Retention, snagging, liquidation

[WWilts]

If a contractor goes into voluntary liquidation after completion but before the agreed 6 month period of retention elapses, 

 

Is the liquidator responsible for paying for correction of any defects that emerge during the 6 months?

Is the liquidator required to wait for the retention money until the 6 months pass?

 

 

[Alan Ambrose]

If this is a tiny company (rather than a larger one that the liquidator might try to find a buyer for) I suggest you simply agree with the liquidator that you will use your retention money to pay for someone else to do the snagging tasks. Theoretically the liquidator could decide to honour the contract - i.e. do the snagging and retrieve the retention, but I suggest the likelihood is low. Hopefully you get a response from the liquidator promptly.

[nod]

Unfortunately companies go in to voluntarily Administration to right off debts More likely you will be at the back of a very long que

[Temp]

I think you would have to write to the company, give them opportunity to rectify within say 14 days or else you will consider them in breach of contract. After those 14 days write again to tell them they are in breach of contract and you will use the retainer to fund the repairs. Send letters recorded delivery to the registered office and the reciever. Keep copies.

 

You probably should get several quotes for the repairs to show they are "reasonable" and don't include anything not a repair in case they are ever questioned.

 

I'm not a lawyer.

 

 

[Ralph]

12 hours ago, WWilts said:

If a contractor goes into voluntary liquidation after completion but before the agreed 6 month period of retention elapses, 

 

Is the liquidator responsible for paying for correction of any defects that emerge during the 6 months?

Is the liquidator required to wait for the retention money until the 6 months pass?

In my experience if you are an unsecured creditor in a liquidation you are getting nothing. We could not even get things like tiles left over as spares. In fact I had to resort to threats to get spare house keys back. 
I also tried to get information on warranties that were put in place by the contractor and got zero response.

They only time I got any real communication from the liquidator was when they came after us for money.