All Topics / Help Needed! / Building company next door won't pay agreed share of retaining wall

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  • Profile photo of ScottdanzaScottdanza
    Participant
    @scottdanza
    Join Date: 2013
    Post Count: 7

    Hi all, would love some advise on this very stressful issue which has been going on since November 2013!
    Background: we built investment property in Toowoomba, retaining walls were required and priced in our contract, then days prior to our builder erecting a 1m retaining wall, the builder next door cut their block approx 1m down on our boundary, resulting in an issue with installing the wall (we are on the higher side). Essentially now requiring a 2m wall. Both builders agreed it was in both parties interests to build 1 x 2m wall and costs would be split. Surprise, surprise, we still haven’t been paid. But have learnt a lot over the past 6 months!!! (now aware of the agreement we should have completed and signed prior to all of this)
    Long story short and months of phone calls & emails, the company (Construction Build) have agreed to pay us $4300 of the $12000 total (fence & wall). Unsure where that figure came from but we wanted it over so happy to accept.
    2 months after agreeing to pay $4300 (which we have in writing), they have paid us $2000 and said would pay the balance the following week. Which they haven’t – 1 month on.
    Any advice on how to get this $2300 from the company please? It’s stressing my wife out immensely and we really just want to put it all to bed but it’s all cash. They won’t call back or answer when they see our number calling. Should we go to the Small Claims (QCAT)?….
    Appreciate any help anyone can offer.
    thanks,
    Scott

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Do you have a signed contract with both builders that costs would be 50%?

    Generally I’ve known the higher side property to foot the entire retaining bill.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Speak to a lawyer about issuing a statutory demand under the corporations act. If they don’t pay or set it aside within 28 days you can wind them up.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    If they owe the money and there is no dispute they would have no choice other than to pay.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    <div class=”d4p-bbt-quote-title”>Terryw wrote:</div>
    If they owe the money and there is no dispute they would have no choice other than to pay.

    They do have a choice. The simply choose not to pay.

    Talk to any business that bills on account and ask them how hard it is to get creditors to pay let alone pay on time. The bigger they are and the smaller you are generally means you as a small business or individual are on the end of the payment queue. 90 – 120 days is fairly common. Not only that the outstanding just keeps growing. They often pay less than they incur. Building/construction companies are notorious for not paying what they agree to pay or are obliged to pay.

    Then it is a simple process to wind them up.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Issue a notice under the security of payments act through a debt collector experienced in this area.

    Profile photo of ScottdanzaScottdanza
    Participant
    @scottdanza
    Join Date: 2013
    Post Count: 7

    Thanks for your comments all. I’ve since visited the builder’s office as we could never get a response by phone or email. They have assured me that we will get paid the balance of the agreed amount, but they have some cashflow issues at the moment. But they have assured me we will get our money….. I do feel a little more confident after discussing face to face with someone!
    Thanks again.

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