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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Property development-5 partners,20% share of profit

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Property development-5 partners,20% share of profit each.Partner (A) provides 60k towards deposits, will complete all building work on a £220,000 budget (not fixed price contract ) with remaining partners providing kitchen & sanitary ware.
The job necessitated considerable unforeseen additional work ( re-building for 50k 2 rear extensions)
The remaining partners insisted in writing 9 months into the project shortly before final fitting of bathrooms, shower rooms & kitchens that numerous major changes & additions be made.
All amendments were requested late into the job necessitating considerable de-construction of work already completed, repetition of work, loss of time, slow decision making, considerable extra cost.....
An extra £120,000 costs incurred with all copy invoices available.Question (1) Should partner (A) in his capacity as builder be able to recover the additional costs over & above the initial figure of £220,000.Upon 50% of the project being completed & sold at a profit. The other partners decided to pay themselves a profit share without any consultation & without paying & repaying capital expenses to (A).
Now the project is complete with money on account.Question (2) Should (A) receive his full costs even if it is required that profit previously taken has to be paid back into the pot..........? to facilitate repayment of full expenses.
Submitted: 1 year ago.
Category: Property Law
Expert:  Nicola-mod replied 1 year ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 1 year ago.
I am willing to wait until you find the appropriate professional.
Thanks
Customer: replied 1 year ago.
I am willing to wait.
Thank you Nicola
Expert:  Nicola-mod replied 1 year ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Customer: replied 1 year ago.
Thank you for the update. I will continue to wait patiently.Thank you
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.Is this for an essay, or exam? If not, was there anything in writing between the partners?Alex
Customer: replied 1 year ago.
Hi Alex
this is an actual real situation.
Yes the very basics of the agreement are in writing confirming; £220,000 projected work costs.
However additional work was requested by the partners in writing...list form.
( some of the requested amendments were improvements.These amendments were all put forward late into the progress of the job, at a stage that necessitated considerable repetition & destruction of existing completed work, together with additional increased labour & material costs ) any further queries please just email.
Thanks
Expert:  Ash replied 1 year ago.
Was it agreed that these extra works would be paid for? If so by whom?
Customer: replied 1 year ago.
No there was no clear agreement re the majority of these extra payments simply a clear request that this work be done...
A document was drafted by the other partners inclusive of myself outlining 30 amendments approximately 10 to be borne by me & the remainder by the other partners.
Further the other partners did not keep to the strict adherence of the agreed amendments schedule as they failed to source, finance or initially purchase the additional items they had requested/ insisted upon contrary to what had been agreed & drafted in the amendments document.
Please note none of these amendments were ones suggested by myself & I agreed to assist with the cost of approximately a third in a spirit of compromise & merely to break the deadlock & speed the progression of the matter.I am aware that this is a lengthy enquiry & that it may have been under priced...?I a available foe further enquiry..?
Expert:  Ash replied 1 year ago.
Question (1) Should partner (A) in his capacity as builder be able to recover the additional costs over & above the initial figure of £220,000.Sadly not - because there was no agreement that these additional costs would be chargeable. If there was a discussion, or it was in some written agreement that these works are extra costs then the answer would be yes.Question (2) Should (A) receive his full costs even if it is required that profit previously taken has to be paid back into the pot..........? to facilitate repayment of full expenses.No - because its a drawing of profit. If these additional expenses are on behalf of the partnership they are legitimate expenses and therefore it will be less this cost and then the split.Can I clarify anything for you about this today please?Alex
Customer: replied 1 year ago.
Re Q(1) A clear instruction was given by the other partners verbally & written,
A written schedule of additions & amendments was prepared & signed by all the partners.
An overseer/ quasi foreman was appointed by the other partners to deseminate their requests, instructions, likes & dislikes with countless instruction sheets.
Please clarify thank you...
Customer: replied 1 year ago.
Disseminate
Expert:  Ash replied 1 year ago.
Unless it was discussed there would be extra payment, then you can't charge for it. So unless there was someone that said this will be an extra charge and that was agreed, in the absence of any utter terms then it can't be charged for.Only if terms or an agreement has been breached can there be a charge.I am sorry.Alex
Customer: replied 1 year ago.
Thank you...
Expert:  Ash replied 1 year ago.
Good luck with this.AlexIf this answers your question could I invite you rate my answer before you leave today.If you don't rate then the site does not pay me for the time I have spent answering your question.Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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