Fly builders operating limited companies

[La Poste]

I don't know where to put this thread so I shall put it here.

My Electric boss has been ripped off three times in the last year and at the moment I am wiring up a very large garage for my friend.
My friend has had extensive building work done with a lot of problems not yet fixed by the builder.

The common theme amongst all this is builders who operate limited companies who then go bust owing tradesmen who have worked for them loads of money and then start up a new building company under a different name with another member of their family as a director.

The law in this country really seems to favour the big man and the tradesman is right at the bottom of the heap.

When a limited company goes bust the first priority in the eyes of the law is any monies left will be paid to the revenue, the tax man and the poor old sparky is bottom of a very long list.

I ask you, when the business laws in this country are so loaded against us as tradesmen how do you cope?

When it's so easy for a building company to wind up, not pay it's debts because it is a limited company and then suddenly morph into a new company under a different name with total impunity from the law.

What do you do when a builder rips you off?

It seems so unfair to me, in fact it seems absolutely corrupt.

What are your thoughts on the way limited company business laws are so abused by members of the building trade?

Thanks.

 

[i=p/u]

Welll if you stick to your payment plan and have a proper one which could require advice from a professional.... Could help

 

[La Poste]

Welll if you stick to your payment plan and have a proper one which could require advice from a professional.... Could help

That's a good point but if a builder decides to go bust then what chance have you got?
It will be very hard to get your money, well the last installment anyway.

 

[i=p/u]

Aye its a doggy dog world when you in the open playing field market, anywork i get is through word of mouth and havent been stitched yet.....

Somone said on here you price the job get 30%deposit 30% first fix and 40% on completion sounds what i will follow

 

[La Poste]

Sounds good.

The 40% is the bit that will be hard to get hold of I guess.

I think my Boss is a bit too trusting, he's old school, he just doesn't expect people to rip him off whereas I on the other hand do.

 

[i=p/u]

No test certificates untill received final payment aswell maybe

 

[D80]

A test cert means little to some though, have handed them to a builder and seen him chuck it in the bin! And know of some other sparks who test nothing and never get asked from it from builders they work for!

 

[Welchyboy]

i am very wary of builders, i got took for about £1500 last year(which i know is not a great deal compared to some companies but im only a sole trader) and it still makes me mad, thing is i was stupid and only knew his first name and mobile number, the job was through a friend so i trusted him, he took some of the other trades for alot more so maybe i got off lightly.
its hard because you need to be able to trust people to a certain extent, i just insist on regular payments now if its a new client and dont let the outstanding cash your owed mount up too much.

 

[Guest123]

No test certificates untill received final payment aswell maybe

By law, you cannot hold an installation certificate to "ransom".

 

[i=p/u]

so come on lenyy, how do you hound the dodgy ones down, and as somone said they dont even test or hand out certificates...

 

[IQ Electrical]

Not that it helps much but a few years back, Revenue & Customs lost its status as a preferred creditor and is now on equal status with all other unsecured creditors including trade, landlord and banks.

 

[La Poste]

From reading this it seems the only thing a tradesman can do is insist on regular payments and refuse to continue any more work until paid.

It's a difficult one, if you hound the builder for money to often you will not get any more work from them and if you don't you may get stitched up at the end.

One old tactic that was used against my boss to keep him working was the promise of lots more work to come.

The builder would say that after this job I have another job for you to start, the old carrot and stick routine.

 

[baldelectrician]

By law, you cannot hold an installation certificate to "ransom".

Yes but you can give a cert that us UNSIGNED, undated and watermarked "copy not valid".
You still have issued a cert and they get a complete one when you are paid

 

[i=p/u]

thats what i ment baldspark, dont sign it!!!