HELP PLEASE, Builder sent LBA, job unfinished, withholding insurance cert

[Vitamin33]

Hi to everyone and Happy New Year
I am posting on behalf of my daugher, who signed up today on my recommendation, as I said I thought you could help, but she can't upload doc so I'm doing it.

"Hello to all
I've just signed up on recommendation of my mum, who said she thinks you can help me.
My hubby and I have just had a big build onto our house was a bungalow and went up one storey. Been quite hard dealing with building company, various issues, and they seem to avoid committing to things in writing. Basically we've paid them over £347K (now mortgaged up to the hilt) and there is a balance of £6k outstanding but lots of snags and leaks but they refuse to fix anything unless we pay outstanding invoice.
We also need insurance certificate but they won't hand it over. Today we got a LBA for the £6K from a no-win no-fee firm, Westbury Collections. Things have got heated over the last week.
I have created a doc with emails and letters between us with names redacted, attached. The firm is a limited company, been going since 2005, but not much experience of refurbs I now realise.

My questions are, do we have to pay them? What happens if they refuse to hand over insurance cert? I'm scared it will invalidate my mortgage?
What recourse do we have? Can we sue via small claims for various works unfinished or badly finished? You will see from exchanges that they did not fit a new bigger pipe coming into the property, despite it being in writing in an email that we needed and wanted that. My brother, a gas engineer, now says the flow is insufficient for size of house, and that we need a report to say as much, but I can't find a company to provide one.
Anything you can say to help will be massively appreciated." PLEASE IGNORE I WILL GET MY DAUGHTER TO POST DIRECTLY AS EASIER

[islandgirl]

I assume the work will have to be signed off for building regs by the local council? This is not advice as I have no legal knowledge in this area but I would be saying that I would not engage re any payments until the work is signed off (no commitment to pay but just no communication re the money outstanding until that point). Hopefully you can get recourse for the poor workmanship and others may be along to advise soon.

[Vitamin33]

I assume the work will have to be signed off for building regs by the local council? This is not advice as I have no legal knowledge in this area but I would be saying that I would not engage re any payments until the work is signed off (no commitment to pay but just no communication re the money outstanding until that point). Hopefully you can get recourse for the poor workmanship and others may be along to advise soon.

Thank you IslandGirl, good point, I will pass this on to my daughter.

[atticus]

Does your daughter have legal expenses insurance cover with, for example, a home or motor policy?

[Vitamin33]

Does your daughter have legal expenses insurance cover with, for example, a home or motor policy?

Thank you, Atticus. She doesn't think so, but she's going to check.

[Vitamin33]

Just a quick update to say my daughter hasn't posted under her name on here as she's a bit daunted, but she has contacted the FMB, to which the building company belong, in the hope they can mediate. The other side have been on holiday so another two weeks to wait. She doesn't appear to have any legal cover via buildings or home insurance, or car.

[Pezza54]

My advice
Avoid going to court if you can. If you lose you could end up paying the claimant's legal costs.
Did the LBA offer arbitration? If not, you should write to the law firm, copy to the builder, suggesting arbitration, with an arbitrator to be agreed. Make sure the chosen arbitrator is experienced in building contracts.
In the meantime take photos of outstanding work and defects and attempt to price them individually,, forming a priced schedule with a total value.
You could email this schedule to the builder, copy to the law firm, and seek their agreement to being paid as and when individual items are finished or put right..
This seems reasonable to me. A court would want to see that both parties have tried to settle and avoid legal action.

[Vitamin33]

Really good advice, Pezza54. Thank you. I will pass on to my daughter. I haven't seen LBA, all I know is it's a no-win no-fee solicitor firm. My daughter is hoping that the Federation of Master Builders will mediate but have to wait and see. The builder is on holiday at the moment so no movement. I will keep you posted.

[Pezza54]

Sorry forgot to say take the photos as soon as possible and date them when taken. The builder could argue that the work has deteriorated due to the time that has elapsed and usage.
If the dispute does end up in court you will require the judge's permission to employ an expert (chartered building surveyor) to prepare a report with a schedule along the lines I suggested. Also a solicitor to write the defence, fill in legal forms and meet set deadlines. Add in court and hearing fees and you can see how quickly costs can mount up.

[Vitamin33]

Thank you again. I will pass on what you say. Phew, yes, I agree that legal action should be a last resort

[Pezza54]

Other things to bear in mind
to offer a no win no fee service the solicitors must think they have a very good chance of winning the case
the solicitor will want to boost the claim over £10k to avoid the small claims track.. If they win the losing defendant will end up paying their costs, not their client.

[Vitamin33]

That's an excellent reminder, thanks vm ... I had read somewhere in years gone by how a defendant got saddled with all the costs through a NWNF action. In this case though the builders are suing for £6,006, for their last invoice, but maybe they'll up that.