Persue builder with laywer or not ?

[arranp]

The builder to date, has received 1.6 million baht in staged payments, but has completed only 1.2 million baht worth of work.

He now tells me his company has negative equity and he needs another 100k to continue the build. The contractual price is 2.3 million baht complete.

Is it worth paying a lawyer to pursue him or would it be cheaper to use the money instead on finishing the house ?

[Shastadad]

No, it is not worth hiring a lawyer here in Thailand. In the western world where they will work on a contingency basis it is worth it, but here in Thailand all that will happen is you will just be throwing good money after bad

[Mike Judd]

That's a lesson I thought all of our Builders, present and future, would have learnt by now, never pay in advance if it's at all possible , O.K. with materials that you order and have delivered, but even that is a sign that his credit isn't any good if he is a fairly large builder. Promising to pay promptly for all work done and finished should be sufficient . Even in Western countries with legal contracts you have to be wary as going to court can be a no win exercise in the end.

[Maseratimartin]

There is one thing you can do...in case the builder owns some land!

Accept the further payment, but demand his land paper for safety and register this action at district office.

If he is willing it might be a way forward...if not, you know the answer!

[Ians]

Agree with Maseratimartin, if you wish to proceed with this guy, advanced payment and job completion to your satisfaction against land, motor vehicle or other tangible property.

[Mike Judd]

The only reason I can think of in that sort of situation, is the builder is already in debt for what ever reason on his part. As said his credit is bad with suppliers if he can't get materials even delivered. Don't forget he is probably getting a discount, but if he wants to forgo that little earner by having you pay on delivery, that's what I would do. I have plenty of materials delivered by local suppliers and pay them later, so if he can't as a Thai, then there is only one reason, credit risk.! Then we come to the labour side, he doesn't pay any one until after the work is done, if then, so what does he want excessive up front payments for ? to pay gambling debts, or just trying to Fleece Farangs.? I think we all get dudded at least once in our lifetime, hopefully it's not too an expensive lesson when it happens.

[BKKBILL]

Thing is even if you got a lawyer and won the case all you get is a judgement then you have to collect. It really is a no win all around.

As for getting a chanote you would probably have to get in line behind the loan sharks.

As Sunpax suggested try to dole out small amounts after some work is done with the intent of finally getting ahead of the game.

[jazzman]

The builder to date, has received 1.6 million baht in staged payments, but has completed only 1.2 million baht worth of work.

He now tells me his company has negative equity and he needs another 100k to continue the build. The contractual price is 2.3 million baht complete.

Is it worth paying a lawyer to pursue him or would it be cheaper to use the money instead on finishing the house ?

Think yourself lucky. I have a Swedish friend who who ordered three luxury houses (22m baht each) in 2007 as an investment on an exclusive beach front in the south from, yes, a Swedish , Thailand based real estate company. The first two houses were completed - after a fashion - but the third one is now FOUR years late. The work is about 55% completed with 75% of the money paid up front - and the 30-year lease on the land all paid. The developer has finally admitted that he has no money left to complete and has asked his client for an interest-free loan!

Needless to say, the client has told him to stuff it and has found another contractor to do the completion. There is no point in taking it to law as the developer will simply declare bankruptcy. All the land 'he' owns and has been paid rent for is of course in the name of his Thai wife and not the 'development' company which doesn't even own a pickaxe and shovel. All he owns is a posh website - what a bubble ...

[geordie]

You could interpret the advice above as get another builder but no guarantee they will not do the same not many builders will pick up someone else,s mess if you have a line of credit with local suppliers you could with his co-operation run it as you being the main contractor pay the wages weekly and order the materials yourself as required explain to him that at the end he will get any balance due on the contract price he may co-operate if not you do need to find a new builder or a willing group of workers and supervise yourself

[Nawty]

I can recommend an awesome group of lawyers in Pattaya NOT to go near if you are interested !!!

[jazzman]

Are there any honest lawyers? I remember a case not so long ago where a struck-off farang lawyer was doing 75 baht usufructs here in Isan and charging his clients Baht 22,000 for a 1-hour thing at the local land office. After I went and spoke to him waving a fax of a certain piece of paper I had sent to me from his country, he stopped doing it.

The boot is sometimes on the other foot: I know of several instances where genuine contractors have done a good job only for the farang customer to abscond to America or Australia just before the final payment leaving his poor Thai 'wife ' penniless and holding the chanote and the can with the bank breathing down her neck , and the contractor out of pocket - usually, the final payment is the one that represents any actual profit on the job.

Whether a service provider or client, the cost of going to court to get money off people is often just not worth it. There used to be a programme on British TV about cowboy builders, and it was difficult enough to get them to cough up - time something was done about cowboy customers. TIT.