copied over from the bust watchers topic...
Quote:You can try taking these cowboy builders to court (which i am sure you have considered).
May be different if they are complete cowboys perhaps, but I have been advised not to go the court route given the costs and long timescales, and that a court can have difficulty in seeing through the BS in what becomes a he said/she said type situation.
It is important to have a contract retention, and never to have paid for anything in advance, only as it is completed. Unfortunately they may bill items as fully complete before they are, and items may not be explicitly mentioned in the quote even when they are part of the specification.
Each situation will differ of course. In general it does seem there is a subset of builders/trades that are largely focussed on making supernormal profits by cutting corners, using cheap poor subcontractors etc. The builders relationship with their subcon trades is opaque so it is never clear whether they are articially increasing their profit by instructing trades to do the minimum, or using ‘job & knock’ arrangements etc.
I am glad to see filing requirements for small ltd companies are being increased to require P&L accounts to be filed. It seems common to find the company files little financial information and regularly extends accounting periods from 12 months to 18 months etc. So you end up blind over whether the company has any cash or working capital or debts or is making any profits.