How to deal with this dodgy builder?

Hi all

Would like to get some views in relation to the following:

My aunty just purchased a place (PPOR), which is undergoing some renovations - paint, tiling, new doors, electricals and some other minor things which go with a tidy up. The great thing is - all the hard work was already done - the property came with a new kitchen and relatively new bathroom.

We had referred a few people, including an electrician, tiler, and a painter. The tiler didn't seem interested in the job for some weird reason (we do hope to use him in the future - he was better to deal with than most tradies we have come across, and did a great job for us). The painter I recommended was only on the basis the finishing of his work was great - even though my job didn't go so well.

Subsequently, my aunty came across a "builder" through the internet - who seemed great - and for the ease of not having to manage all tradesmen as she is a single mother, she decided to accept a higher quote, just so that someone else can project manage the reno.

The work started last week - and now my aunty has had to manage it all by herself... all the builder has done is pretty much send in the tiler and the painter.

The builder wanted my aunty to make a "cash" payment to the tiler for the tiling directly - but she refused and advised she has contracted him, and will transfer the payment to him directly, in the bank account quoted by him earlier (I have just found out - he asked her to send the cash to his personal account instead). It appears to be some sort of tax evasion going on there.

Secondly, as you would expect, the painter has been very defensive! He did not turn up yesterday and today! We visited the place over the weekend, and it appears that the finishing is CRAP as.... it appears the walls and doors haven't been prepared and some gaps are visibile - and I am afraid what if the paint peels off the doors in the near future! Also, the painter has advised that one of the doors he cannot paint, and a new door should be installed as the other one is very old, with sticky tapes stuck on it etc... but the builder has advised that it was not part of the initial quote - which is fair enough, but she was happy to pay more for the door. But he just isn’t willing to cooperate.

I think they all thought she was a single mother, she has never renovated before, so she won't be able to tell whether the job done is good or bad, so long as the place looked different.

I feel so bad for her having so many $$$, it has tainted the whole excitement of her moving into the new place. I am sure she has paid more for a service which has been non-existent, as she has had to deal with the painter and the tiler. For some of the work, the painter pointed fingers at the builder, and builder told her to deal with the painter directly – if they could they would charge for lifting the paint brush!

Apparently the builder was throwing tantrums like a child the other day, and kept hanging up on her.... He told her if she had to renovate a place so well, she should have bought a new place.

Now I don't know if the painter will turn up or not, or whether the builder will demand her to pay for the unfinished work. Fair trading is another option - but that takes time!

What would you do?

I have learnt some lessons - word of mouth is a huge thing, use people recommended by others, always get a written quote - covering 'everything', and pay for a good service.

Would really appreciate your input.

Thanks
Mona
 
how much did you pay this builder?

i would get a camera and start taking pictures, documenting phone calls and conversations and quality of work.

In victoria, if a building project it is delayed not due to rain etc, it is normally the builder who has to compensate the owner. i would also be dobbing him into the ATO for tax evasion (ABN, name, builder's registration). One of the trades i reported in the past is currently under investigation by the ATO for doing cash payments and not declaring for like 2 years. Also, depending on the renovation cost you would only pay him 10% and the rest on completion.

If he keeps hanging up on you just make a complaint to consumer affairs. And then message him with a notice that if you do not respond by a certain date that you would be forced to look for an alternate contractor/builder.

i despise trades who demand cash payments and use bullying tactics
 
The cost breakdowns were : $1500 tiling for the lounge (exc tiles), $650 for replacing doors (I believe 3 of them?), $6500 for painting (including new cornices for some corners which have not been done YET!!). All inclusive of GST as per his written quotes.

When she suggested the painting seems to have issues, he said you can't comment till the job is fully done. This to me is a catch 22. As once the job IS done, he'd be like "why didn't you complain before?" and that "the painter's work is done and he won't be returning"; besides his usual rants that "I'm not making any money in this job!".

On receipts..he doesn't seem to have a builder's licence - though he has an ABN.
I assume as a client one has the right to see his license?

Btw Monalisa and I are sisters.

Also...he kept saying the tiler is going to leave if she doesn't pay in full before the job was finished. So my aunty's response was: "He'd either damage the tiles or leave the job half done ...what else would he do?" And that he was not going to get paid for the tiling till it was complete and she was satisfied. He has now been paid for the tiling...

Issues with painting...Not happy at all.
 
yes - you are entitled to see his builders license if he is organizing that many trades.

there are huge penalties for acting as an unregistered builder.
 
