The contract should include the following information:
- Name and contact details of you and the builder.
- Detailed schedule of works to be carried out.
- Start and completion dates. Agree what constitutes a finished job for instance a repaired and clean site. If timescale is important, you should agree a finish date with the builder with a penalty clause if they have not completed by this date.
- The price, including VAT.
- The payment terms. This should specify when/how the work is to be paid. Best practice is to pay your builder at specific stages of the work. You should include a ‘retention’. This is the part of the price that is to be paid one (or however many weeks or months you agree) after completion of work. This allows you enough time to discover any faults after the builder has left the site.
- Working hours.
- Insurance information and guarantees. For instance, the builder should have public liability insurance to protect you and the general public the in event of an accident. The contractor must submit evidence of insurances before starting work.
- How to resolve disputes.
- What will happen if extra work is required.
- What will happen if the project takes longer than expected.
- Arrangements for rubbish removal and welfare facilities for the builder’s contractors.
- Building control. The contractor should be responsible for gaining a completion certificate for Building Regulations stating that works carried out comply with current Building Regulations.
- Party wall agreements and planning permission. Your contractor should take responsibility for these.
- Variations. Any changes to the build project should be agreed before proceeding.
Source: Sarah Beeny’s ‘The Developer’s Bible’/Federation Master Builders
When the work is finished, refer back to the contract, make sure you are happy with the work, that the area has been cleared up and you have all the relevant paperwork and certificates.
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