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Building company sent me to debt collection!!!

By 3 August 2014 11

Hi All,

Long story, trying to put as short as possible. We built our house is Canberra with a dodgy company.

My builder (who pretends to be builder, but actually is director of company) after finishing my home after 17 months asked me the final payment.

Then we started calculating the figures of how much is pending. Builder wanted to give $3000 off the final payment as he did not fix several major defects. I said I wanted $8000 as defects are huge and also as he is quiet notorious for not responding to any sort of communication after final payment is made. He did the same through out construction, no response to calls, emails or messages. Very hard to get things fixed.

He became offended because I did not agree to his T&C, then he started sending messages saying I have to pay 24% interest rate if not paid within 3 business days from issue of Occupancy certificate and then he raised the invoice for final figure which we derived. But In first place, I did not sign practical completion after which he had to send that invoice.

Some major defects like broken skylight, no fence, plumbing issues..etc, stopped me from signing the practical completion. But builder went on to get occupancy certificate and then asked me to pay. I said I would pay if we have agreement on the defects.

Builder ignored to respond and sent my file for debt collection.

I got call from them and demanding double the amount of what was derived while calculating final statement.

What are my rights here, how should I defend this, I feel being harassed and bullied by mal-practices of this builder.

Please help

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11 Responses to Building company sent me to debt collection!!!
#1
Kim F11:55 am, 03 Aug 14

You really need legal advice or to speak to the MBA or HIA

#2
dungfungus11:59 am, 03 Aug 14

If you have moved in let him start legal action and then defend yourself at the tribunal or whatever they call it now.
If you haven’t moved in you should seek legal advice promptly.
The worst thing you can do is “nothing”.

#3
bd841:00 pm, 03 Aug 14

You need to go and obtain legal advice.

#4
How_Canberran1:11 pm, 03 Aug 14

You don’t have to defend anything. Time to take the offensive….’lawyer-up’.

#5
Leon2:07 pm, 03 Aug 14

Kim F said :

You really need legal advice or to speak to the MBA or HIA

Well said!

#6
banco2:54 pm, 03 Aug 14

Wait until the bikies drop around to ask you about the money you supposedly owe.

#7
cranky3:39 pm, 03 Aug 14

Do not waste your time with the HIA or MBA. They are members associations, and have only their members interests in mind.

I was in a similar position, and never did resolve the situation to any satisfaction. I was advised to contact a senior certifier, who was able to lean on the builders certifier to correct some of the worst problems.

The ACT Gov seem to have no appetite at all for assisting to sort out these all too common disputes.

#8
JeanPierre93:49 pm, 03 Aug 14

let me know how to contact you i could provide some help

#9
dungfungus6:07 pm, 03 Aug 14

Kim F said :

You really need legal advice or to speak to the MBA or HIA

Going to the MBA or HIA is like complaining to the police about the police.
A total waste of time.

#10
isuserselva8:47 pm, 03 Aug 14

I had moved into the property in December with plenty of defects and missing things from inclusion, then because of pending payment, the builder started to fix things, but it took 6 months after that to bring house to a stage where it looked ok, “lets start final payment progress process”.

Paying him is not a problem, but it will be the worst pain in the life trying to follow him to get rest of the work done. This company is worst when it comes to responding to email/calls/sms or any meeting (after payment).

How do I whim or contact other posters here privately?

#11
davjp9:47 am, 04 Aug 14

I know what you are taking about. We have 150k worth of stuff wrong with our new home and the builder refused to fix it. We went to nsw fair trading who were great but after he didn’t fix it when ordered they couldn’t do anything so we had to go to solicitors.

We contacted the hia and mba when we first had issues But they said that they couldn’t help us unless we were members. Ie they work for the builders.

So after 2 years of stuffing around were going to court in a month and have been told that the solicitor might cost us 50k.

I’m happy to speak with you in person if you want to hear anything else or have other questions.

Don’t pay and go to fair trading or the office of regulatory services and lodge a complaint.

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