DESIRED OUTCOME OF DOMESTIC BUILDING WORKS CONTRACT · The object of this form of contract is to...

Copyright DIY Doctor Ltd June 2010 This Desired Outcome Contract is a standard form contract which is provided as guidance. It does not

constitute legal advice in any way.

DESIRED OUTCOME OF DOMESTIC BUILDING WORKS CONTRACT

This contract is for use on domestic projects not exceeding £75,000 (ex VAT) where no architect, building surveyor or

consultant is employed to oversee and/or advise.



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Aims and objectives

The object of this form of contract is to provide fair conditions for both the householder (Client) and the workforce (Contractor), and to minimise any additional costs due to work being required which is not implicitly detailed in the contract or drawing(s). This contract, together with all further items referred to in this contract form a legally binding document which the signatories agree to accept as a legally binding contract.

The Contract is intended to outline fair and reasonable terms for both parties. The Client can expect works which comply with appropriate drawings and specifications and which function entirely to their intended purpose. The Contractor can expect the agreed fees to be paid at the agreed times subject to the Contractor’s obligations having been met.

Items which are omitted from the drawing(s) but should reasonably be expected to form part of the completed works will be deemed to be included in the Contractor’s quote. The Contractor should draw on previous contract experience to look at the likelihood of possible “unforeseen” works and inform the Client of any such possibility. The submitted price includes for Contractor’s costs made necessary by the Contractor failing to undertake careful inspection of the works before submitting a quotation. It is assumed, for the purposes of this contract that the necessary permissions (Planning Permission and Building Regulation Approval) for the intended work have been granted by the authorities. If this is not the case full details of who is responsible for obtaining these permissions must be outlined in Clause 4, Description of Works. It is also understood that the Contractor who signs this document understands and accepts they are fully responsible for the health, safety and welfare of employees and any others who may be affected by what they do. This includes sub-contractors, casual or part-time workers, trainees, customers, neighbours, sales people and members of the public. Full details of Health and Safety implications can be seen at www.hse.gov.uk.

http://www.hse.gov.uk/



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This agreement is dated _____________________________________________________________________and

is between the Client and the Contractor who together are called the “Parties” in this

agreement. NOW it is agreed between the Parties:

1. INTRODUCTION

1.1 In order to simplify this agreement, we have given a specific meaning to some

words, expressions and concepts. Capitalised terms used in this agreement have

the meanings given in Schedule 1 (Definitions).

1.2 Italicised words appearing between square brackets in this agreement are

instructions and directions for completing this agreement. These words are

inserted for convenience and shall not form part of this agreement.

1.3 Please complete this agreement in conjunction with the attached notes. The notes

shall not form part of this agreement.

2. CLIENT DETAILS

Name(s) ___________________________________________________________________________________ Address____________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ Telephone number(s) ____________________________________________________________________ Mobile number(s)___________________________________________________________ _____________

Email address(es)_________________________________________________________________________ Address at which Works are to be carried out (if different from the address above) ______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________



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______________________________________________________________________________________________

______________________________________________________________________________________________

[Use further pages if necessary]

[Please delete as appropriate:]

3. CONTRACTOR DETAILS

Name____________________________________________________ Address___________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________ Telephone number _________________________________________ Contact name(s) and mobile number(s) Name __________________________ Number ________________ Name __________________________ Number ________________ Name __________________________ Number ________________ Email address(s) ___________________________________________ Email address(s) ___________________________________________ Email address(s) ___________________________________________

Public Liability Insurance Number and Issuer: ______________________________________________________________________________________________ [Please see separate note regarding Insurance in the attached notes]

The Client will be living in the property during the Works

The Client will not be living in the property at any time during the Works



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VAT Registration no:

As a member of the Trade Association known as:

______________________________________________________________________________________________ And/or details of insurance backed guarantee and issuer: ______________________________________________________________________________________________ ______________________________________________________________________________________________ ______________________________________________________________________________________________

4. DESCRIPTION OF THE WORKS: ______________________________________________________________________________________________

______________________________________________________________________________________________

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[Please use separate sheet if required] List of drawings and documents used to provide details and prices of the Works. Copies of all of these documents must be kept with this agreement and form part of this agreement.

[For example, the Contractor’s quotation, drawings, specification and any other documents, including photographs, used by either party.) Copies of any accompanying paperwork should be initialled by the Client and Contractor, dated, and kept by the Client with this contract. Verbal agreements should be put in writing, signed and added to the contract documents.]



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5. TIMESCALE OF WORKS

5.1 The Works shall not commence until any planning permission and party wall

consents have been granted.

5.2 Start Date, Completion Date

[Delete either Option 1 or option 2 as appropriate] [Option 1] The agreed Start Date is: And It is expected that the works will be completed by:

(Date)

[Option 2] The Works will take: [state the number of days/weeks the Works will take to be completed] from the Start Date. The parties agree that the calendar day for the Start Date will be agreed between them at a later date, but shall in any event be no later than: [state the last date by which the Works must have commenced]

5.3 The Contractor shall not be liable:

(a) to pay any penalty to the Client; or

(b) for any losses, costs or damages suffered by the Client,

as a result of the Works not being completed prior to the Completion Date.

6. COST OF THE WORKS

Value of Works excluding VAT Value of Works including VAT Amount of VAT and VAT rate

Total Price

%



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[Please tick if this value is a:]

ESTIMATE [Please give details of any Estimate]

[Please use additional sheets as required]

6.1 Where a Quotation has been agreed it can only be varied to take account of

Additional Works or where a portion of the Works detailed in the Quotation is not

required.

6.2 Where an Estimate has been given, the Client must consent in writing in advance

to any increase in the Estimate of more than 5% before incurring any liability

with respect to the Estimate to the Contractor.

7. VARIATION TO WORKS

7.1 In the event of any variation to the Works, the Contractor shall charge the Client

the following hourly rates for tradesmen and labourers and the following

percentage mark-up on the provision of materials, overheads and profit:

7.2 The Contractor shall not be permitted to vary the cost of performance of the

Works where a Fixed Price has been agreed.

7.3 The Client is permitted to vary the Works by agreeing the nature and cost of the

variation with the Contractor and completing and signing an Agreed Variation

Schedule with the Contractor. Such a schedule can be found at the end of this

contract.

7.4 The Client reserves the right to obtain quotes from alternative contractors for any

variation providing that this does not delay the Contractor in any material way. If

the Contractor is delayed it may recover the reasonable costs it incurs as a result

of such delay in accordance with the rates set out in Clause 7.1. In addition, the

Completion Date shall be extended by the number of days of the delay.

