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Concern with builder's contract

3 replies

AndHer3WeGoAgain · 16/08/2026 20:36

Hello and help please.

So i have thought i had decided on a builder for my renovation and extension project however having reviewed the contract now I am concerned about a few things a few things:

  1. Approximate quotation for the project is £230K they want 30% deposit to secure materials etc.. is this not unusually high? From i have gathered, 10-15% should be sufficient deposit.
  2. After deposit, builder wants weekly payments for the rest till project completes. Again, this worries me as I would expect payment to be linked to completed milestones. If there is no progress for a particular week for whatever reason I would still have to make payment which doesn't seem right.
  3. Teh rectification period is only 3months. I would have expected this to be about 12months. It is a big project adding a first floor extension, ground floor rear + side extension and a full house renovation.
  4. Rerension is 2.5% payable after 3months; i would have expected something more like 5% payable after 12months.
  5. His public liability insurance is £2M however, contract work is only insured up to £100K. This i really do not understand, shouldn't the contract work be insured at least the total contract value of £230K although my personal preference would have been the full reinstatement value of my house.
  6. Hired plant is also not covered so if any equipment hired for the project is damaged who covers this?

Are these valid concerns or am I over thinking this and ths is all normal /standard practice?

Should I discuss these with my builder or just disn another one ?

Thank you for taking the time to read.

OP posts:
Crumpetring · 16/08/2026 20:53

OP use a standard form of contract.

https://www.jctltd.co.uk/product/building-contract-for-a-home-owner-occupier

Is the best place to start.

Rectification should be 12 months so that the build gets all the seasons, deposit does seem very high, suggests bad cash flow, payments are usually linked to build progress, insurance is far too low and not appropriate.

Building Contract for a Home Owner

This contract is for a home owner/occupier who has not appointed a consultant to administer the contract. The customer deals directly with the contractor.

https://www.jctltd.co.uk/product/building-contract-for-a-home-owner-occupier

nomorekitchenislandsplease · 16/08/2026 20:57

Valid concerns. Proper builders have credit with suppliers and don't need materials paid for up front except bespoke items like made to measure doors. A deposit is ok then payment at milestones.

Tortephant · 17/08/2026 08:15

There is too much going on here OP. I would be concerned too.

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