NSW builder underestimated cost, inflates invoices, gives false invoice, removes tools from site

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Roezetta

Member
27 October 2020
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Any advise on the following please.if I have left out any vital information, please advise...
I engaged the builder to convert my investment property, a terrace house into a 3 room boarding house with internal renovation work only.
The renovation was to be developed in two stages, with a budget of $110 k available for first stage.
The first stage, being two rooms, and the second stage, one room.
My budget was discussed with the builder, with a second inspection made of the site. Builder confirms Cost Plus contract for $110k.
Builder commences works and provides invoices of $27 k for 9 days work.

The invoices represent 1/4 of the cost of the contract and 5% of the works. Due for completion in 3 months.
This equates to $270k by completion before any variations.I estimated for variations of 5%, 10% and 20% but certainly not 270%.

Red flags raised from invoices, include some of the following:
Builder placed pause on works, plus remove tools, prior to any payment being late, as I still had 5 days left to pay.
Charged 4 hours for dropping off house keys.
4.5 hrs to supervise licensed plumber and electrician.
Charged full day for site manager to supervise demolition work.
Charged two hours x 2 labourers( $377)to pickup materials instead of $58 delivery fee.
Charged for disconnection and removal of gas heaters, however I had to employ a plumber to disconnect and remove these when I onsold them. Photos show heaters still intact after being invoiced.
Builder blames the discrepancies for invoices on human error due to staff having a recent medical procedure.
I am disputing the amount being claimed by the builder for the following reasons:
Builder failed to use due diligence by greatly under estimating the cost of works, as under a Cost Plus Contract, to provide me with a fair and reasonable estimate for the cost of the works, which he neglected to do. By doing so, this would in effect cause me, to run out of money within 4 weeks based on builder's costs and I did not wish to be left with a house less than half finished if I continued with him.
He failed to safeguard the house, leaving the balcony and security doors, wide open at nights and susceptible to burlgary, malicious damage, squatting, and rain He failed to protect existing finishes causing damage to surface areas in the kitchen and living room.
Builder caused destructive damage to house when he bolted up the front and back doors, although he held the only set of house keys, caused malicious damage to 3 doors, wooden floor, garage door and smashed through the glass door in the back section of the house.
He simply could have just changed the locks as he prevented access for he's own team and affected the safety of the works.
All the areas mentioned above were not to be renovated as they were not in the scheduled works.
Builder failed to comply with Clause 26(ii) by not proceeding with the works with due diligence or in a competent manner with regard to the circumstances of the contract works.
Builder had not addressed my concerns raised regarding pricing, labor hours, the overuse of skilled tradespeople for certain jobs, lack of rubbish management, scheduled rates and how he arrived at these labor costs without the use of a sign in, sign out application. He did not provide me with work sheets for the planned works ahead of time. Builder had not provided quotes for plumbing and electrical work.
He failed to address my concerns provided via email on 9/02/2020 and 20/02/2020, 6/3/2020, 12/03/2020 and 17/03/2020 along with my intention to terimnate the contract on 10/02/2020.in accordance with Clause 24.

Builder was witnessed removing tools from the site on 10/2/20.
I confirmed my termination again on 24/2/2020 and 6/03/2020. These were ignored by Builder.
On 5 March 2020, I made the payment of $18,171.20. plus provided a $1998 credit of the home warranty insurance to the builder and outlined the deductions for the damages to the front door, wooden floor, glass door and garage door. Change of locks for all house keys provided. Cost of no protection to existing surfaces plus their damages. Parking permits, and PC items held by Builder. Builder failed to provide PI or PL Insurances in replacement for home warranty Insurance.
I had filled a police report against the builder for destruction of property as he destroyed areas not under renovation. And have made a formal complaint to the Master Builders Association of NSW.

Thankyou