Quotation Fixed price

Tradesman per hour: £ Labourer per hour: £

Material mark-up as % = Overheads/profit as % =



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7.5 Before any Additional Work is started, the Parties shall complete an Agreed

Variation Schedule for the Additional Work which shall detail the cost of the

Additional Work in accordance with the rates set out in Clause 7.1.

8. TERMS OF PAYMENT

[Delete either Option 1 or option 2 as appropriate] [Option 1]

[Option 2]

8.1 Regardless of whether Option 1 or Option 2 is chosen above, payment from the

Client shall only be due to the Contractor 7 days from the date on which the

Contractor supplies the Client, or the Client’s third party payment agent (as

applicable), with a properly issued VAT (if applicable) invoice, detailing the part

(or whole) of the Works to which such invoice relates (including any Permitted

Variations) including an itemisation of items that attract VAT and the rate at

which VAT is charged (if applicable).

8.2 If an invoice cannot be produced by the Contractor within a reasonable time for

any Permitted Expenditure, payment by the Client for such Permitted

Expenditure shall be conditional on the Client being provided with an original

receipt from the supplier.

8.3 If a third party payment plan has been implemented, the terms and conditions of

such plan shall override any contrary provisions of this contract.

8.4 In any event, no request for payment of any kind which is not expressly stipulated

in this contract shall be made by the contractor.

The Client shall pay the Contractor 95% of the Total Price on completion of the Works as set out below (if requested by the Contractor).

The Client shall pay the Contractor in the instalments set out in the “Agreed Instalment Payment Schedule” which can be found at the end of this agreement at the times set out in the Schedule (including for any Permitted Variations which have been completed by that time). [The Agreed Instalment Payment Schedule is available at the end of this contract and should be completed and signed by the Client and Contractor and copies held by both Parties.



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9. RETAINER

9.1 The Contractor agrees that (unless otherwise agreed between the Client and the

Contractor in the Agreed Instalment Payment Plan Schedule) the Client shall

withhold an amount equal to 5% of the Total Price, including any Permitted

Variations, as security against the performance by the Contractor of any remedial

work to remedy any defects in the Works. This is called the “Retainer” in this

agreement.

9.2 After Completion, the Client shall test the Result to ensure that the Works have

been performed to the required standard and that there are no defects in the

Result.

9.3 Prior to the expiry of 14 days from the Completion Date, the Client shall either

provide the Contractor with a detailed list of any defects or confirm in writing to

the Contractor that there are no defects.

9.4 The Contractor promises and agrees to remedy any defects identified in the

Defects List within the period of 14 days of the date of receipt of the Defect List.

On completion of the further works to remedy the defects detailed in the Defects

List, the Client and Contractor shall inspect the Result together. If the Client and

Contractor agree that the defects identified in the Defects List have been

remedied, the Client shall confirm in writing to the Contractor that there are no

defects remaining.

9.5 Within 3 days of the Client giving a confirmation to the Contractor detailed in

Clause 9.3 or 9.4, the Client shall pay an amount in respect of the Retainer to the

Contractor.

10. THE CONTRACTOR’S RESPONSIBILITIES

10.1 The Contractor promises and agrees that:

(a) all materials used to perform the Works will comply with the relevant

British Standards and be covered by their manufacturer’s guarantee.

Should any material fail as a result of a manufacturing fault, the

guarantee will be pursued by the Contractor on the Client’s behalf at the

Contractor’s own cost until a suitable outcome is achieved which

restores the Result to the condition set out in this agreement;

(b) it shall not make (or permit any third party to make) any financial claim

against the Client in respect of any failure of any material, product,

design or construction used during the Works and/or in the Result. The

Contractor takes full responsibility for the quality of all materials,



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products, design and construction used during the Works and/or in the

Result except for the matters set out in Clause 11.2;

(c) manufacturer’s recommendations for use will be followed at all times.

Where a particular product or material is recommended to work

alongside any other product or material, a similar product or material

may be used (with the consent of the Client) providing that it is of the

same quality and its manufacture is intended to fulfil the use to which it

is put by the Contractor;

(d) over and above any manufacturer’s guarantee, it will guarantee its

workmanship for 12 months from the Completion Date and will provide

full details of its own insurance-backed guarantee for the workmanship

by any contractor or individual under its control for any part of this

contract. Should workmanship be called into question and shown to be

at fault, the full cost of rectifying the defects in the Works shall be met by

the Contractor;

(e) it shall have in force valid public liability insurance with a coverage of no

less than [£2 million] throughout the term of this agreement;

(f) it will advise the relevant local authority (if required) no less than 48

hours before the Works commence in order to comply with building

regulations;

(g) it will take all reasonable care to protect areas, objects and items not

directly associated with the Works but in relation to which a possibility

exists that they could be damaged by the Works, including without

limitation any neighbouring properties;

(h) it will use all reasonable endeavours to minimise the risk of any

pollution, disturbance or environmental impact created as a result of the

Works and will immediately inform the Client and the local authority (if

required) of the occurrence of any pollution or environmental impact;

(i) use all reasonable endeavours to protect the health and safety of all

those entering the Site, dwelling, gardens or outhouses;

(j) keep rest and break areas clean at all times with all rubbish to be

disposed of in the appropriate place;

(k) if waste skips are to be used it shall ensure that:

(i) they are placed only in areas agreed with the Client; and

(ii) a license permitting containers to be placed on a public highway

is supplied (if required) and that the terms of any such license

are complied with.



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(l) when the Works are not in progress on the Site, or any part of the Site, it

shall keep areas not being used for work or storage in a clean and tidy

condition;

(m) it shall ensure that any temporary protection provided by the Contractor

is safe, weatherproof and does not create noise pollution which may

cause discomfort to the Client or any of its neighbours;

(n) if the property is not occupied by the Client during the Works it will take

all reasonable precautions to prevent intruders entering the Site at any

time;

(o) it shall not sub-contract any part of the Works to any person unknown to

the Contractor without the prior written permission of the Client;

(p) it shall ensure that it performs all its legal duties including with regard to

the charging of VAT, payment of employer PAYE of employees and its

Corporation Tax;

(q) it will keep any toilet facilities (whether provided by the Client or the

Contractor) hygienically clean at all times; and

(r) it will not dispose of (or permit the disposal of) waste on Site except in

the appropriate, external, main drainage.

