Stage Payment Thresholds for New Extension

[Doug99]

Hi Guys,

My son now has planning permission and plans for the demolition of an old single floor side extension, and build of a 2 storey extension in its place. This new build will require additional foundation/footings as it has a larger footprint to that of the original. Quote = £36k

He's considering a simple stage payment agreement/contract, so my queries are:
1. What are the recommended stages at which he should check work completed prior to payment?
2. What stages require formal inspection and sign off by building regs?
3. What % is acceptable as final payment?
4. Is a 12mth snagging/warranty period reasonable?
5. What insurances should the builder have and how are they checked?

He doesn't want a War & Piece detailed contract, so as not to frighten the builder off. But as long as he has a suitably detailed stage payment plan, I think he'll feel more confident to go forward.

Cheers

DM

 

[noseall]

You forgot item 6......
How can we convince the builder that we will actually honour things at our end given the one sided five previous bullet points

Only kidding.

BC will inspect foundation trenches, over-site (insulation hard core and DPM), drains, floor joists, roof carcass, steels and completion.
Completion visit will look at mechanical extraction, TRV's, lighting, certification (windows, gas, electric), stairs compliance and anything else on his checklist outlined in the reg's.

The builder will expect payments when items are inspected and passed or at the month end, or when large purchases need to be made in full.

If you are thinking of holding money back, then make this clear and for the right reasons. A small business will not stand several thousands of pounds out of pocket for sake of a missing screw or blob of silicone. Business is a two way street.

Snagging should be completed and final payment made. If things go south in the coming months then you would need to determine who is at fault then take appropriate action. Holding a ransom doesn't appeal to any builders.