Building contracts: Why you should have one for your build project
A thorough legal contract drawn up between you and your builder before your build starts can protect you both, and help you work through any concerns during a build, fairly. Here’s what you need to know
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Taking on a build project of any size – whether it’s a self-build, renovation or extension – is no mean feat. You’ll be committing financially and emotionally so you’ll want to make sure that the project runs as smoothly as it can. That’s why a team of trusted tradespeople is worth its weight in gold.
But, did you know that there’s no licensing scheme for tradespeople? This means anyone can call themselves a builder without having to show qualifications or competency levels. And we all know someone who’s had a rough time with so-called tradespeople leaving the site part-way through a job or work just not being up to standard. So, what can you do to protect yourself and your project before work starts?
The importance of a building contract
Whether you’re about to have a new fence fitted or you’re looking to take on a loft conversion, it’s important to feel you can talk to your potential builder about setting up a building contract for the job. In the absence of licensing, measures like making sure you have a contract in place for building work can offer you some consumer protection from the likes of rogue traders.
A contract will set out exactly what work has been agreed to and offers both you and your builder protection in the event of a disagreement.
It needs to be a legally drawn up contract document, but that needn’t be expensive for your builder. The Federation of Master Builders (FMB) offers free contract templates to all its members. They’re jargon free and can be adapted to suit your project.
What to ask your builder to include in a contract
Then it’s a good idea to cover what happens if the project overruns, with an agreed rate of ‘liquidated damages’ which means a pre-agreed rate to cover any losses. For example, you might need to pay for additional rent if you’ve moved out of your property while the work is done.
All build projects are different so the level of detail will undoubtedly vary from project to project. However, there are a number of categories that are wise to include to give you overall peace of mind:
A summary of the work — a list of each element for you to check.
Start and completion dates — even hours of work, if this is important.
Any important documents — especially on larger projects that require detailed plans and drawings, and a schedule of works.
Details of who is responsible for what — any subcontractors and what you, as the client, are responsible for – such as the supply of electricity.
Any legal requirements — like party wall agreements, planning permission and building regulations, as well as any needs from other service providers.
Site restrictions and facilities — like site access and health and safety.
Pricing — the agreed price, deposit and an agreed payment schedule.
Changes — how change requests will be documented and dealt with.
Disputes resolution process — how will you mediate any disagreements? The FMB is certified by the Chartered Trading Standards Institute (CTSI) to provide Alternative Disputes Resolution (ADR) to our members and their clients.
How to cancel your contract — within a cooling off period.
Any extra concerns — For example, what happens in the event your builder declares insolvency, or what happens if work overruns.
Find a trusted builder
All FMB members are vetted and independently inspected before they can join, so choosing an FMB member to do the work can give you added peace of mind.
You can search for a Master Builder using the FMBs free Find a Builder tool. Simply enter your postcode and the type of building work you’d like done and the tool will bring up a shortlist of local FMB members for you to view and contact.
To find out more about building contracts and how the FMB can help, visit the website and check out the social media pages:
Facebook: @FederationofMasterBuilders
Instagram: @federationofmasterbuilders
Twitter: @fmbuilders
The FMB is campaigning to introduce a mandatory licensing scheme for the UK construction industry as part of its commitment to improve standards. This has the potential to professionalise the construction sector and offer a higher level of protection to consumers by removing rogue traders.
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