10.2 The Contractor makes a statement and a binding promise (called a warranty) to

the Client at the Completion Date and on each day thereafter until the expiry of

the period of 12 months from the Completion Date that the following statements

are true:

(a) any material and/or product used during the Works and/or in the Result

will operate in the way intended by the manufacturer;

(b) any material and/or product used in the performance of the Works

and/or in the Result will comply with the relevant British Standards and

be covered by their manufacturer’s guarantee;

(c) it has in force valid public liability insurance with a coverage of no less

than [£1 million]; and

(d) in relation to each operation undertaken in any room or area, and every

appliance or fitting used, the functions of that room, rooms, area or

appliance operate in a manner appropriate to the use of that room;

(e) every part of the Works complies with all planning and building

regulations including water, plumbing, electrical, and gas safety

legislation in all forms which relate to work on domestic installation.

10.3 The Contractor will not be liable for the following materials and/or products

which were provided by the Client:



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______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

[Continue on a separate sheet if necessary, such a sheet to be initialled by the Client and Contractor and each to hold a copy, the Client to keep his copy with this contract.]

10.4 The Contractor promises and agrees to keep an appropriate number of tradesmen

on Site for the duration of the contract and will stay in good communication with

the Client in the agreed manner should anything prevent the Contractor and their

representatives attending the Site: The Agreed form of communication will be:

[Please include details of the agreed communication methods and save all

messages]

Telephone landline: _______________________

Telephone Mobile: ________________________

(A log must be kept of all telephone calls)

SMS Text messaging: ______________________

Email :__________________________________

11. THE CLIENT’S RESPONSIBILITIES

11.1 The Client promises and agrees to:

(a) unless agreed in writing by the Parties, make available to the Contractor

water and electricity at no charge to the Contractor on condition that

such services be used by the Contractor solely for the provision of the

Works;

(b) give the Contractor no less than 3 days written notice of any dates on

which the Contractor is not to be admitted onto the Site for any reason.

The Completion Date shall be extended by the duration of any such

exclusion. The Contractor shall be permitted to pass onto the Client for

any costs reasonably incurred by the Contractor as a direct result of the

exclusion at the rates detailed in Clause 7.1;

(c) take all reasonable precautions to protect its own health and safety and

those of any members of its household or anyone visiting its household;



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(d) advise its household insurer that it is having building work done at the

Site;

(e) permit the Contractor to carry out the Works in any order that the

Contractor reasonably deems most suitable in order to ensure

compliance with the timetable detailed at Clause 6. The Contractor shall

bear all responsibility for maintaining the integrity of the Works and

meeting the timetable detailed at Clause 6 should the normal sequence

of the Works be varied as a decision of the Contractor;

(f) ensure that the Contractor is aware of each area, object and item which

the Client wishes to keep free from damage within the working area.

Wherever possible, vulnerable items shall be removed by the Client from

the working area and placed in a safe place under the control of the

Client.

12. HOURS OF WORK

12.1 Hours of work are to be agreed between the Client and the Contractor and are as

follows:

Mon-Fri _______ am to _______ pm Sat ___________ am to _______ pm Sun___________ am to _______ pm

Any other arrangements _______________________________________________

13. RESOLVING DISPUTES

[It is recommended that the Client and Contractor shall agree between them,

at the outset of the contract, an arbitration service which could be used in the

event of any later dispute between them.]

13.1 If the Client does not pay the Contractor when agreed, or prevents the Contractor

from gaining access to the premises to carry out the Works then the Contractor

must give the Client 7 days’ notice of his grievance. If the matter is not resolved

the Contractor may then issue a dispute notice thereby commencing an

arbitration.

13.2 If the Client believes that it has good reason to withhold money from the

Contractor it must issue the Contractor with a dispute notice (commencing an



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arbitration) that it intends to withhold money and how the amounts of any such

monies have been calculated.

13.3 The agreed arbitration and dispute resolution service is

Name___________________________________

Address _________________________________

________________________________________

Telephone________________________________

Email____________________________________

13.4 Each of the Parties promises and agrees to comply with the rules of the

arbitration provider detailed above.

14. TERMINATION

14.1 The Client may terminate this agreement for any reason by giving the Contractor

written notice prior to the expiry of the period beginning on the date of this

agreement and terminating 14 clear days after the date of this agreement. If the

Client chooses to terminate this agreement under Clause 14.1, the Client shall not

be liable to make any payment for any losses or expenses suffered or incurred by

the Contractor as a result of the Client terminating this agreement except if Clause

14.3.

14.2 Unless otherwise provided in Clause 5, the Contractor shall not be obliged to

commence the Works or provide any services or materials until 14 days have

expired from the date of this agreement.

14.3 Where Clause 5 requires the Contractor to commence the Works or provide any

services or materials prior to the expiry of the Permitted Termination Period, the

Contractor may charge the Client for the cost to the Contractor of the following

items where this agreement is terminated under Clause 14.1 so long as any items

are detailed in Clause 5:

(a) any services provided by the Contractor between the date of this

agreement and the date of termination including without limitation the

provision of licenses required for the performance of the Works;



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(b) materials or products needed in an emergency in order to permit

performance of the Works in accordance with Clause 5;

(c) materials, products and/or services that are personalised and/or

particular to the Works;

(d) perishable materials and/or products required for the Works; and

(e) any materials and/or products already incorporated into the land.

14.4 The Client may (but shall not be obliged to) terminate this agreement

immediately if any of the following events happen:

(a) the Contractor being in breach of health and safety regulations; or

(b) the Contractor failing to attend the Site regularly;

in each case where the Client has notified the Contractor of the above

matter in writing, but the matter has not been resolved within 7 days of

the date of such notice; or

(c) where it is found that that additional works are required beyond the

scope of the Works agreed in Clause 4 so long as such works are not

Additional Works; or

(d) the Contractor and the Client being unable to agree the scope or cost of

any Additional Works or any variation.

14.5 The Contractor may (but shall not be obliged to) terminate this agreement

immediately upon the Contractor being unable to safely access the Site for a

period of two Business Days through no fault of the Contractor;

14.6 Either Party may terminate this agreement immediately if (if an individual) the

other party is declared bankrupt or steps are taken to declare him bankrupt or (if

a company) any of the steps in the Insolvency Act 1986 are taken with respect to

it.

14.7 If there is a related credit agreement, cancellation of this agreement shall

automatically terminate the credit agreement.

14.8 If either Party terminates this agreement, any rights and obligations of any Party

that have accrued prior to the termination, or under any provision of this

agreement which is expressly stated not to be affected by termination will remain

in force.

