House Building can be a high risk business…………..so what happens if the builder of your new house goes bust?
Your house building contract should have clauses included for the eventuality of the builder becoming insolvent. Read the contract carefully but make sure you get in touch with your solicitor.
There should also be [read more...]
Well if you have followed the advice of the previous Bankruptcy Post you should have stopped all payments and made the site secure, to protect the money you have previously paid.
The next step is to get all the information about the build together including:
The original contract documents including, The Drawings and, The [read more...]
So the builder has become insolvent and the house is half built…………..what are the financial implications?
To finish a partially built project using another builder is going to cost more than if your original builder finished the project. For an idea of possible costs see Is The Insurance Enough?
Builders don’t like taking over half [read more...]
I have previously talked about dealing with the mess when a builder goes bust.
To make the financial aspects clearer a worked example follows:
This is based on a contract for a house to be built for $300,000.
A typical building insurance is 20% of the contract cost so it will [read more...]
If your new house is under construction a typical procedure to finish the house with the insurer is:
The insurer should appoint a building consultant. The consultant will inspect the house and work out the scope of works to complete the house. The scope will be passed to you for acceptance. Three quote will be [read more...]