guarantees

[jbonding]

Been plastering 20 years and never really had to give a guarantee for my work because theres not much that can go wrong.
Starting to get into loft conversions with a friend, weve done two for a good friend and family so didnt really need to give a guarantee. Work is starting to pick up and currently just priced one from the drawings and another three sets of drawings have come through.
Just put a price in for one and the question of a guarantee has come up, ive heard of an insurance backed guarantee at 2 or 3% of the overall build cost, before i delve any deeper a bit of info would be great, cheers.

 

[holmslaw]

Is it a guarantee on your design and workmanship etc?
Is it guarantee that you will complete the work?
Is it a guarantee that you can finance the work ie No money up front but you would be paid in stages as the work progresses.

 

[jbonding]

cheers holms, its not a guarantee on the design or workmanship they have visited previous lofts and are happy with the standard, it will be stage payments so if they are on time and everyones happy this should be ok. I think they are interested in a guarantee once the work is complete but is there a guarantee i could offer for all the above? I know fmb offer a masterbond guarantee but i dont want to get involved with fmb at this stage. cheers.

 

[holmslaw]

It might be worth getting a solicitor to draw up something - as simple as possible. Proper commercial building guarantees are very complicated - don't go there.

I'm not sure about these insurance schemes and federation guarantees.

Personally, I would be happier with a simple written guarantee from a builder rather than one of these insurance schemes.

Why don't you try a post on a legal forum - sure there must be loads around.

 

[Shytalkz]

Make sure that you're limited if you're going to offer your own guarantee then...

 

[jbonding]

cheers for the replies, shy im not limited but im gonna talk to my accountant next week for his advise. maybe he will advise to become limited. Out of interest what kind of guarantee would you expect? im gonna post something similar on the discussions part for the good and bad news

 

[WoodYouLike]

When we install a wooden floor our client gets, besides the manufacturers guarantee on the materials, our company's "4-seasons" guarantee on labour: a wood floor has to settle and adjust during the 4 seasons of the year - if our client thinks there's something wrong he/she calls us, we come out (free) and solve the problem or explain the shrinkage etc is normal.

It gives our clients piece of mind, we hardly ever have to resolve a problem - craftsmanship - our term: "4-season" guarantee explains/educates what it's really about.

Perhaps an idea?

 

[fidom]

I would have thought you normally just guarantee to put right any problems within reason at your own expense and have public liability insurance for anything serious.

 

[WoodYouLike]

That's right fidom, but it doesn't hurt to explicitly mention it to your clients.

 

[gangman]

Use a JCT Minor Works Contract. Very simple to use. At the end of the job an agreed amount ( usually 2.5%) is held by the client for an agreed time ( usually 6 months ). Any defects occuring during the agreed period are put right by the builder and at the end of the period the builder gets the money held.

 

[jbonding]

cheers gangaman, sounds good now i need to see where i can add an extra 3%

 

[holmslaw]

Use a JCT Minor Works Contract. Very simple to use. At the end of the job an agreed amount ( usually 2.5%) is held by the client for an agreed time ( usually 6 months ). Any defects occuring during the agreed period are put right by the builder and at the end of the period the builder gets the money held.

Be afraid, be very afraid, do not go there!

 

[holmslaw]

cheers gangaman, sounds good now i need to see where i can add an extra 3%

But that is the right attitude because you will never see the retention money.

 

[gangman]

All I can say about using a JCT is that I've never had a single problem with any payments. If you think money will be held back because of problems with your work, then don't give a guarantee.