14.9

14.10 Clauses 1, 13, 15 and 16 shall remain in full force after termination.



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15. NOTICES

15.1 Any notice given under this agreement shall be in writing and shall be delivered

by hand, sent by pre-paid first class post or recorded delivery post to the address

of the Party as set out in Clauses 2 or 3 (as applicable), or to such other address

notified to the other Party, or sent by email to the email address of the Party set

out in Clauses 2 or 3 (as applicable), or to such other email address notified to the

other Party.

15.2 A notice shall be deemed to have been received:

(a) if delivered by hand, when delivered (or if delivery is not in business

hours, 9.00 am on the first Business Day following delivery);

(b) if correctly addressed and sent by pre-paid first class post or recorded

delivery post, on the second Business Day after posting; and

(c) if sent by email to the email address of the relevant Party, at the time of

transmission.

16. GENERAL

16.1 If any provision of this agreement (or part of any provision) is found by any court

or other body of competent jurisdiction to be invalid, unenforceable or illegal, the

other provisions shall remain in force.

16.2 If any invalid, unenforceable or illegal provision would be valid, enforceable and

legal if some part of it were deleted, the provision shall apply with whatever

modification is necessary to give effect to the commercial intention of the Parties.

16.3 If the Parties want to amend this agreement, they can only do so in writing signed

by or on behalf of all the Parties to this agreement.

16.4 Any failure or delay by a Party to enforce its rights or any remedy under this

agreement shall not constitute a waiver of such right or remedy.

16.5 This agreement contains the whole agreement between the Parties and any other

agreements, understanding or arrangements between the Parties relating to the

subject matter of this agreement are cancelled and of no effect.

16.6 Each Party confirms that it has not entered into this agreement as a result of

relying on some statement or promise of the other Party that is not contained in

this agreement. This doesn’t limit or exclude the liability of either party if it has

acted fraudulently.



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16.7 A person who is not a party to this agreement shall not have any rights under the

Contracts (Rights of Third Parties) Act 1999 to enforce any term of this

agreement.

16.8 This agreement may be signed by the Parties on separate pieces of paper. The

signature of one Party shall not bind the other Party until both Parties have each

signed and dated at least one copy of this agreement.

16.9 This agreement and any dispute or claim arising out of or in connection with it or

its subject matter or formation (including non-contractual disputes or claims)

shall be governed by and construed in accordance with the law of England.

16.10 Other than where an the Parties use an arbitration to resolve disputes, the Parties

irrevocably agree that the courts of England shall be the only place where any

dispute or claim that arises out of or in connection with this agreement or its

subject matter or formation (including non-contractual disputes or claims) can be

judged.



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SCHEDULE

DEFINITIONS

Additional Works: additional works have arisen which could not have been

reasonably foreseen by the Contractor at the time of the Quotation;

Agreed Variation Schedule: the schedule to this agreement labelled “Agreed

Variation Schedule”;

Completion: occurs when each of the Client and Contractor agrees in writing that the Works, any Permitted Variations and any Additional Works have been completed;

Completion Date: the date of Completion;

Confirmed Cost: the final Fixed Price of any Estimate;

Result: the finished building work resulting from performance of the Works;

Estimate: a ball-park figure for the cost of an item which cannot be legally

binding as it is assumed to be correct based on the facts which available at the

time.

Total Price:

The Total Price;

plus (only if the Total Price given in Clause 6 is a Quotation) the agreed

cost of any Additional Works);

plus the cost of any Permitted Variation;

plus the Confirmed Cost of any Estimate;

Fixed Price: a price quoted by the Contractor which will not changed once the

Works have commenced;

Permitted Variation: a variation to the Works requested by the Client and

agreed between the Client and Contractor and set out in an Agreed Variation

Schedule;

Quotation: a sum representing the final value of the Works (based on a detailed

inspection by the Contractor which takes into account all foreseeable problems

and works not necessarily stated, but implied by investigation of Site and the

documents and drawings provided to the Contractor) which is only variable if

Additional Works are encountered which can be shown to be totally



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unforeseeable.

Site: the land on which the Works are to be performed, the extent of which is to

be agreed between the Parties and (if necessary) marked out accordingly;

Start Date: the date set out in Clause 5; and

Works: all the work to be carried out by the Contractor at the Site as set out in

Clause 4 and any Agreed Variation Schedule.

Copyright DIY Doctor Ltd June 2010 This Desired Outcome Contract is a standard form contract which is provided as guidance. It does not constitute

legal advice in any way.

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Agreed Instalment Payment Schedule

Payment of £ £ £ £ £ £

Date ----------

Or stage of

Construction detailed

Method of Payment

Received by Contractor (Signature)

Additions to the £ £ £ £ £ £

Works as shown

Notes on payments

Retainer withheld

Retainer Paid

Copyright DIY Doctor Ltd June 2010

This Desired Outcome Contract is a standard form contract which is provided as guidance. It does not constitute legal advice

in any way.

Agreed Variation Schedule

Description of Variation: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Effect on Cost and Project End Date(Ex VAT)

A B C D E F G

Labour (e.g.

Electrician, Labourer)

Cost of Labour

(per hour)

Number of

Hours

Total Labour

Cost (B x C)

Cost of

Plant

Cost of Materials

Sub-totals of

(D+E+F)

Signatures

Contractor Sub-total G

Overhead/ Profit 30%

Total net

price

Client

Date



in any way.

Notes to accompany the

Desired Outcome Building Contract

Please read this contract and notes before you start work of any kind. Go through every page carefully with the Contractor to get a full understanding, together, of the boundaries

you will both be expected to recognise and respect.



in any way.

