• Constructions builder settlement

We started construction only on oral commitment no agreement is done as my cousin brother who did plan for me is a part of the construction company on a trust basis . They agreed for 1700/sqft and total roof slab Is 2300sqft. 2300*1700 =3910000
Start date is Aug 2016
For some personal reason stopped for a year restarted in Nov 2017 and builder started with the column plinth and then roof slab and then walls . work to be done was not discussed in most of the places they took their own decisions and have put 6"plinth and we wanted 9"plinth we extended plint later . 
Till April 22nd 2019 he did only one floor and between Aug and June contractor went to his native for his marriage and no work was done in the site and only one worker was working till Oct 2018 when we asked them to put more laborourer They were giving reasons like we don't have enough labourours . We have shortage of money for rotation 
We decided to do house warming on Dec 10th2018 and informed contractor in September abt the same he said he would complete it on Nov 25th and handover . After that btw deepavali and dasara they dint work .Contractor went to native again and was not reachBle for calls . 
Suddenly from Dec 1st the work got faster and more labourour worked in building and most of the materials we were asked to get 
 Though it is contract work we have been running around for selections of materials and providing it on time and none of the team has joined us for selection of tiles or hardware or sanitary . We have only got them wood and tiles and glass sanitary fittings and most of materials .
 we find lot of mistakes in the work which is not satisfactory building is cross from one corner to other which has spoilt the whole looks . 
 Staircase is cross and all bathrooms are cross and glass bricks are not inserted the way it has to be .most places they have taken their own decisions without our concent . Most walls do not have 90°angle , 
 Inspite of all these adjustments contractor just mentioned during a conversations says the prices are going high it would not be as discussed . Extra Steel cost is to calculated water charges used for constructions has to be paid by owners current charges are to paid by owners .
 We already have paid him 34.2 L out of 39.10 L excluding compleeete wood work , tiles , and sanitary fittings and also glass for all windows and skylight grills and toughned glass . So we r worried after spending so much also and adjusting with most of their work should we pay them extra .
 What should we be ready with for closing discussions and settlements ?
Water tanker used for construction are contractors or owners pay?
 Do we need to make an agreement at least now to confirm the payment clearance ?
 Do we need to pay something for the time period we stopped the work {1yr approx} ?
Asked 7 years ago in Civil Law

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8 Answers

1) you dont have any written contract 

 

2) amount to be paid for construction of house has not been reduced to writing 

 

3) in absence of contract you can rely upon correspondence exchange with contractor regarding scope of work , payment to be made etc 

 

3) enter into agreement now regarding payment to be made 

 

4) there should be arbitration clause for resolution of disputes 

 

5) water tanker contractor has to pay 

Ajay Sethi
Advocate, Mumbai
99891 Answers
8153 Consultations

Yes you need to execute document for Payment clearance. Water tanker is mostly devlopers liability. But I don't know what arrangements you have with them. Actually all this is defined in Development Agreement. Now go pay extra depends on you as the project is already delayed and you have suffered loses. So you discuss the same and try to negotiate.

Prashant Nayak
Advocate, Mumbai
34602 Answers
249 Consultations

Since there is/was no agreement governing the relationship between you and this contractor, there could be no concrete answer to your queries. Having said the above, it is advisable that agreement is signed at least at this stage which armours you to make the necessary deductions from the final pay-out as there are a lot of on going issues with this contractor.

Water tanker used for construction are contractors or owners pay?
Ans. Has to be in accordance with the agreement. Technically, this liability must be borne by the contractor.

no need to pay for the duration for which the work was stalled. 

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

See in my view since there is no agreement between you so the things like water tanker extra cost has to be now mutually decided further since firstly there was delay on your part later builder has not worked properly in your case what I would suggest you to pay a nominal amount above agreed and get work done .

 

As if the issue goes in litigation there are faults on both ends. So in situation what would be best to negotiate on amount by using quality of work and other things.

 

If he seeks higher amount refuse same further if he is adment file a consumer complaint for bad quality of work that is deficiency of services and claim compensation from him.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Hi,

As of now, you need to discuss everything with the contractor and put all the things in writing as agreement. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

Try to settle dispute amicably through an mediator or you can approach court for arbitration or mediation for settle dispute. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19350 Answers
32 Consultations

The work was on a contract basis even though the contract was oral.

Therefore, the contractor/builder only has to undergo the extra costs due to price hike of the materials.

The delay obviously was on the part of the contractor and not the owner hence you can deny to pay any extra charges.

The procurement of water through tankers is also the responsibility of the builder because it will incude in the contract amount.

If the builder is threatening to stop the work, then you may lodge a complaint against him with the local police for cheating and breach of trust and contract.

If the builder is trying to harass you then you can even issue a legal notice to him instructing him to complete the construcion at the earliest or to pay the penalty for each day of delay beyond the stipulated period.

T Kalaiselvan
Advocate, Vellore
90093 Answers
2503 Consultations

First mistake is not made construction agreement, where all your queries must have gets clarified.

Now you can make agreement about what is going to happen with the clauses.

G Suresh
Advocate, Chennai
394 Answers
5 Consultations

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