Builders Contracts

If you are employing a builder to carry out work for you, or if you are a builder who regularly works on residential or commercial property for clients, it is advisable to enter into a contract in writing in case anything goes wrong. 

A study carried out by the Federation of Master Builders reported that 90% of homeowners don’t ask builders for written contracts when taking them on, 80% don’t ask for an agreed payment schedule, and 76% of tradesmen don’t have building contract templates in place. This means that home owners and builders instructing lawyers to resolve disputes is very common. In many cases, it could be avoided by having robust and legally binding contracts in place, before the work starts.

 

Building Contracts Protecting Home Owners

Whilst contracts with builders can be verbal rather than written, if a dispute arises you can be left in a vulnerable position if you have to try and prove what was agreed with your builder, rather than being able to rely on the terms of a written contract. You should make sure that the contract sets out exactly the work that you have asked the builder to do, and how much the builder has asked you to pay for that work.

Resolving disputes and litigation can be costly, but with a builder it can be particularly stressful, if you are a homeowner who is left with a half-finished or damaged property, or if you have to get another set of builders in to finish the work off.

 

Contracts Protecting Builders

Whether you’re self-employed or a sole trader, having the correct contract in place can give you peace of mind and legal certainty if things go wrong. It may be that a client does not pay for the work you have already completed, or there is a dispute as to the actual terms agreed. 

A contract can protect you as a builder, if a client asks you to carry out extra work which was not within the scope of your original agreement with the property owner.

 

Building work contract template

If you are searching online for a construction work contract template, you may be able to find a basic generic set of terms, which look like they could be helpful. However, online building contract templates often omit crucial details that could lead to further disputes. 

All written contracts between builders and their customers should meet certain criteria to ensure they are legal binding. The terms which should be included in a contract between a builder and a customer are: 

  • The full legal names and addresses of the parties involved;
  • The address of the property where the building work is to be carried out;
  • Full details of the work which the builder should carry out at the property;
  • Details of any hourly or daily rates which are agreed;
  • Confirmation of who is responsible for paying for materials;
  • How and when the builder will be paid;
  • Details of any deadlines for completion of the project, or stages in the project;
  • What happens if a client changes their mind to expand or reduce the scope of the work to be carried out by the builder;
  • What happens if a client fails to pay in full or on time; and
  • What happens in the you are unable to complete the work because of circumstances out of your control. 

As Samuels’, a specialist property lawyer can assist you in drafting contracts tailored to your specific requirements.

We appreciate that your home or commercial property is your key asset, and we understand from a builder's perspective that your business is your livelihood. We can work alongside both property owners and builders you to safeguard your interests, support efficient operations and promote long-term success, by ensuring that legally enforceable, cost effective contracts are entered into from the outset. 

 

Contract After Building Work Started

If the building project has already started, and you want to enter into a contract in writing, this is still possible. It will be important to record any agreement that was made at the outset of the project about the work to be done, and to record any payments which have already been made. 

 

Get Legal Help With Building Contract

If you would like to instruct us to help you put together a contract with your builder, we will be able to help. We charge a low fixed fee for this work, which we will agree with you at the outset. There are no hidden extra fees, and we will discuss with you at an early stage as to the costs and funding options available to you. 

Contact us today for a free initial discussion about how we can help.