building subcontractor rights and bonding
I own a house that was supposed to be renovated by a contractor. I paid him all of the money due under the contract, however he did not finish the project. He has now "ceased to do business", but has not gone into administration or bankruptcy. He has also failed to pay subcontractors and a few of them are now threatening to get county court judgments against me, as the owner, even though I have never met them and never entered a contract with them. Some of the work that the subcontractors did is beyond the scope of work in the contract, but they claim that the contractor asked them to do the work.
What rights do the subcontractors have against me and my property? Can they get a CCJ even though they do not have a contract with me directly?
In the contract, the contractor confirmed that his work was bonded for up to 5 million pounds. Do the subcontractors have the right to get paid under this bond? Do I have the right to get my money back from the contractor under this bond?
If the contractor has "ceased trading" before completing the job then the contract has been "frustrated" (meaning became impossible to complete). There is a law to help you here. The Law reform Frustrated Contracts Act 1943. basically the first 2 or 3 sections says that, where money was due, it is no longer due. where you have paid in advance that money is recoverable . You could get a freezing order (in essence stopping him getting his own moey until it has been paid to you ) see a solicitor, you have a very strong case against the contractor. As for the subcontractors, unless you hired them personally then they should be chasing the contractor not you. You could get an injunction against them very easily. again a good case. Most solicitors will give you a free first meeting. Good luck
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