Can I Sack My Builder for Poor Work?

Finding defects in building work does not necessarily mean that you can dismiss the builder immediately. You may have a right to require the problems to be put right, or to claim compensation, without having a right to bring the builder's work under the contract to an end. Getting that distinction right matters before you stop paying or employ a different builder.

What was Agreed?

The first question is what the builder was required to do. The contract terms, drawings, specifications and any agreed changes / variations may all help establish the scope and standard of the work. A contract can exist even where there is no formal signed agreement.

A disappointing result is not necessarily a breach of contract, if the builder has supplied what was agreed and has done so without falling below the standards required by the contract and/or expected by a reasonably competent builder. Perfection is not normally required from a builder.

Conversely, compliance with a drawing does not answer every complaint: the builder may also have obligations concerning workmanship, materials or its own design responsibilities. In other words, the way in which the drawing was turned into reality may be just as important as whether the reality matches the drawing.

An independent surveyor or engineer can help identify what has gone wrong and who is responsible.

What are the Termination Terms and Conditions?

Your contract may identify particular defaults which allow you to terminate the builder's employment. It may require a written warning, a period for the builder to remedy the problem, and a further notice before termination takes effect.

Those requirements matter. A general complaint by email may not be good enough to comprise a contractual default notice. The contract may specify who must receive a notice and how it must be delivered, as well as what it must contain. A right to terminate for a repeated default may also depend on what happened following notification of an earlier default: in particular, whether the builder cured the breach.

How Serious is the Breach?

There may also be a right to terminate at common law, separate to any contractual right(s) to terminate the exist. This depends on the specific obligation broken and, often, the seriousness of both the breach and its consequences.

Some obligations are sufficiently important that a breach of them gives an automatic right to terminate. For many others, the question is whether the breach deprives you of substantially the whole benefit you were meant to receive under the contract. This is a high threshold. Lawyers call a breach which justifies termination a "repudiatory breach".

A small number of repairable snagging items will usually present a different situation from extensive structural defects which undermine the purpose of the project. The assessment must consider the contract and the position when termination is proposed. The fact that work is defective, expensive to repair or deliberately carried out incorrectly does not by itself settle the question.

Do I Need to Give the Builder a Second Chance?

Homeowners buying building services for private purposes will commonly have consumer rights. These may include requiring defective services to be performed again at the builder's expense, within a reasonable time and without significant inconvenience. A price reduction may be available in specified circumstances.

These remedies do not mean that every defect requires you to retain the builder indefinitely. Nor do they create an automatic right to dismiss it. Whether another opportunity is required depends on the remedy being pursued, the contract terms, and the facts. Refusing a reasonable offer to put matters right can also affect the compensation recoverable later.

What Happens if I Sack the Builder Too Soon?

Excluding a builder without a proper legal basis may itself be a serious breach. The builder could claim payment for work already carried out and compensation for the work it has lost, subject to the contract and the circumstances.

Before taking that step, preserve the evidence. Photograph the work, retain correspondence and obtain suitable advice before defects are covered up or removed. Urgent safety work may need immediate attention, but record why it was necessary and what it involved.

If you need help deciding whether your builder’s actions justify terminating your building contract, contact Hamshaw to discuss the issues you’re experiencing, the contract terms, and the options available to you.