Build Contract

[mandm]

Unsure if it’s the right place to post the question so moderator please move if deemed inappropriate.
I would like to have some sort of formal contract with my builder who would be doing my extension work which includes building a new toilet/bath and a boiler room as part of the extension.
I would like to avoid the periodic payments option, I rather link the payments to the completed key stages of the build. I am unsure what key stages I should link the payments to and would it be worth linking the payment to BR inspections? Also, can I make retention as part of the contract? If yes then what sort of percentage and for what period?

If i can find a sample template that would be a great help.

Thanks in advance.
Cheers

 

[noseall]

We usually link our payments to stages passed by B.C. or month end depending upon which is appropriate.

Withholding monies for a duration of time after completing all work, is usually reserved for contracts whereby this is relevant, i.e.large contracts etc. It may cause problems between you and your builder.

You are better off agreeing the final payment once you are happy with the work and all snagging is completed.

 

[mandm]

humm, thats an idea to link payment to both BC inspection as well as month end.
Right would it be possible to know what stages of the build the BC inspections expected?
I apprecaite we have to negotiate the T&C prior to starting the work so will ensure he is onboard with rentetion aka final payment.

Possible to locate a sample contract?

Cheers

 

[Blagard]

The JCT Home Owner form of contract and I think the only one free to download, or at least it used to be!

http://www.jctltd.co.uk/category/home-owner-contracts

I have an earlier .pdf version that was free to download but don't know if the forum would allow the document to be uploaded and accessible

Edit Ah found it!
http://www.jctltd.co.uk/docs/HORM 2009.pdf
Also Useful documents - a bit overkill for domestic work mostly but the Repair and Maintenance checklist at the bottom will at least give a heads up of what to think about.
http://www.jctltd.co.uk/useful-documents.aspx

 

[noseall]

Right would it be possible to know what stages of the build the BC inspections expected?

Foundations.
Drains.
Oversite.
Wall plate/roof.
Steels installation/knock through.
There may be preferred payment schedules that the builder prescribes i.e. lintel lift, joist lift etc.

I apprecaite we have to negotiate the T&C prior to starting the work so will ensure he is onboard with rentetion aka final payment.

Possible to locate a sample contract?

Cheers

Don't dictate to your builder, rather negotiate. Do not alienate yourself from him right from the outset. Making demands without incentives is lop sided and without parity and is a good way to ensure you have a frosty relationship.

Whilst I appreciate you need to be cautious, try and phrase your payment schedule so that you are only paying out once you have value. Agree to pay once you see machines, materials, productivity, passed stages on site and not fork out excessive amounts of money in advance.

Agree to pay the full amounts of relevant stages once you are BOTH happy with the work.

 

[mandm]

The JCT Home Owner form of contract and I think the only one free to download, or at least it used to be!

http://www.jctltd.co.uk/category/home-owner-contracts

I have an earlier .pdf version that was free to download but don't know if the forum would allow the document to be uploaded and accessible

Edit Ah found it!
http://www.jctltd.co.uk/docs/HORM 2009.pdf
Also Useful documents - a bit overkill for domestic work mostly but the Repair and Maintenance checklist at the bottom will at least give a heads up of what to think about.
http://www.jctltd.co.uk/useful-documents.aspx[/QUOTE]

Thanks for the pointers, much appreciated, will take a look, at least its a start.
cheers

 

[mandm]

Right would it be possible to know what stages of the build the BC inspections expected?

Foundations.
Drains.
Oversite.
Wall plate/roof.
Steels installation/knock through.
There may be preferred payment schedules that the builder prescribes i.e. lintel lift, joist lift etc.

I apprecaite we have to negotiate the T&C prior to starting the work so will ensure he is onboard with rentetion aka final payment.

Possible to locate a sample contract?

Cheers

Don't dictate to your builder, rather negotiate. Do not alienate yourself from him right from the outset. Making demands without incentives is lop sided and without parity and is a good way to ensure you have a frosty relationship.

Whilst I appreciate you need to be cautious, try and phrase your payment schedule so that you are only paying out once you have value. Agree to pay once you see machines, materials, productivity, passed stages on site and not fork out excessive amounts of money in advance.

Agree to pay the full amounts of relevant stages once you are BOTH happy with the work.

Thanks mate, totally agree I see the project as a partnership where both parties striving for mutually beneficial success.

 

[jeds]

What is the value of the work? And what experience do you have of managing building contracts?

 

[mandm]

What is the value of the work?

C55K+

And what experience do you have of managing building contracts?

Zilch, but i am not going to manage this project

 

[freddiemercurystwin]

That contract is not really appropriate. This is better: http://www.jctltd.co.uk/category/home-owner-contracts if you really want such a contract. Some may argue £20 is small potatoes with regards to £55K of work. That said it must be written correctly and adhered to or it won’t be worth doing. The point about using a proper contract like this is that should a dispute arise and both parties cannot agree an outcome then adjudication can be sought from JCT, albeit at a cost! And the adjudicator will examine all of the paperwork throughout the contract and if there are changes or extras or omissions then these must be all recorded and agreed during the contract period and the adjudicator’s word is final, failure to record this information adequately has scuppered many a claim! This is what jeds is getting at with regards to his comment about managing a contract. So tread carefully.

 

[jeds]

The vast majority of disputes likely to arise in small domestic works are easily covered by ordinary civil and common law. Standard form contracts can sometimes just complicate things - especially if they are poorly drafted. The main thing is you must know exactly what is going to be built, for what price and when payments will be made. As long as you know and agree these things and never pay for works before they are satisfactorily completed it can't really go wrong. My advice really is employ a good surveyor to prepare a specification, monitor the works and agree payments. Nine times out of ten you will save the cost of the fee.

 

[Blagard]

Written contract or not, I believe it is the interests of both parties to make a written record of decisions and agreements. Written or formal contracts can and often are modified as the work proceeds by mutual agreement between the parties.

Discussion by email are slower than the telephone but provide a record of what goes between the two.

The easiest contract I have ever had to administer involved a Site Agent who essentially would not do anything without a written instruction. A clients representative would ask for something to be done, the agent simply advised that he would deal with it as soon as he had it in writing which if necessary could be there and then on any piece of paper. End result, no arguments, job completed way ahead of schedule, every change recorded. Both parties happy. Even the client who occasionally got ruffled about this approach had to agree, it sorted the job out efficiently and in hindsight recognised it worked in everyone's interest.

The worst jobs are where people had discussions, did not record them and went away with a different understandings of what came about from the discussion. Neither party was being nasty, they simply came to different understandings of what they thought had been agreed. Of course this gets exaggerated later in dispute when things do get nasty and ego's or downright dishonesty come into play!

So IMO, the simplest way is agreed stage payments when work is genuinely completed properly. An agreed programme that should be achievable and not some "target" and finally a written record of anything that is either changed or detailed as work proceeds.

As a client be aware that making late changes or giving late information is one of the worst things you can do as it frequently costs more to deal with. So plan well ahead and know what you want well before it needs to get done and make sure the builder knows it to!

Make sure you know who is insuring what. Accidents do happen. If the builder does not have proper insurance imagine where that could lead to. Don't just accept the paperwork like a copy from the broker - check it out, call them. Don't assume your house insurance will cover anything, find out.

 

[mandm65]

thanks guys for your response/help.
Yep i was after a simple contract where i can put pen and paper together, for the benefit of the both parties, there no intent to go after a fully flagged contract. I believe your responses have given me enough food for thought.
Warning: As and when the contract moves forward i will keep you guys posted and off course occasionally will seek further help.
cheers