him with the usual Health and Safety requirement, insurance, Plant/machinery certs all in the new company name...

We are now nearing completion of the site and the contractor is refusing to pay, as he says i`ve received all the money from the BoQ.

There have been a lot of extras that i was asked to do that were not on my BoQ and the measures on the BoQ were far exceeded ..they now owe me £89,000 with the job still ongoing they want to take a deal of me losing £45,000.

I never received a new Contract under my new company name, where do i stand with this situation as it looks like they`re gonna cost me my company.
asked Feb 13, 2018 in General by Jamesina (160 points)  

1 Answer

+1 vote
Best answer
Hello Jamesina. I'd love to help. This sounds a tricky situation for you. The options open to you will largely depend on 2 things: (1) the mechanics of the contract Option B or D (you say BoQ but it's not clear which), and (2) how the move of the work from one company to your company was effected. A crude deal proposed for half of what you say is due, is not the correct (legal) answer, although it is a quick (commercial) one, and if your client suspects you are desperate for cash, that's a mean but typical thing to do (sadly). We would need to look through the documentation, emails, etc, in your new company name in the absence of a proper transfer to the new company. For others in the same boat, please please always take legal advice on this situation. There is a danger that the old company still "owns" the contract obligations - and the rights that go with them... Please give me a call to talk further. Sarah 07970101188
answered Feb 13, 2018 by Sarah Schutte (660 points)