Builder Owes Me Money

[ADDLED]

Hello again! Unfortunately I need to ask for help with a new problem thats cropped up, will try to be as brief as possible.

In 2022 my home was flooded and a total stripout and refit was required. The insurance companies loss adjuster was a nightmare to deal with so i got a loss assessor involved to work on my behalf.
They drew up a works spec and negociated payout with the insurance company, we employed a surveyor and a builder and the work finished last year.

There were some items that I was due to be refunded by the builder for: fitted wardrobes that were included in the insurance payout but werent reinstalled; the cost of worktops that the supplier repeatedly supplied incorrectly and this agreed not to charge for, and a list of other items such as omissions. He has also charged for work caused by their errors: they billed the insurance company to replace and refit kitchen units when they themselves had supplied and fitted the wrong colour.
Approx total is around £10k.

The builder submitted his invoice to the insurance company, has been paid, and has now gone totally silent, wont answer calls, emails or measages. Theres also a rumour that his Ltd company is in trouble but its still listed as active at Companies House.

Id be really appreciative of any advice as to how to proceed.

[atticus]

Have you taken the defects up with your insurance company?

[Pezza54]

Who agreed that the builder should be paid for work he didn't do and then refund you?
When changes were made and agreed with the builder, to the priced specification after work started, you should have contacted your loss adjuster and insurance company.
Who notified the insurance company that the work was finished and approved?

[ADDLED]

Who agreed that the builder should be paid for work he didn't do and then refund you?
When changes were made and agreed with the builder, to the priced specification after work started, you should have contacted your loss adjuster and insurance company.
Who notified the insurance company that the work was finished and approved?

Hi, tks for both replies. I need to give a bit more history/detail as i dont think I explained adequately in my original post. The flood was really severe, the internal water main pouring into the flat for two hours, parquet flooring all lifting up, etc. After the flood we were in contact with the insurance co's loss adjuster who was only willing to authorise sanding and sealing the floor, when what was actually needed was for the entire floor to be stripped, skirting, architrave and plaster removed from walls, months of dehumidifying machines, rehoming us in the meantime, yet they wouldnt agree. Realising I had a major fight on my hands I got a loss assessor/claims manager involved. They negociated with the insurance company via the loss adjuster, all with my interests first and foremost. They add a fee, which is added to the claim. We also employed a surveyor to oversee/sign off works, again paid for by the insurance company.

We obtained several quotes from various builders for the works for the stripout, drying, refit and redecoration, presented them to the insurance company, and both parties agreed on one of the builder's valuation. We were rehomed for the duration of the works The insurance company make a monetary payout to the claims management company and we went ahead with the work. On completion of certain stages the builder gets paid.

One major issue is the fact that the kitchen worktops, supplied by a third party via the builder's account with them. They should have been supplied with a recess cut in order to fit a particular hob, but the supplier kept getting the job wrong so it had to be sent back three times, delaying install. When it finally arrived correctly cut the supplier confirmed that the worktops would be free of charge.

The builder put in a charge for the worktops that his supplier said would be free and was duly paid by the claims manager. When i pointed out that he shoudlnt have been paid I was told by the claims manager that my contract is between the builder and me and that he cant get involved. The builder is now impossible to get hold of, so im stuck between a rock and a hard place and not sure how to proceed.

I've a copy of the T&Cs from the claims manager that I can attach, just need to find them later today.

tks
ADD

[Pezza54]

I had a similar insurance company claim years ago when my kitchen flooded. The insurance company sent a loss adjuster to produce a report on the damage and work required. I don't remember the loss adjuster pricing the work
A drying out company was used and paid for by the insurance company direct to strip, remove some plaster and dry out with dehumidifiers.
The insurance company asked me to obtain two quotes from builders to reinstate the work. I did this and the insurance company averaged the quotes and paid me the money to arrange my preferred builder to do the work and pay the builder

[ADDLED]

I had a similar insurance company claim years ago when my kitchen flooded. The insurance company sent a loss adjuster to produce a report on the damage and work required. I don't remember the loss adjuster pricing the work
A drying out company was used and paid for by the insurance company direct to strip, remove some plaster and dry out with dehumidifiers.
The insurance company asked me to obtain two quotes from builders to reinstate the work. I did this and the insurance company averaged the quotes and paid me the money to arrange my preferred builder to do the work and pay the builder

Exactly that, except that in my situation the claims handler pays the builder. The builder has been paid for work that he didnt do, won't answer emails or calls and I'm hearing that he might have shut down his Ltd. company. I understand that if a Ltd co folds then you've no claim but, in the instance that the builder has claimed monies that weren't due to him, is this fraud/negligence and can I therefore issue a CC claim against him personally? There were two directors of the building firm, both own the properties they live in, mortgage free, so have assets.

[Pezza54]

Unfortunately you can't sue the builder that has gone into liquidation. Google "piercing the veil" and read a few of the articles
The claims handler may be at fault for paying the builder for work he didn't carry out

[ADDLED]

The claims handler may be at fault for paying the builder for work he didn't carry out

Tks again for your reply. I'm certain that the builder has been acting fraudulently, but I guess he'd need to be convicted of fraud before I would stand a chance of claiming from him directly. Ive attached the T&Cs from the claims management company. What d'you think?

tks
ADD

[Pezza54]

Okay
The insurance money is paid by the insurance company to the claims company and held in a client account ready to pay the builder, specialists (the surveyor?) and the claims company fees.
According to the 2nd paragraph under " 6. Terms" you (or your surveyor) should have notified the claims company to withhold money for work that was not completed as the agreed specification/quotation. The claims company retains the money and keeps any interest that accrues until he is told work has finished
You stated that one of the surveyor's duties was to sign off the works. Could the the surveyor be at fault if he told the claims company the work was 100% complete. Normally in a building contract 5% is retained in case defects in the work materialise

There is a saying that covers what has happened: "Too many cooks spoil the broth"

In my opinion the claims company has done nothing wrong, following contract terms. The builder has been paid for work he didn't do and disappeared into the sunset. The surveyor may be at fault if he told the claims company work was 100% complete

[ADDLED]

There is a saying that covers what has happened: "Too many cooks spoil the broth"

Tks Pezza, I really do appreciate your help but I don't think that rubbing my nose in the £10k turd is very polite or indeed helpful. Its a shitshow, I dont need reminding... and I really hate soup!
Im trying to find the paperwork from the surveyor, should have it sometime tomorrow if its where I think it is.

[ADDLED]

Emoji fail.

[Pezza54]

Nothing personal
Why did the builder submit his invoice to the insurance company?
You contracted with the builder and the insurance company paid the money to the claims company

[ADDLED]

Nothing personal
Why did the builder submit his invoice to the insurance company?
You contracted with the builder and the insurance company paid the money to the claims company

Hi invoice was submitted to the claims management co via their appointed surveyor. Apparently the builder and surveyor met to sign off the work but didnt involve me or ask me to attend. Very fishy.

[Pezza54]

You should write to the surveyor ("we appointed a surveyor"), copy to the claims company, asking why the work was signed off when it was not finished.
Ask for a reply within 7 days