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Contract with builder


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Hi all.

We are due to start work on our project  - around £150k - in a couple of weeks. (Strategy = Adding value to primary residence as a flip/refinance to raise cash for vanilla BTL. This is no.2.)

We know the builder who is a direct recommendation from someone we trust. We been in touch with him since pre lockdown 1, and he's been over 3 times so we are happy with him and his approach, and his quote (which was one of 4).

I'm not really sure what, if any, sort of contract I should have have with him. He has not asked for any payment upfront. I want us to be protected, and we've also informed our home insurers that we are having work done.

Is there a standard contract type I can use or I do need get more complex? 

I have a written quote from him, so I am thinking I can use this as the basis. Also, I wouldn't pay him the final 10% or so until any snagging is sorted.

Any advice appreciated.

Thanks.

Nick.

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Hi Nick

Given the amount involved, probably best to have one in place. They're commonly referred to as JCTs. As you're on terms with the builder, maybe ask if they have one that they use already and then check the T&Cs carefully.

If you're using an architect, then they probably have one available as well. 

Otherwise, you can opt to go alone and use this template - https://www.jctltd.co.uk/product/building-contract-for-a-home-owner-occupier which you will have to purchase for £29 +VAT, which seems reasonable for a contract (Note: I have no affiliation and have not used the services of JCT but have seen it recommended by others)

Personal Blog: https://abcdad.co.uk
Property Spreadsheet and Deal Analyser: https://abcdad.co.uk/property-spreadsheet
Looking to read some Property books? https://abcdad.co.uk/books/property-books
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Ah, thanks Nick, you didn't have to. That's very generous of you. 

Hope the all the refurb goes well, be sure to post progress updates and photos! Good luck.

Personal Blog: https://abcdad.co.uk
Property Spreadsheet and Deal Analyser: https://abcdad.co.uk/property-spreadsheet
Looking to read some Property books? https://abcdad.co.uk/books/property-books
Follow on Instagram: @abc.dad

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I’d certainly advise having Contract, even if just to set out payment terms, formalise the programme / completion, and procedure to introduce variation.  

However, the Contract is only as good as the documents forming the contract; without a design/specification of what you are getting there is a lot of wriggle room in interpretation.  Also, being introduced after tender/quotation, it may be resisted. 
hope all goes well. 

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  • 2 months later...

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