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Old 21.04.2011, 07:03
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Tricky situation [with contractor/sub contractors]- What to do?

* Developer who we have signed contract with uses one main supplier for the building project.
* Builder undertakes the structure of the building and uses sub contractors for electrics, kitchen, flooring etc.
* Contract states we pay the sub contractor price for changes or improvements + 20%

No issue with the above and seemed straight forward until:

- Builder re-types invoices completely
- Sub contractors cannot discuss prices only budget you have to spend
- One sub contractor going nuts because they are telling us that is not the prices they are charging.
- Sub contractors bound by contract not to discuss prices with us only budget.

Wife had meeting with person from building company who does the invoicing who offered to forget an item or two on the invoices but still supply them, if we keep quiet and do not tell anyone else. Complaint to Developer lead to building company doctoring the original from supplier, which over the phone sub contractor confirmed but again cannot confirm in email due to contract with builder.

Anyone else been in this sort of situation and advice how to deal with it?
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Old 21.04.2011, 07:16
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Re: Tricky situation - What to do?

I haven't been in this exact situation. Our developer/architect added a 7.5% Honorar (or fee) to each price quoted. Additionally they most surely received a discount from the supplies off the prices wee were quoted.

However, your wife appears to have found the solution...
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Old 21.04.2011, 08:42
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Re: Tricky situation - What to do?

If one company is forging or changing documents to mislead you, or mislead others, it is a criminal offence.
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Old 21.04.2011, 23:54
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Re: Tricky situation [with contractor/sub contractors]- What to do?

Update:

Brief conversation with lawyer today confirms that we have a right to see the original sub-contractor invoice. Have to wait until next week to provide more details and get the correct legal view on this.

Just to clarify, the contract states we should pay:

sub-contractor invoice + 20%

What is actually happening is:

sub-contractor invoice + added amount and then 20% on top of all this, the electrical sub-contractors are complaining bitterly that the builder is making more money than them. In addition customers are complaining to them, which is not really fair.

Will give an update as and when events unfold.
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Old 22.04.2011, 00:04
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Re: Tricky situation [with contractor/sub contractors]- What to do?

Turn them all in. Insist on an audit and tell all the other buyers about it. This is another reason housing is so expensive in Geneva.
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Old 22.04.2011, 07:37
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Re: Tricky situation [with contractor/sub contractors]- What to do?

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Turn them all in. Insist on an audit and tell all the other buyers about it. This is another reason housing is so expensive in Geneva.
Agree, however I need to do this properly from a legal point of view. I believe the employee(s) of the builder have put themselves in a dangerous position because they have altered an original document, which clearly puts their actions to being more than an administrative mistake.

The former can be dismissed quite easily but the later has much worse consequences for them. I am really disappointed in the developers that they did not carry out proper due diligence. Which really begs the question, do they know it is happening and feel it is acceptable.
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Old 22.04.2011, 15:26
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Re: Tricky situation [with contractor/sub contractors]- What to do?

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I am really disappointed in the developers that they did not carry out proper due diligence. Which really begs the question, do they know it is happening and feel it is acceptable.
Or maybe they feel they don't have any option. My guess would be they know and probably are getting a bit of a kick back. But let's not be cynical. I could be just the one company that's the problem. I'd talk to the neighbors. Maybe one is a lawyer!

Good luck.
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