Notes to the Desired Outcome Building Contract Before reading further, it is important to note that it is your home and therefore, your responsibility. If you are not prepared to take full responsibility for the people you employ, put a fair bit of effort into checking out the people on your short-list and be ready to pay a little more than average (insurance) to absolutely ensure a good job, then these notes are not for you. Most businesses in the UK are not worth as much as your house but the owners of the businesses still ensure that they interview every candidate for a job as well as checking their CVs and references. Picking a tradesman or builder out of the local paper at random, beating him down on price, employing him without references or a contract and “hoping” he does a good job at a rock bottom (VAT-less) price will, in most cases give you cause to complain about cowboy builders. This will make you part of the statistics which tell us that shoddy workmanship costs the UK in excess of £1 billion per year (Source: FMB 2009) Getting a good builder or tradesman requires some effort on your part. When you choose a car you do not simply pick the first one you see. Cars are discussed with friends, taken for test drives and placed with local garages for a £50 “look over”. The MOT and registration documents are checked and every effort is made to ensure the car you would like is road worthy and fit for purpose. Cars are infinitely less expensive than houses but, in the majority of cases, when employing someone to work on your home, no checks at all are carried out. In fact it is not uncommon for a “tradesman” to be employed after knocking on a door to tell the home owner that “I am doing a roof down the road, when I noticed your chimney needed pointing”. The choice is yours but if you follow the advice of DIY Doctor Home Improver Protection Solution, you shouldn't find yourself involved with cowboys. Transparency These notes should be read by the Contractor also. They describe the full intention of the contract. As well as reading these notes we strongly suggest you view our videos on: 1: How to avoid Cowboy Builders. This is a 2-part video which runs through the tradesman selection process from start to finish. By the end of this video, if you follow the instructions properly, it’s pretty much impossible to end up with a cowboy. Part 1 can be seen here: http://www.youtube.com/watch?v=6xTErHs_8nM Part 2 can be seen here: http://www.youtube.com/watch?v=3vkllt2cvOU 2: The Desired Outcome Contract at work. Again, this is a 2-part video which interviews both the client and the builder after a £60,000 extension and refurbishment contract in South London. You can get a good idea of how easy it is to discuss this contract to make sure you both know exactly where you stand, days, weeks or months before the job starts. Part 1 can be seen here: http://www.youtube.com/watch?v=ig0v1n6nIDk Part 2 can be seen here: http://www.youtube.com/watch?v=ETd8I2ScYFk

http://www.youtube.com/watch?v=6xTErHs_8nM

http://www.youtube.com/watch?v=3vkllt2cvOU

http://www.youtube.com/watch?v=ig0v1n6nIDk

http://www.youtube.com/watch?v=ETd8I2ScYFk



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First and foremost, please ignore people who tell a client not to pay the contractor anything until the job is finished. This is completely the wrong way to start a relationship with a contractor, unless of course the contractor is happy to sign a contract in which he states he wants no payment until he is finished. In this case he is highly likely to ask you for bank details so he can do a credit check on you. We would also suggest that you insist on him taking some payment in stages so there can be no possible excuse for him running out of money before he finishes. There is no reason in the world for your contractor to spend any of his own money building your house and many good builders have been “ripped off” by customers who refuse to pay for the silliest, or fictional, reasons. This “money management” can be handled by a third party payment plan and many of these exist. They will arrange to handle the money for you. You will never be in a position where you have paid the contractor too much and the contractor will know that his money is available for him when he reaches an agreed stage of the works. Using an agreed payment schedule is the least expensive way of paying the builder and this contract forbids and requests for payment other than those outlined and dated in the signed contract. Ensure your payment schedule details exactly what is to be paid at which stage. The work in getting the right contractor is the client’s responsibility. You are advised to do the checks above and get contractors you are sure of. This should be done long before there is any need to talk about money and materials. You should be sitting down at the table to discuss these points (using the methods discussed in the video and in the notes) with a contractor you have chosen and you already feel you can trust. Why should a good contractor have to spend his own money buying materials for your house? He may get 30–60 days’ credit from material suppliers but will have to pay himself and his men on time. Trying to eliminate cowboy activity by not paying until the end can ensure that your contractor will rush through a job without concern for detail in order to get paid. Many people have told us they get over this by accompanying the contractor to the merchants and paying for the materials he orders. This is a poor and ill-advised “solution”. Good contractors have accounts at builder’s merchants. They receive good discounts on the materials they order and are often happy to pass some of this discount on to you. They keep the rest to cover their time in working out quantities, ordering, pricing and unloading etc. This is very fair. If you take your contractor to the merchants, it will be you who is paying. You will get no discount because you have no account. The contractor however may be able to reclaim the discount later as it was he who arranged the sale. You can miss out big time! It is perfectly acceptable for the contractor to ask you for a deposit on the work to be done. This allows him to purchase the materials that are immediately required. He should provide a receipt for you for this money and this is fully detailed in our payment schedule in the contract. 30% of any contract fee is approximately the amount it costs, in materials, to take the building up to “wall plate level”. This is the top of all the masonry or timber framed work reached just before the roof trusses or roof timbers are positioned. Take a look at the payment advice below to see the best way to pay the contractor.



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You are in this together and you both want to achieve exactly the same result. A good job for a fair price. If you start the contract with mistrust it will end badly. If it actually ends! 1 in 3 home improvers get involved with cowboy builders. Of that 33%-75% have tried to cut corners by demanding cheaper and cheaper quotes and arranging “cash deals” with the builders. Cash deals, with no contracts, usually mean no come-back for the client when things go wrong. Choosing the right Contractor Hiring a good contractor is made a great deal easier by using a lead generation scheme. But always ensure that the contractor you would like to with has the correct insurance. Full details on how lead generation schemes work can be found here: http://www.diydoctor.org.uk/projects/leadgeneration.htm Trades used from Lead Generation Companies should be subject to exactly the same checks by you as those chosen from other sources. A tradesman who has voluntarily purchased Public Liability Insurance is of an entirely different mindset than the cowboys. To buy insurance the tradesman is ensuring that he is protected against accidents, as are his home and his family. You also benefit from this. This means the tradesman is in his job for the long term and is not just a short-termer grabbing a few pounds here and there before trying some other form of getting easy money. Builders v Businessmen Most small businesses in the UK (not just in the building industry) start because the owner of the business was very good at what they did for their boss. They decided they could do better or earn more by going it alone so they set out on the entrepreneurial path. Most had no idea of the work involved in addition to the day to day work they expected to be involved in. They now have to “do the books”, provide their own works transport, arrange insurances, stationary, quotes, and ensure they are up to date with the latest Health and safety legislation. The list goes on and on. From doing the one job they are good at, they are now doing 20 jobs, but are still only good at one of them. The other jobs take up at least 40% of the time spent in any business and the simple fact is that any business that spends 40% of its time doing things that it is no good at, loses money. This is one of the main reasons (according to Chamber of Commerce figures and a BBC report in October 2010) a larger number of start-up businesses in all sectors go bankrupt in their first year. Poor planning and unrealistic order book assumptions mean that new businesses are not prepared for the difficulties of staying around. With this in mind we suggest you do not ask for quotes from any business that has not been trading for at least 1 year. Never mind the sob stories about “starting somewhere”. These guys are not your problem. Let them cut their teeth on someone else’s house.

