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Across the street from my place in York is a beautiful Georgian building that until last year operated as a youth hostel. Unfortunately it was so awful - no central heating, terrible private bar, dingy showers - that it folded.
About 8 months ago the property was purchased with the intention of renovating
and reopening as a hostel once again. Scaffolding went up, along with the usual placards advertising the name of the construction firm, and work promptly ground to a halt. The hostel was supposed to reopen last month, but now it looks like it may be well into the new year before the doors open.
I've spoken to the new owner about the delays and it seems the construction workers are just terrible. They show up late (if at all) with the wrong equipment for the job, and have already made several costly and time consuming mistakes that have caused building code infractions. Unfortunately they're so far into the job that to fire them and employ another firm would be impractical. Meanwhile, the construction firm gets free advertising on the front of the building. Whether they do a good or bad job they increase their name recognition.
The idea
Here's a hypothetical. You hire Jones and Sons to renovate your building. You work out and agree to a budget and a timeframe, and this agreement is submitted to an impartial governing body (i.e. the National Association of Home Builders in the US, or the National Federation of Builders in the UK).
The work begins, scaffolding is put in place, and Jones and Sons erect a white advertising placard to the building. The placard confirms that the job is being tracked by the relevant governing body (perhaps using a recognisable symbol), and the agreed completion date is prominently displayed.
When the work is completed - on time and on budget - Jones and Sons may leave a bright green placard for an agreed period of time on the building, advertising the successful completion of the job by their firm.
If, however, the job runs over budget or past deadline the sign is removed and replaced with a bright red sign to advertise the failure. This sign remains until the work is completed, at which time it can be removed.
In the event of unavoidable, faultless delays or cost overruns (as can sometimes be the case), the governing body can step in and arbitrate. If they believe the delay/cost overrun is justified they will amend the agreement accordingly and the construction firm will not be penalised.
Most importantly - and this is where the construction firms really benefit from their good work - the governing body records successful and unsuccessful completions on a searchable database, allowing consumers to view the reliability record of their prospective builders. Naturally, those firms with a perfect record will be more prominently placed, while those with poor records will be relegated.
Many building federations already have a searchable database in place [link], so with a little modification this system could be implemented quite easily.
One final point. This would be a voluntary opt-in system for those construction firms who choose to be included. Such opt-in systems have proven effective in the past - for instance, the Federation of Master Builders in the UK allows builders to improve their reputations (and gain a valuable business advantage) by submitting to a strict code of conduct. Only those who abide by this code can advertise themselves as Master Builders [link].
Master Builders
http://www.findabui...co.uk/why/index.asp
Why choose an FMB member? [sambwiches, Oct 03 2008]
National Federation of Builders
http://www.builders...ch/contractors.aspx
Serachable database for construction firms [sambwiches, Oct 03 2008]
[link]
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It's unlikely a federation of any profession will keep a list of its less reputable memebers, even if it's a quasi-governmental body. |
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Since reputable builders will be licensed, your best bet is to look for a licensed builder. If you end up having a beef with that builder, talk to the licensing organization. If enough people complain, the builder may get his license revoked. |
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Back in history, there was a similar organisation for people who operated to high standards in the field of placing morsels of food into mousetraps. |
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//Unfortunately they're so far into the job that to fire them and employ another firm would be impractical. // |
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Wanna bet? That sort of thing is commonplace, at least here. Our Building Services Authority keeps a list of dodgy builders, revokes their licences after a few infractions (on a demerit points basis) and tries very hard to protect the public from the arsehole builders who give the industry a bad name. |
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I sacked my brother-in-law from our construction job, took him to the building industry statutory appeals tribunal, got a refund of $65K and warned another client of his, who took similar action. After a third infraction, last year, he is now banned from working as a builder in this country and has gone to New Zealand, where he still holds a valid building licence, to prey upon unsuspecting clients. BSA NZ have been notified of his Oz track record. |
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If the UK regulations don't allow for such action to seek redress against bad builders I would be very surprised indeed. |
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I'm not too familiar with the industry [UB] (my place is a listed building and I'm hardly even allowed to change my sheets without permission), but I assume the UK has similar safeguards and watchdogs to protect against cowboy builders. Incidentally, you must have solid brass balls to go against the family like that. Remind me never to piss you off. |
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One advantage of this system is that you can hold the AGM in a small living room. |
