Problem: We have a client who wanted some flats renovated but on a budget. We agreed the quote and went ahead with the work with a written contract in place.
During the works, the client carried out weekly inspections of our works and made no complaints. Any questions the client had, we responded. We also carried out additional works for the client.
The properties were subsequently completed, and we had a final walk around. There were a few snagging items, and these were attended to within a matter of days. All properties were then rented out successfully.
4 months later, the client is saying he is not happy with the works and wants money back and has had to get other contractors in to address issues regarding so-called poor standards of work. We were in contact with all the tenants as we had a maintenance contract to the externals – there were no reports of any issues.
We requested to see a report into these issues, but the client refused. The client has said he has now got another contractor in and wants a £5,000 refund for faulty / poor workmanship.
Where do we stand?
Response: You have said that you have a written contract in place, although you have not provided any details of this contract – if it is a standard form of contract (for example), then it will have conditions which will explain the procedure for recording when a project is considered as having achieved completion, and whether there is a defects rectification period.
Even if the written contract is silent on such procedures, where there are latent defects, although the client is not under a duty to give the contractor an opportunity to return to site and make good, the client will usually be under a duty to mitigate the cost. This means that if a third party has been employed to make good any defects without in the first instance giving the original contractor the opportunity to make good, the damages will be assessed as what it would have cost the original contractor if it had made good, and this cost is nearly always less than what the cost is to employ a third party.
My advice therefore is to refuse to make any payment to your client, and just wait to see what happens. If your client makes a claim against you, then part of your defence will be that the claiming party failed to mitigate the cost. This is in addition to the proof required that the defects were latent and your responsibility.
Good luck.
© Michael Gerard 2022
The advice provided is intended to be of a general guide only and should not be viewed as providing a definitive legal analysis.
Author background
Michael is a Solicitor, Chartered Builder & Registered Construction Adjudicator, and is a director at Michael Gerard Law Limited, a solicitors practice regulated by the SRA.