http://www.diydoctor.org.uk/projects/leadgeneration.htm



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A business that does not understand business will have a small hourly rate. This rate will be for wages and designed to attract the unsuspecting customer. The reality is, with a small hourly rate, the contractor cannot afford good tools, or indeed to replace tools when they break (which they do, regularly) so these guys are constantly looking for “extras” to supplement the low price they quoted for your job. The hourly rate for work done in your home should be discussed and agreed before the work starts. There is a form in the contract for this figure to be broken down. A tradesman should be earning between £25K and £40k per year. They should also be charging for their transport costs and overheads to include breakages etc. An hourly rate of £17–£25 should be expected. When you are interviewing tradesmen, a good question to ask is, “what happens if your most expensive tool breaks on my job?” The answer you would like to hear is, “it’s built into my hourly rate”. If that is not the answer (or a form of it) that you get, you need to question further! References Having seen the quotes from your contractors, you must interview them again, just as you would a prospective employee. You need to ask them to show you at least two jobs they have done recently which bear a resemblance to your job (it’s no good having a bathroom fitted by a guy who does patios). Ask your builder to list his last 5 jobs and you can choose 2 to go and see. If the builder cannot do this, do not use him. An often used excuse by cowboys is that they have spent the last 2/3/4/5/6 months working away and the last jobs they have done are miles away. If there is any reluctance by the contractor to show you his work, you have got the wrong contractor. Good contractors are proud of what they do and are more than happy to show other jobs. Ask for contact details and talk to the customers for whom your potential contractor did these jobs. Was their time-keeping good? Were they clean and tidy? Did they come in on budget? How did the relationship go throughout the job? Were there any problems? VAT Never use a contractor who is not VAT registered for any job over £1,000. The VAT threshold is £77,000 (March 2102) and a small extension or average refurbishment job costs around £25,000. For your contractor not to be VAT registered means he has only done small jobs in the past or he has done less than 3 big jobs this year. Good contractors are ALWAYS busy so if your contractor is not VAT registered then he is either too small to do your job, or he has not been busy. There is always the possibility that the builder will say that he limits his work so that he does not get to the VAT threshold every year. Generally these guys are a little older and have decided to take it a little easier. Ask yourself if you want to take the risk that the builder then takes forever to finish your job while he “takes things a little easier”. Paying cash for your job might save you 20% but it leaves you no comebacks whatsoever should there be any problems and if the person who wants to buy your house asks to see the guarantee on the work, it will



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not be valid. Furthermore it is illegal to defraud the taxman. In short there is no reason whatever why you should use a contractor who is not VAT registered. Payment: DIY Doctor strongly suggests the use of a third party payment option which will allow you to set up payment terms with your chosen contractor to which you both agree. Some Trade Associations will carry Third Party Payment plans and you can make enquiries about these through a web search of the Federation of Master Builders or the relevant trade association. DIY Doctor manage a scheme called Trusty Payment which you can use with a specially modified version of this contract: https://www.trustypayment.co.uk/ Advantages of this scheme are:

You do not have to pay the contractor yourself, this is handled for you but you still remain in control.

If you do have a problem and the relationship with your contractor turns sour, the third party payment plan operator will sort it out and, if necessary, add to your funds to get the job completed.

When the work is complete some scheme operators provide a warranty protecting you for the next 12 months at no additional costs.

Description of works This description should be as full as you can make it. Talk to the contractor and compile this list together. It should encompass every part of the work and even list individual items such as removal of existing toilet, replacing with new. Obviously (as you will read further down) the ‘implied’ work involved with each operation is included in the price for the operation itself. For example when the toilet is replaced, the water will be supplied to it for flushing and the waste pipes will be connected to a suitable outlet. Your contractors will be professional builders and tradesmen. They should produce professional quotes. The quotes should be broken down (not necessarily into individually priced items) in great detail which lists every job which is included in the quote. You need to examine the quote carefully and ask questions about things that do not appear to be included. A good example is internal doors. These are often left out of quotes and the client assumes they are included. Please check. DIY Doctor has designed free pricing software called Price Doctor to enable you to price your job yourself. This will allow you to get a price before the builder quotes. Not only that but you can order a “shopping list” after designing your extension. This list will give you details of every nut, bolt, screw and nail required to build your extension. Discussions with the builder can then take place on a more “informed” basis. Tell your contractor that you would also like to me made aware of the works which are not actually detailed on the drawings, but are implied by them. There is more about this below.

https://www.trustypayment.co.uk/

http://www.diydoctor.org.uk/price-doctor



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Drawings and Documents The contractor will expect to work to a set of drawings or instructions which detail the work. These drawings and instructions form part of the contract. Any alterations to them should be agreed between you and an ‘Amendment sheet’ detailed and signed by both of you. All of the work to be done includes all implied work. That is work which is not specifically detailed in the documents but which, to complete the job properly to the desired outcome, needs to be included. If a door is to be replaced, the implication is that the furniture will be replaced as well unless it is specifically stated that the same furniture (hinges, locks etc.) can be reused. It is a desired outcome that the door fits well in the frame and does not rattle in the keep when a wind rushes by. The desired outcome is not just what you would expect from a contractor, but it should be what the contractor would expect of him or herself and any of their workmen. Take photographs of the job before the contractor starts and ask your contractor to take several photographs all the way through the job. You will then have a complete record of every stage of the process. Also ask the contractor to photograph anything that crops up during the day which might cause concern or which could be called ‘Extra’, or work additional to the contract fee agreed. Take photographs yourself of the progress every night and keep a full record of the work done.

Photographing the work achieves many things. You will have a complete record of work done which you can refer to if you sell the property. The contractor will probably ask for a copy for his portfolio.

You will understand the process of the build and a little more about how your house works and you

will be reassured that everything is being done according to specifications. Good contractors are proud of their work, they will not mind in the least if you photograph the process.

Photographs also give the contractor the message that you are on top of the project management and taking advantage of you is not an easy task.

Completion date Your contractor will have a good idea of how long the job will take. Ask him/her to add a suitable period on for natural problems such as inclement weather, a late delivery and maybe a van breakdown. Usually a couple of weeks are plenty for this. This shows the contractor that you are flexible, but it also says that, having been flexible, there is no excuse whatever for finishing late. Ask him/her to confirm that all materials (wherever possible) will be ordered on a just-in-time basis (i.e. they do not arrive on site weeks before they are to be used) and that any materials that need to be stored will be protected at all times.



