QLD Seeking payment for contract, builder liquidationj

Discussion in 'Commercial Law Forum' started by 7and3, 12 March 2018.

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  1. 7and3

    7and3 Well-Known Member

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    Hi,

    We are a kit home supplier and have an independent contract to our client for the supply of the kit home.

    The client has a separate contract with a builder for construction and part way though the construction the builder took over payment disbursement and started paying us rather than it coming from our client. Apparently this was an arrangement made with the client and her finance company.

    The builder has gone in to liquidation and the client is left high and dry. We have an outstanding account that will conclude our dealings with the client however the bank will not give the client further funding until the authorities have dealt with everything for an outcome.

    Apparently the last draw down of funds from the bank to the builder was to include our final payment.

    We are not contracted to the builder at all or the bank, just wondering what might be suggested. We currently have materials that have been installed and are on site that remain unpaid for.

    Much thanks.
     
  2. Clancy

    Clancy Well-Known Member

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    The builder is not your concern, and the bank is not your concern. Your contract is with the owner, however, you want a solution to the problem?

    Why not try to work with the owner? Ask if your legal team can help the owner with their building contract?

    Usually the bank funds the construction based on construction progress correct? So try to help the owner find ways of continuing construction?

    The alternative to the above is that you will have to take the owner to court and force the sale of the unfinished property. Chances are that the bank will get first priority and you may get nothing.... or legal fees savagely diminish recovered funds.
     
  3. 7and3

    7and3 Well-Known Member

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    Thanks Clancy, you have advised much as I suspected to be correct. I am saddened for the client and have certainly done what you have suggested in good faith to keep the build going. She is currently awaiting an outcome from building authorities in the hope they will provide funds from what I assume is insurance.
    We are on good terms so I will await the outcome and go from there.
    My main uncertainty was with regards contracts and who is responsible to who which you have kindly clarified.
    Thanks again.
     
  4. Clancy

    Clancy Well-Known Member

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    Not withstanding the advice you get on this website is not legal advice - even if the person responding is a lawyer (which i am not).
     
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