Backing out of Building contract
Discussion
I signed a contract 4 weeks ago with a conservatory firm to build a sun lounge at the rear of my house. I paid a £1350 deposit at the time of signing, against a build value of £23k.
Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Guffy said:
I signed a contract 4 weeks ago with a conservatory firm to build a sun lounge at the rear of my house. I paid a £1350 deposit at the time of signing, against a build value of £23k.
Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Is it in there that you have to pay this if you cancel? If so, pay it. Is it a "minimum of 15%" or "15%". Is it to cover their costs incurred?Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Type the clause out on here and I'll take a look.
And yes, they will.
Edited by Soovy on Tuesday 29th June 13:37
Soovy said:
Guffy said:
I signed a contract 4 weeks ago with a conservatory firm to build a sun lounge at the rear of my house. I paid a £1350 deposit at the time of signing, against a build value of £23k.
Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Is it in there that you have to pay this if you cancel? If so, pay it. Is it a "minimum of 15%" or "15%". Is it to cover their costs incurred?Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Type the clause out on here and I'll take a look.
And yes, they will.
Edited by Soovy on Tuesday 29th June 13:37
I was thinking that there wouldn't be any appreicable costs thus far, bar some site drawings.
Here's the contract reference..
If you wish to cancel the contract after a period of 7 days it shall be at our discretion whether we accept such cancellation. If we do, we shall send you an invoice comprising our loss arising from the cancellation and you will be obliged to pay this within 7 days of the intimation of the invoice. Our loss will be based upon the outlays for materials which have incurred administration costs, labour costs and loss of profit to and including the date of cancellation. A minimum charge for such a cancellation will be 15% of the total contract value.
Guffy said:
Soovy said:
Guffy said:
I signed a contract 4 weeks ago with a conservatory firm to build a sun lounge at the rear of my house. I paid a £1350 deposit at the time of signing, against a build value of £23k.
Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Is it in there that you have to pay this if you cancel? If so, pay it. Is it a "minimum of 15%" or "15%". Is it to cover their costs incurred?Their Architect has created site plans for the planning application, which I’m supposed to approve before it goes to planning and building control.
For one reason and another, I don’t want to go ahead with the build. Obviously I’ll lose the deposit, but looking at the small print, they want 15% as a minimum if I cancel the contract after 7 days of signing.
Bearing in mind that we’re months away from even lifting a shovel, is the 15% cancellation fee reasonable and would a company typically chase this kind of non-payment through the small claims court?
Type the clause out on here and I'll take a look.
And yes, they will.
Edited by Soovy on Tuesday 29th June 13:37
I was thinking that there wouldn't be any appreicable costs thus far, bar some site drawings.
Here's the contract reference..
If you wish to cancel the contract after a period of 7 days it shall be at our discretion whether we accept such cancellation. If we do, we shall send you an invoice comprising our loss arising from the cancellation and you will be obliged to pay this within 7 days of the intimation of the invoice. Our loss will be based upon the outlays for materials which have incurred administration costs, labour costs and loss of profit to and including the date of cancellation. A minimum charge for such a cancellation will be 15% of the total contract value.
They can refuse to cancel, in which case you're bu66ered. Or they can agree to cancel, but they can then send you a bill (a minimum of 15%) made up of costs incurred, admin costs blah blah blah. Expect to get a bill for about 50% of the overall cost.
I'd refuse to pay, and see if they come after you. You might get lucky.
garyhun said:
Guffy said:
garyhun said:
Uhum, I know this is a wacky idea, but, uhum.... have you asked the company involved?
Well i am trying 
Have left a message for them to call me back, but while i'm waiting thought i would try a bit of PH opinion.
Guffy said:
garyhun said:
Guffy said:
garyhun said:
Uhum, I know this is a wacky idea, but, uhum.... have you asked the company involved?
Well i am trying Have left a message for them to call me back, but while i'm waiting thought i would try a bit of PH opinion.You might get lucky.
Guffy said:
garyhun said:
Guffy said:
garyhun said:
Uhum, I know this is a wacky idea, but, uhum.... have you asked the company involved?
Well i am trying Have left a message for them to call me back, but while i'm waiting thought i would try a bit of PH opinion.A contract is a contract though.
My reading is that the losses part of the clause is certainly correct, but the 15% part seems to be a guidance figure of this rather than a separate term in itself - or it certainly reads that way to me. Either way that would have been £3600, so you are being charged less.
They already have £1500 of your money, so you could call their bluff and see if they sue you. In that scenario though they would be put to proof on what these losses actually are. They might baulk at this, but on the other hand if they are going to the hassle, they could also submit a full claim for losses which might end up being much more.
It is a difficult situation. Of course, they want you to go ahead, and want you to reconsider throwing that amount of money away.
If you wanted to play hardball, your best scenario would be to call their bluff out as long as possible until final warnings of legal action arrive. At that point you could send a full and final offer for an extra £500 or whatever if needed.
Thanks for the feedback.
I was thinking about reaching a compromise with them..
Part of the original contract was to replace 3 front windows, i would have replaced the rest providing the founds didn't require more excavation than planned during the extension build. So maybe if i request a contract amendment rather than a cancellation and pay to have all my windows changed instead. At least they still get a sale?
I was thinking about reaching a compromise with them..
Part of the original contract was to replace 3 front windows, i would have replaced the rest providing the founds didn't require more excavation than planned during the extension build. So maybe if i request a contract amendment rather than a cancellation and pay to have all my windows changed instead. At least they still get a sale?
Guffy said:
For one reason and another,
You're going to take this the wrong way, but you need to clarrify this?You waited four weeks to cancel the order for reasons that, based upon the above, could be taken as a whim. Regardless of what may or not feel the company has done, you signed on the dotted line agreeing to this clause.
Is it a reasonable clause is the question I'd raise.
From a business point of view, I'd just see you as a difficult client who'll never be happy and after something for nothing - free Planning Consent????.
If there has been a signifficant change to your situation - ie a serious, personal tradgedy - that prevents your forefilling the contract then I'd chat, informally, to the boss of the company. If it's a case that you've found someone cheaper because you didn't think things through properly/reasonably then you're not in a strong position either morally or legally. Remember the two are very different.
Please read this as a neutral view on the situation you have described it. If you genuinely can't forefill the contract then so be it. You can't get blood from a stone. If you've just changed your mind then you owe the terms of the contract. How would you feel if your employer / clients said they wouldn't pay you because they'd changed their minds?
mk1fan said:
Guffy said:
For one reason and another,
You're going to take this the wrong way, but you need to clarrify this?You waited four weeks to cancel the order for reasons that, based upon the above, could be taken as a whim. Regardless of what may or not feel the company has done, you signed on the dotted line agreeing to this clause.
Is it a reasonable clause is the question I'd raise.
From a business point of view, I'd just see you as a difficult client who'll never be happy and after something for nothing - free Planning Consent????.
If there has been a signifficant change to your situation - ie a serious, personal tradgedy - that prevents your forefilling the contract then I'd chat, informally, to the boss of the company. If it's a case that you've found someone cheaper because you didn't think things through properly/reasonably then you're not in a strong position either morally or legally. Remember the two are very different.
Please read this as a neutral view on the situation you have described it. If you genuinely can't forefill the contract then so be it. You can't get blood from a stone. If you've just changed your mind then you owe the terms of the contract. How would you feel if your employer / clients said they wouldn't pay you because they'd changed their minds?
I have spoken to them again and they are willing to negotiate on me having all my windows replaced instead, although i suspect i'll be paying triple price for them!
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