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Take into consideration possible holiday periods and agree an end date between you. If the client is not living in the property named in the contract and will incur additional costs should the contract run over the agreed finishing time the client and contractor should agree (before starting the contract) a daily fee to be paid to the client, by the contractor to compensate for this overrun. Contact Details One of the desired outcomes of this contract is to provide good communication between client and contractor. With full contact details there should be no reason why both parties cannot contact each other with regard to any problems or delays. Rules should accompany the contact arrangements. E.G. No phone calls before 8.00am and a text is not an appropriate way to communicate. Notes should be kept of all decision-making conversations and, should they change the course of the build in any way, be signed by both parties. Insurance Make absolutely sure your contractor has the appropriate Public Liability Insurance. Many homeowners wrongly believe that their standard home insurance policy will cover the risks encountered during the building of an extension. This is not generally the case. Builders’ Public Liability insurance is an insurance policy designed to cover their business in the event they cause bodily injury or death to a member of the public or damage to a third parties property (existing house). Contractors all risks insurance (also known as contract works) is designed to meet the requirements of builders and other contractors for a comprehensive insurance solution to protect material assets such as the works in progress, stock and equipment on site and in various locations and items of plant and tools. If a near complete extension costing £75k burns down due to a contractors mistake, can he afford to re-build at his own cost? Trade Associations If your contractor does not belong to a trade association it does not reflect badly on him. Most trade associations offer many “money off” incentives for their members but little in the way of support or other benefits. Many trade associations are simply not trusted by contractors because they cost a lot to join and the reference checks made are minimal. There is quite often no advantage for a contractor to belong. It does not follow that, because a contractor is a member of a trade association, he is better than one who is not. One thing some trade associations do offer is an arbitration service. This is extremely useful if there should be a “falling out” between client and contractor. See notes below. Usually, when this happens, the only recourse is a courtroom and lengthy, costly legal battles. So much so that the client (statistically) usually walks away from the aggravation and settles for losing a lot of money and having to spend more getting the job finished. This is also very true for contractors with ‘customers from hell’ and many times contractors have been unable to finish a job because the client will not pay on time, or changes their mind about operations every 30 minutes.



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Our recommendation for finding good tradesmen is to use the search facility on our website: http://www.diydoctor.org.uk/find-tradesmen/ There are some trades which must not be used unless they belong to the relevant association. These are: Gas Installers: These guys must be registered to the Gas Safe Register (GSR) and you should check the installer has an ID card for membership to the GSR. You can check your engineer, and find out mare at http://www.gassaferegister.co.uk/ Electricians: Electrical work in your domestic dwelling must be carried out by a competent person. A competent person is someone who has been assessed independently and certified by an approved scheme to be able to provide a safety certificate to you for the work completed. You should write down the registration number on the electricians Part P registration certificate. When the electrician has finished he should give you a BS 7671 Installation certificate which proves that the work (s)he has completed complies with the building regulations. Keep this certificate safe. http://www.planningportal.gov.uk/buildingregulations/approveddocuments/partp/ Window and Door installation: The installation of external doors and windows is covered by a number of building regulations. There are regulations for the thermal performance, the safety, adequate air supply and ventilation and the means of escape provided by the door and/or window. Failure to comply with the regulations can involve having the work done again. This is very often highlighted when a house is sold and the purchaser’s surveyors ask for a certificate to prove that windows have been installed correctly to the relevant regulations. An installer registered with a trade body such as FENSA and self certify an installation. http://www.fensa.co.uk/ Solid Fuel Installation: For any fuel applications an installer should be registered on a competent persons scheme and their certificates checked. We recommend you check with OFTEC for teh rules governing your home. http://www.oftec.org/legislation.asp Oil Installation: See above and check the OFTEC website Arbitration service: If you find yourself in dispute or the relationship is turning sour it can be resolved. DIY Doctor provide this service with all works complete through the Trusty Payment service (https://www.trustypayment.co.uk/). All tradesmen that are recommended through our “Find a Tradesman” page are qualified and have adequate insurance: http://www.diydoctor.org.uk/find-tradesmen/ If other methods of getting the project back on track are not working some Trade Associations offer an arbitration service. Contract Value Make sure your contractor gives you a quotation, not an estimate. Ask also for a fixed price. A fixed price will generally only be offered under certain conditions. Definitions used in this contract:

http://www.gassaferegister.co.uk/

http://www.planningportal.gov.uk/buildingregulations/approveddocuments/partp/

http://www.fensa.co.uk/

http://www.oftec.org/legislation.asp

https://www.trustypayment.co.uk/



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Estimate: A rough idea of the cost based on many assumptions made by the contractor on the basis that further inspection is required to form a quote.

Quote: A sum representing the final value of the work based on close inspection and identification of all implied works and foreseeable problems. A quote however is subject to variation should it be agreed that works have arisen which could not have been foreseen at the time the quotation was prepared or it is found that some of the work detailed in the quote are not necessary.

Fixed Price: A sum which is not subject to variation once work has started. A fixed quote is usually only applied to specific sections of work and almost always will not come into effect until the foundation concrete has been poured and passed by Building Control.

Good contractors will look at a job and (because they have done this sort of work before) will have a very good idea of things which may happen while they are completing the works. They will not very often be surprised at anything that crops up during the course of the works. There are usually one or two unforeseeable occurrences during a contract. With a fixed price contract your contractor will build these potential hold-ups into his price. It will cost you a little more but it is also the best way to achieve peace of mind. The only time you are unlikely to get a fixed price from even the best of contractors is when foundations or other groundwork is being done. The ground, in all properties, holds many secrets and even the best of Title Deeds do not list every drain run or other obstructions. Your contractor should be able to offer you a fixed price above ground and a fairly accurate quotation for the foundations themselves. Ground conditions do vary from property to property so be prepared to allow a contingency sum for anything that crops up during the course of foundation excavation. Excavation can uncover buried “treasures” which can cause delays and much expense. We actually found a buried car (Morris Minor) in a foundation trench once! Don’t forget your contractor will be photographing the job so you can keep track of the additional costs. The contractor should state the cost of labour, material mark-up and overheads and profit before the start of the contract. Should any variations in the contract occur the contractor must show the agreed number of hours spent on variations together with receipts for the cost of materials. The correct mark-up can then be applied. Desired Outcome There is no limit to the number of pages you can include in your contract and if you wish to list every possible desired outcome of every appliance, fixture and fitting it’s fine. There is no need to do this however if you sit down with your contractor, over this document and list the rooms which are to be affected by the works and agree what is to be done within, and to them. Unforeseen problems, or ‘extras’ as they are known, are rarely unforeseeable with a little common sense. This is what this contract is about, using the common sense of a good contractor to achieve the results desired by the client for a fair financial return. It is the contractor’s desired outcome that he gets paid fairly and on time for the work he is putting in.



