IR & LEGAL UPDATE TAKING OVER INCOMPLETE WORKS What should you do if you are approached by an owner who needs a builder to take over their project which has been left incomplete by another builder? Are there risks? Or is it as simple as picking up from where the last guy left off? Sometimes building jobs can beleft incomplete or unfinished. Thismay be the result of an unresolveddispute with an owner or the builder having gone into administration or liquidation. While it may appear easy or low-risk to finish a home that is already 80 or 90 per cent complete, there are a number of risks that you should be aware of – and some protective measures which you should take – before committing to this type of project. Risks A key risk in taking over another builder’s work is that you may be considered by the owner (and subsequent owners of the property) to have accepted responsibility for the entire job, including works undertaken Ask for something in writing to support the base works undertaken prior to you. by the former builder. You might then find this and insert it into the contract Further, already completed works should yourself liable for rectifying any defective • Inspect for defects: before signing a new be listed as ‘excluded items’ under works performed by the former builder. contract or providing a quote, arrange your contract Another (related) risk is that the base a time with the client for you (as well as • Outline all works: ensure a very clear works completed by the former builder a surveyor or engineer) to document, scope of works is included in your may be defective and/or not up to industry examine, inspect and test the works. contract describing exactly what works standards. This, in turn, may impair the Also where possible take photos of the you will be undertaking to show where quality of your work and require rectification existing works to appendix to the newly your works start and finish work to be undertaken at your own cost. signed building contract • Insure yourself: you will need to take out A common example is where you are • Independent inspection: you should warranty insurance to cover the value of contracted to carry out painting work on also request that the potential client works under your contract. Note that the walls built by a former builder and the walls commission an independent building warranty insurance of the former builder are defective, which leads to subsequent inspection of the works completed by the will not cover your works. painting defects in your work. former builder, checking athe orks and making enquiry of works that are invisible Note: in the event that the former builder Protection measures such as waterproofing, damp proofing did not have warranty insurance for the There are a number of steps you can take and termite barriers (this may include project (or an invalid policy of insurance), to assist in protecting yourself when taking the production of any certificates/council be weary of a request that you take out over incomplete building work: inspections if these works have already insurance for the whole project. •Preliminaries: ensure that the original been done) You should only be insuring the scope of contract is at an end and that the client • Contract clause: include a clause in works that you are engaged to complete, is responsible for any legal or financial the contract excluding you for any not taking on liability for those works that claims made by the former builder. responsibility or liability with respect to you did not perform. BUILDING NEWS ISSUE 1/2019P17