Builders have "cashflow problems" and I'm worried they are going to go bust

[Loueytb3]

They have finished building an extension on our house, all done on time (bar a bit of a delay with the doors) and to a very high finish. Have had no complaints about them at all. We need a new patio because ours was dug up to build the extension. We eventually agreed that they would do it. Paid them 10k for materials three weeks ago and they were supposed to start it this week. They didn't turn up today. I tried to phone the main man and his phone is just ringing, doesn't go to voicemail so I can't leave a message. DH did get a call from the project manager after I texted him to find out what was going on. It transpires that they have cash-flow problems (allegedly) due to a big tax bill.

Now I'm worried that they have our money and we have no way of getting it back and I don't know when (if ever) our patio will get built. We have a drop from the extension to the garden and DS3 (23 months) is going to kill himself if we don't get something sorted out.

Does anyone have any advice??

£10k for materials for a patio?

How did you pay? Is it part of the same job as the extension, i.e. was it included on the same quote? Does the extension come with an NHBC guarantee or similar?

I know it sounds like a lot, but its (expensive) decking and an even more expensive balustrade. All three quotes we got were similarly expensive.

We paid by bank transfer. Its not part of the same job as the extension, and although we had all sorts of deposit guarantees for that, this is a separate job with a separate quote. We have emails with detailed quotes/drawings and breakdown of payments.

Oh, I wasn't (that) shocked at the price if that's for the whole job, but it seemed a lot for materials.

I'm struggling to think of anything to say that will help TBH. If it was part of the whole job, you might have been able to claim under a guarantee and if you paid by credit card you would have some protection.

What did the project manager say about when he expects the work to be done? Is he employed by the builder? Do you know your money was used to buy materials? If so, and you can show that they were paid for by you and intended for your job, you might at least be able to claim the materials in the liquidation. Does the company belong to any trade association that might be able to help?

Do you have an address for the company/directors? I'd be going round there to at least get clarity, but if they have gone bust, you will be an unsecured creditor in the liquidation and TBH the prospect of getting you cash back is slim