Any advice on contract/payments for building works?

[PoshWatchShitShoes]

We've just finalised the spec of works and costs with our builder. This is very detailed and all in excel at the moment.

We've had a provisional start date in the diary for 31st August, which is exciting.

I suppose he now sends me a draft contract? I've never had building work done before, so I'm totally clueless.

It's a 12-week job and costing around £215k to the builder and then I'm ordering the kitchen, bathrooms, tiles, radiators, switches, sockets myself and his guys will fit them.

He's project managing the work.

How would you expect the payment schedule to work? We're moving out whilst the work is underway, so I'm planning to pop into site every couple of days. Or is this too often?

Excited, but nervous!!

With that budget you need a proper contract. Payment should be monthly, for works undertaken, not in advance. And you should be keeping a retention of 5%, of which 2.5% is paid at completion and 2.5% is paid 6-12 months post completion when any defects have been made good.
Check out the JCT Home Owner contract or the RIBA Domestic building contracts.

You can’t be there often enough….. there will be plenty of small decisions to be made as the work goes along. Try and be there as much as you can and tell your builder to contact/ speak to you if things need to be clarified or changed. Good luck.

May I ask what work you are having done? I’m just getting quotes for a building project and I’m also wondering about the payment schedule

100% insist on a JCT contract. You can purchase and download this yourself.

Ask yourself, who is the builder and how reputable are they? Are they a big National company or a small team? If the later, would you consider stretching to get your own independent project manager who will act in your interest, instead of themselves (the builder)?

We had a similar job. The builder didn't draw up the contract, my DH did!

We had the plans which were to building control standards, then a whole schedule of work that had detail in addition to the plans. For example it included the spec and model number of the Velux windows, the type and model of ceiling lights...you get the message

The contract specifically listed these documents as the spec.

The payment schedule was no upfront payment. The first payment was 2 weeks after commencement based on progress being over the agreed schedule. There was an anticipated timeline and the payments were 80% of the contract price divided up over the length of the job payable every 2 weeks. So ours was 20 weeks so 80% over 10 payments. 20% was held back to be paid in the following circumstances

The build and finish completed to our satisfaction and to the contract spec
Building control certificate issued along with all associated gas and electric ones (which you need for the building control one)
An additional 14 days allowed after receipt of the BC certificate to allow for snagging

Builder swallowed at some provisions but went with it. Brilliant building experience if there is such a thing. Works finished to a top standard and we paid 14 days after BCC issued.

He has returned up to 4 years later to sort the odd problem.

You are right to get the contract right ...ours was 8 pages

Thanks all.

@MarieG10 thanks for sharing so much detail. That's super helpful. Please could I ask where your DH found the template contract?

The JCT website has so many options for contract download. I want to make sure I download the correct one.

Or if there's another template contract that provides suitable protection? Many thanks 😊

He didn't really use one. He looked at the standard Federation of Master Builders one...but unsurprisingly it was skewed more towards the builder. He literally drafted his own...he isn't a lawyer but is pretty articulate with stuff like that. A friend who is a lawyer looked at it and said it was pretty good....so signed and witnessed and then we were off.

It was useful...we got it out several times to check spec and provisions. Builder said he was going to use it himself in future (with a few changes he said😆😆)

Hi @MarieG10 - thank you much for this post - are just about to sign IBC contract and realised we do not have the level of detail you mentioned with regards to our project which is similar to the one you had.

Any chance you can share the spec/provisions document you done with the builders? I would really appreciate it just to get a sense of things I need to include.

Also was it signed with the contract or sent separately as an email?