How much is the total value of the job? Is the house in NSW? If the total value of the job is over $20K, the builder needs to have home warranty insurance. You'll need to supply these insurance details if you sell the house in the next few years. Not sure of the finer details, but this is the basics.....

http://www.fairtrading.nsw.gov.au/Tradespeople/Home_warranty_insurance.html

From 1 February 2012, home warranty insurance is required to be obtained where the contract price is over $20,000 or, if the contract price is not known, the reasonable market cost of the labour and materials involved is over $20,000.

Where the contract price or the reasonable market cost of the labour and materials involved does not exceed the above threshold, there is no legal requirement for home warranty insurance to be obtained.

Contractors who carry out residential building work must still hold an appropriate licence with Fair Trading where the labour and materials involved are valued at over $1,000.

Persons who contract and/or carry out specialist work (ie. electrical wiring, plumbing, gas-fitting, air-conditioning and refrigeration) require a licence regardless of the value of the work
 
yes - you are entitled to see his builders license if he is organizing that many trades.

there are huge penalties for acting as an unregistered builder.

Shouldn't his website say the license? At the rate he's going and the behaviour he's shown it seems he may not even show his builder's license.

Is there a database matching ABN with builder's licenses?
 
His business name includes "Building Services" - so I am guessing he may have one. I will call fair trading tomorrow and check with them - as I am unable to find it through the search function.
 
I emailed the guy over night - he doesn't know me. He emailed back saying he has a carpenter's license and not builder's license. To me then his business name is misleading. Is this legal? I.e him acting as a builder? And the fact he can be called back in the future in case the patching /painting works are doddgy?
 
Does a person need a builders licence to paint, tile and replace doors? I would think probably not.

in VIC - you don't need a license to do a single trade - say only carpentry or painting. you could have a million dollar contract in painting and it would still be ok. however once you do multi-trade like organizing painters, tilers, carpentry, handyman jobs and the value of the materials and labour is above 5000 you essentially take a role of a builder and requires you to be registered. i'm 100% sure abt this.

in NSW - it could be different
 
The cost breakdowns were : $1500 tiling for the lounge (exc tiles), $650 for replacing doors (I believe 3 of them?), $6500 for painting (including new cornices for some corners which have not been done YET!!). All inclusive of GST as per his written quotes.


maybe its a sydney thing but $1500 for tiling, and $6500 for painting seems awfully expensive,

assume $25 per sqm for labour for tiling, 5mx5m, =$625 OR going down the per hour route (dont want to start another debate like other threads, but assume $50 per hour, should take 1-2 days to tile one large room, thats $400 plus glues etc.

painting, assume it takes 5 days, thats $2000 in labour per hour + $500 in paint, or even at 2 weeks thats $4000 in labour + $500 in paint
 
I think these costs are typical and in line with other quotes received. I'm sure people get it cheaper. But this guy was trusted as he suggested he was going to be the project manager.

Any takers on whether this is lawful in NSW. Thanks Melbournian for the input...hoping NSW has something similar.
 
Ok, this is what I have found...

"You must have a contractor licence to contract, subcontract or advertise to do:

-residential building work where the total cost of labour and materials is more than $1,000
-electrical wiring work
-plumbing, draining and gas fitting work
-air conditioning and refrigeration work (except plug-in appliances).

Caution. By law, your licence number must be shown on all advertising, stationery and signage.

If you work without the proper licence, you are breaking the law and can be fined. Also, you will be unable to enforce a contract for the work against the other party."

http://www.fairtrading.nsw.gov.au/Tradespeople/Home_building_licensing.html
 
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Ok, this is what I have found...

"You must have a contractor licence to contract, subcontract or advertise to do:

-residential building work where the total cost of labour and materials is more than $1,000
-electrical wiring work
-plumbing, draining and gas fitting work
-air conditioning and refrigeration work (except plug-in appliances).

Caution. By law, your licence number must be shown on all advertising, stationery and signage.

If you work without the proper licence, you are breaking the law and can be fined. Also, you will be unable to enforce a contract for the work against the other party."

Now, what does "building work" mean?
 
Now, what does "building work" mean?

residential building work means any work involved in, or involved in co-ordinating or supervising any work involved in:
(a) the construction of a dwelling, or
(b) the making of alterations or additions to a dwelling, or
(c) the repairing, renovation, decoration or protective treatment of a
dwelling.

Section three of the Home Building Act 1989 No 147
 
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