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He broke the law, which I happened to know better than he did (three years of reviving construction companies from administration, receivership and/or provisional liquidation) . At first, when he ran the contract over budget, he tried to get my wife to sign a "revised" contract for an extra $110K, without my knowledge. I found out about that and put a stop to it, so he issued a stop work order on the job, which he then used to try to bully me into signing the "new & improved" contract. |
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What he didn't reckon on was that I knew the owner's rights and that the owner may still proceed with work if they have a building licence (I became a co-director of my business partner's construction company for 6 months, using his licence to complete the job). Touche. |
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Then, when I went to get the finished work certified he issued threats to the certifier, who is supposed to be independent, that he would have him blacklisted by his mates in the industry if the guy certfied the work. He had made similar threats to all of the subcontractors working on the job. They hadn't come back and he had not bothered to pay them, blaming me for that. After I took over the job I appointed a new crew of subcontractors (electrician, plumber, roofers, carpenters, concretor... etc.) and had been paying the new subbies directly from my business cashflow. |
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Without a certifier's approval, I couldn't refinance the loans. What he didn't know, that I did, is that only two (not one) people can dismiss the appointed certifier... the builder and the owner. I dismissed the certifier and engaged another one. The new one certified the completed work and was then threatened by boofhead. The new certifier immediately reported him to the BSA for threatening an independent certifier. |
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I refinanced the property, to settle up everyone wo hadn't been paid. He had done a deal with the lawyer who was to handle the drawdown of the settled funds. I checked the letter the bank had received, for settlement instruction, on the day of settlement and discovered that the funds were to be disbursed directly to him, by the lawyer. As is my right as the borrower, I instructed the bank to put the funds into my solicitor's trust account, instead. I then paid out the original subbies and the balance of the original contract to him ($5000), bringing him up to the original $220,000 agreed. He had tried and failed to get the other $70,000 of borrowings that I withheld. |
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After that I appointed a quantity surveyor to audit his records,to establish the value of what he had actually done for me befoe he issued the stop notice. He manhandled the QS once he got to his office, so the QS and I went to the tribunal and got an order, compelling him to deliver up his records. He had destroyed some of them so we sought a hearing and the tribunal investigated and deemed he had to refund $65,000 of the $220K I had paid him. |
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He got very angry and also threatened me, when it all went tits up. Unfortunately my wife and mother-in-law were there when he did it. It left him seriously stranded, with me on the moral high ground and him in the shit. They disowned him and have not spoken to him since June 2005. It's a tough world when you decide to take on people who aren't afraid of you. |
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I sometimes wonder why I went to so much trouble to help him pass his exams for his builder's licence and write his mandatory business plan and contracting schedules in the first place. Fortunately, I never had to tell the BSA that it was me who got him the licence, to start wth. |
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This is pretty much the Freemasons. Of course, their membership costs quite a bit in monthly dues and won't work for the general public. Or atheists. So I guess this idea stands out enough to be different. [+] |
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unabubba, mate its old logic, it doesn't pay to work with family. mainly that its usually how you find out they, like pretty much else in a tight spot, is an arsehole. |
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on the idea, good idea. having the builder publicly disply the status of the job is good. but what I think [UB} is saying is that, the building process itself is complicated. often, its not just the builder's fault things go 'tits up'. having a 'perfect' builder would more or less exclude nearly all builders. from what I know, all builders have problems at all stages, and usually on all jobs. its very rare that a project goes from start to finish without delays (and building contracts have significant number of provisions for this) or cost overruns (same again). these issues are endemic to the process. building is not like a computer, it is still random, seeing into the future is difficult. |
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Holy crap, Una, you tha man! |
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//the building process itself is complicated. often// |
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Very true, and I accept the point that it would be foolish to expect a smooth ride in any but the simplest of jobs. The hope, however, is that this sort of transparency and accountability would help weed out those builders who habitually screw up by taking on more than they can handle, or quote a low figure or unrealistic completion date to secure a job in the knowledge that most customers will just grin and bear it when they inevitably overrun. The governing body who arbitrate the contract would, as industry experts, be perfectly capable of differentiating between a genuine unavoidable delay and other situations. |
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On reflection I think a better idea may be to just give [UB] the names and addresses of anyone who's ever been accused of being a cowboy builder and let him go at them with a lead pipe. |
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//If the UK regulations don't allow for such action to seek redress against bad builders I would be very surprised indeed.
