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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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We are a business and we have a basic contract with a developer

Customer Question

We are a business and we have a basic contract with a developer that says we will build six new dwellings for them, the developer has decided to no use us now and we have substantial outstanding invoices.
Can you help?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Is the contract signed? What did the contract? Did the developer agree to incurring these invoices on its behalf?
Kind regards
AJ
Customer: replied 2 years ago.

Hi AJ

The contract is signed.

The contract said:

This is to confirm that Mrs Frost has instructed G4 Building Solutions to carry out the building works necessary to complete six new dwellings under her instruction.

Signed Signed

________________________ _________________________

Mrs Y Frost Mr A Gibb

(Director, G4 Building Solutions)

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Has the developer taken the benefit of the work you have done date?
I.e have you provided any services delivered materials etc?
Kind regards
AJ
Customer: replied 2 years ago.

Yes,

We have been working there since March 2014. We have been paid nearly every 2 weeks since then. Now she has decided to stop working with us and employ her own sub-contractors.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
What is the value of the unpaid invoices?
Kind regards
AJ
Customer: replied 2 years ago.

£22,895.98 after CIS

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Ultimately without a written contract in detail, you still have a claim for contractual breach on the basis that you agreed to provide a service and she agreed to pay you for it.
If she has received value in relation to the invoices you have incurred and has terminated the contract for no reason, she is potentially in breach of contract and you can sue her from any damages arising from a result of the same.
What I recommend you do is the following:
(i) Get her to confirm in writing that the contract is terminated;
(ii) Make a formal written demand for the money;
(iii) If she refuses to pay then you can sue her for breach of contract - https://www.moneyclaim.gov.uk/web/mcol/welcome
If you go to a local solicitor and get them to write a letter to her demanding payment, I would be surprised if she contests it, especially if you have already done the work and paid for the materials. Once she receives a letter from a solicitor on headed paper it will give it the added gravitas that you have been advised and should be taken seriously.
I look forward to hearing from you.
Kind regards
AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

She is not refusing to pay, she has said that she cannot tell us when she can pay. But she has other contractors on site working.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
She should pay within your normally payment terms. If she does either request she pays interest or sue her.
Ultimately you know she has a property you can secure your debt against.
What are your payment terms?
Kind regards
AJ
Customer: replied 2 years ago.

What sort of interest rate?

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
You can either agree that with her, in return for giving her additional time to pay?
Or you can claim statutory interest from the date of Judgment at a rate of 8% per annum if you sue her.
Kind regards
AJ
Customer: replied 2 years ago.

What sort of interest rate should we be charging?

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
She would have to agree it, but I think on the basis that you give her more time to pay I think 2% a month could be justified, it is really whatever you can agree with her.
Kind regards
AJ