• Delay in House construction by Contractor

Sir,

I have entered into an agreement with contractor for making the house for a period one year i.e till 03 Aug 2019.

It was purely based on the Design only not on square feet with a Fixed amount and design sent by him before singing of agreement clearly mentions diagram with porches with chhajja around. Main building area is 1800 sqm plus porches/chhajja.

Since beginning contractor has been quite slow and not able to manage the things properly. Most of the time workers are not available and also has payment issues with his vendors.

I have requested / warned him several time to expedite the work so that project can be completed within stipulated time but all in vain.

Till now only 50% of works completed and we are left with 60 days only. 

Now he has come up with new theory that extra work is being done for with he is demanding extra money literally blackmailing. whereas half of the work only has been done till now and i have made appx 90% payment.

He is demanding extra money for porches/chhajja stating that agreement is mentioning total floor area 1800 sq ft whereas agreement is not mentioning payment based on area rather fixed amount.

Now i feel contractor will certainly not be able to complete the project before agreed date i.e 3.8.2019.

How can i undertake the work myself / hand over to other agencies after contract period and what should i do in this regards.

How to ascertain the amount of work done by contractor and balance to be done.

How can i recover the money spent by me on completion of project from contractor.

What are the legal options do I have.
Asked 6 years ago in Property Law
Religion: Hindu

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16 Answers

1. Well, if you wish to now handover the remaining to be finished which is not a good idea though, you will have to first cancel the agreement , pay the penalty , if there is such clause and then engage a new contractor on fresh rate of work.

2. Since the present contractor has done half of the work and not much payment id needed to be paid , it is advisable that you continue with the same contractor. This would save your money and litigation as well unless he is ready to quit his work.

3. So talk to him and make a supplementary agreement fixing a fresh firm date of completion and penalty clause if he fails to complete the work. However if he is ready to quit the work  and handover the site and you have no issue to u=incur extra cost then take it back and engage a new contractor after getting a cancellation agreement from the previous contractor.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

First of all, give him written intimation that fixed tenure is about to end and work is not even completed 50%. IF the same is not completed with in given time, you are entitle to refund of full amount with interest. And compensation for delay.

Ask from him, if able to complete the work in left over period and if not than you are compel to change the contractor and ask him for refund.

IF he fail to do so, you will proceed against him legally both for civil and criminal.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

1.  The issues mentioned by you are a regular feature with small time incompetent & characterless contractors.  Any money taken by such contractors, are gone waste and cannot be recovered, without following due process of law.

2.  Issue him a Legal Notice to complete the said work by deadline date, ELSE the contract will be terminated by legal default.  Once this is achieved positively,  you can start balance work on your own, by piece-rated contractors.

3.  on 4th August, 2019,  file a Police FIR, requesting investigation and charge-sheet, for offences like cheating, intimidation, fraud, extortion, blackmail, breach of trust etc.... against the person, supported with all relevant supporting documents.

4. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

This is my response to you:

1. Is this a licensed contractor? Does he file his audits?

2. If he does choose to blackmail you, then send him a legal notice;

3. If he does not complete his work, file an FIR or atleast an NC against him;

4. Take legal steps if needed;

5. Consult a local lawyer, discuss full facts and take steps.

Gowaal Padavi
Advocate, Mumbai
1919 Answers
5 Consultations

Contact a local architect and obtain in writing extent of work done by him and amount due and payable to him 

 

2) wait for expiry of period mentioned in agreement 

 

3) if contractor fails to complete work in period mentioned in contract then award contract to another designer and sue contractor for damages 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Do not extend period of contract 

 

sue contractor for damages if he fails to complete work on time 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

See after expiry of the agreement you can file a consumer complaint seeking compensation for delay and uncompleted work along with the litigation charges.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

You can first mutually ask to terminate if he fails you can engage another contractor and handover possession to him.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Hello 

Share the copy of the agreement so that we may peruse the terms of the agreement and give you a more concrete advise 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

If the agreement does not talk about the renewal at his instance then you are free to give the contract to some other person. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

You can file consumer complaint against the contractor to recovery the same

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You consult an architect privately and bring him to the site where the construction work is going on.

Get the construction work of the property assessed and obtain his opinion about the approximate time that would be required to complete the construction as per the original plan that you have given to the builder.

If the architect's opinion is that not even 50% work has been completed and it may take more than 6 months beyond the time stipulated by the builder/contractor, then you may issue a legal notice to the contractor communicating your decision to terminate the contract based on the architect's opinion (you can enclose a copy of the opinion given by the architect), and may ask him to return the amount paid in excess to the work he has so far completed (based on the architect's assessment), failing to comply you may drag him to the civil court with a suit for recovery of money.

 

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You can terminate his services even now on the basis of the architect's opinion on all aspects with regard to the status of the construction of work.

Discuss with an advocate as well as an architect on further issues.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

issue a legal notice through an advocate and file complaint before district consumer forum on defeincy of services and claim compensation. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Repudiate the contract you entered with the contractor on account of the breach of contract committed by him.

Do the above by means of a written notice which you must send to him. Also seek damages from the loss caused to you due to the slow pace of his work. After repudiating the contract, bar his entry as well as that of his agents into your under construction premises. Thereupon, you may take up the task of erecting the remaining construction either yourself or appoint a new contractor. 

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

Dear Client 

You can go to civil court for claiming the compensation and money paid by you for work. Also after the completion of period you can hire a new contractor 

You can claim Damages under Section 73 which clearly states that the party who has suffered, since the other party has broken promises, can claim compensation for loss or damages caused to them in the normal course of business.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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