// |
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In Oz you are required to have a license showing that you have completed the relevant training before becoming a builder. In the UK you are only required to say the words "I'm a builder". That's it. Most have a business card but it's not mandatory. |
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Now I know why my dodgy Aussie builder moved to London. |
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//In the UK you are only required to say the words "I'm a builder". //
Or you have to employ a Polish bloke. |
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It wasn't so much that I wanted to destroy his relationship with his family as it was that he had accepted my assistance and charity so often in the past and then turned on me. |
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He knew I was distracted by a dispute with a former business partner who had misappropriated $53,000 while we were on holiday in Europe, a couple of months earlier. He figured it was a good time to skin me for a cool $180K or so, while I was busy looking the other way. Wrong. |
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I knew he was under pressure to settle for two blocks of land that he had bought from a very hard-nosed businessman 12 months earlier. The loan was vendor financed by the guy for a period of 12 months, to give him time to build and sell the houses. He was behind schedule so he used materials and manpower meant for my job to do his own. |
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No lead pipe, just a stubborn insistence that I be treated fairly and respectfully. I had seen builders get into trouble before, so I knew the signs, when he started to get a bit wobbly. |
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I also had the advantage of being the broker who had arranged almost $4M of lending for him (He was good for it while he stuck to commercial work with its high margins) in the 4 years prior to his little stunt. I knew where most of his skeletons were hidden, so it was always going to end badly for him. Because of his background as a bouncer, private security contractor and prison warder he thought he had bigger balls than me, which was a mistake. |
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[sambwiches]... Before you SIGN A CONTRACT (If you don't have a proper contract then you are extremely stupid... like 200+ Vernons or more... and basically fucked before you start) consider these steps. |
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1. Approach Master Builders, or its equivalent in the UK. They'll set you on the right path. |
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2. Ask the builder for references from previous clients. Ring them and ask how the contract went. Trust your instincts. |
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3. Ask to see some previous work. Inspect it and ask the occupant about the experience. |
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4. Take out completion insurance. |
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5. Have the progress payments doled out by a third party, after independent inspection of each stage of the job, to verify that what is claimed is owing. Handle no payment yourself. If you make payments directly to the builder you will no longer be able to "firewall" payment conditions behind your claim they are only made when a third party is satisfied the work has been done and verified suitable to warrant payment. |
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6. If there is to be a variation to the original contract (remember, you have signed one) then it MUST be in writing and you must have both signed your agreement to the terms of the variation document. If you do not do this then refer to the passage in parentheses in the first paragraph, for likely outcomes. |
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7. When the job fucks up... which it almost certainly will, if it involves more than a week's work... call a meeting between yourself, the builder and your friendly lawyer (The one who perused and witnessed the contract). The fuck-up will be much easier to resolve because all pertinent facts will be recorded in the contract, on the variation agreements, the progress payment inspection reports and your daily site diary (In which you recorded EVERY incident, alteration, request, delay, disagreement, variation request and anything else you might possibly need to remember later). |
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That, in a nutshell, is how you find and keep a reliable builder. |
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I just got fleeced for a much smaller amount by a Romanian builder who was doing similar tricks - namely using my money to finance a different build. It seems to be extremely common practice from what I can make out. |
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We'll see what the courts have to say. |
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Good luck with that. I think it's the first thing the bastards learn when they become apprentices. |
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Thanks [UB]. Fortunately at our last meeting I got him to sign a loan agreement for the amount I think he owes me, in exchange for a reference on the quality of his work (I couldn't really vouch for his business practices). I think his options are to pay up or vanish - though sadly I'm expecting option two. |
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I hope you scare the mongrel straight. |
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While I fully support the idea I think you should call it the Confederation of Reliable Builders, or maybe the Reliable Builders Rebel Alliance. I've seen how many lousy contractors there are, sometimes it feels to me like the good guys are definitely in the minority. |
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