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Materials Your contractor should supply materials appropriate to the tasks he(s)he undertakes. These materials should be fit for purpose and sub-standard goods should not be used. If there are any failings of materials, fixtures or fittings on site the contractor may not say to you, under any circumstances, that you should return it to the manufacturer or claim under the manufacturer’s guarantee. Your contractor bought the materials; (s)he is responsible for them. If there are any material failures, the contractor should return the offending item(s) and obtain replacements that are fit for purpose. Similarly, if any of the contractor’s equipment breaks down or gets broken or stolen, it is not your responsibility and no claim can be made against you for such problems. Guarantee The contractor cannot offer you a greater length of guarantee on materials and fittings etc. than offered to him/her by the manufacturer. His/her labour and the work carried out using it should be a very minimum of 12 months. It is not unusual for a good contractor to offer a 10-year guarantee subject to the 12 months offered by manufacturers of certain items. Ask your contractor to run through the guarantee life on the materials they are using, and the terms of such guarantees. It is a strange exercise and probably one (s)he has not done before, but for the sake of a few hours research it will give you both a much better idea of what should be expected from the materials used in construction. General tidiness and hygiene Having your home turned into a building site can be distressing. It can be even worse when you feel your ‘space’ is being abused. This may not be the case, but after a few weeks of a ‘big build’ nerves start to jangle and tempers fray. This can be avoided easily by setting out the ground rules at the start. Toilet and break arrangements need to be arranged. If there is a room you are willing to set aside for your contractor that’s great. If not the contractor must respect the fact that they will need to make their own arrangements. They are all used to eating their lunch in the van. Toilet facilities should be provided, for contractor and staff, by the contractor for any job which is to last more than a few days. These “portaloos” are not expensive and the contractor should build the cost into his quote. We would always suggest (again, for jobs lasting more than a few days) that the contractor makes their own refreshment arrangements. Tea and coffee stains everywhere are guaranteed to strain a relationship and everything that can be done to avoid these needs to be arranged at the outset. Contractors are used to bringing thermos flasks, kettles etc. with them so it is not a big deal to them. Workforce Other than sickness and travel problems there is no reason for the labour force to be under strength during a contract. If it is, it usually means the contractor has bitten off more than they can chew in terms of



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time management and promises on other jobs. This clause is placed in the contract because it is one of the worst offenders in the building industry. Some contractors get greedy and start many jobs at once, diverting labour everywhere to cover them. This leads to delays and rushed (sometimes shoddy) work and must be avoided. Once signed, our contract can and should include a diary of attending trades on each day. This will also help the contractor keep track of costs for any given part of the contract. Sub-Contractors Quite often a contractor will not have the skill set (either him(her) self or within his directly employed staff) required to undertake every task needed to complete a building project. He may well call in other contractors who specialise in the work (s)he cannot do. The contractor then becomes the main contractor, with the other contractors becoming sub-contractors. It is not acceptable to expect a client to carry out the relevant checks on every person who does any work on their home and this contract explicitly states that the main contractor takes full responsibility, in every area, for the actions and work of the sub contractor and even any employees of the sub-contractor. Should the client employ contractors him/herself to cover any areas in which the main contractor has acknowledged a lack of experience, the client must not expect the contractor to take responsibility for their actions or work unless this is agreed between them. The client is advised to carry out exactly the same checks with additional contractors as we have advised be done with the main contractor. Additional work As the client, you call the shots, but your contractor may have other jobs to do also. Maybe (s)he is large enough to do several jobs at once but more likely (s)he just does one at a time. Either way, if you add bits and pieces to the work after the initial contract has been agreed it will stretch the contractor. They will obviously charge you but sometimes this cannot compensate for the frustration of having to tell their next client they are going to let them down and arrive late. If the contractor expresses concern over being late for his next job (because you would like to add work for him to do on your job) offer to visit his next customer with him to ask if he can be a little late starting. This often works well as it confirms to the contractor’s next customer that the contractor has done a good job for you. In the building industry nothing works as well as a testimonial. Think about the job long before you offer it to a contractor. Are there any additional things you would like done while the contractor is on site? New patio? Shelves in the bedroom? If you would like your contractor to do some extra work, agree a price for it before (s)he begins and keep a record of such work. It is a contractor’s nightmare to have a client who keeps adding work or changing their mind and it can lead to bad feeling. Unfortunately, many clients feel they can do anything they like as they are paying. These types of jobs never go well. Have some respect for your contractor. Their aims are the same as yours, a good job for the right price.



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If there is unforeseen work to be done (and you will have a photo record of it), discuss with the contractor (if you are working on a variable price) why this piece of work was not foreseeable or deemed to be implied by other parts of the work. There are always one or two things which crop up (rats chewed through cables etc.), and a record should be kept of the additional value of this work. If you are on a fixed price, the contractor will bear the cost of this work. This is why your fixed price will be more expensive and the contractor should investigate works before he quotes. It is not unreasonable for the contractor to ask for the costs of these investigations to be met by the client as the client could use this information to assist other contractors when they quote. If your price is variable, then use the “variation to work” sheet attached to record the time and value of the extra work. This will also help the contractor as they will be more aware of this problem the next time they do a similar job. Conclusion Treat each other with respect. Talk to each other and allow the relationship to grow. Suspicion (from either client or contractor) kills a good job, so discuss the job thoroughly, make sure as a client, you understand the process the contractor will be employing to achieve your desired outcome and if there is anything you are unsure of, ask. As a contractor, make sure the client is aware of the process. Explain why you do things the way you do and that, sometimes, even the cleverest of us makes mistakes. Do not hide mistakes from clients, just put them right and laugh about them later. Establishing a real relationship throughout a contract is the key to success. If the client acts like a dictator, the job will go badly. If the contractor behaves without courtesy and respect, the job will go badly. Client: Try and look at the contractor’s job in the way you see your own. How would you react if the boss kept changing your plans every day? How would it be if your wages were not in the bank on pay day? How would you like to be spoken to and treated? Your contractor is a very knowledgeable and highly skilled person. Their income will reflect this. If you start the contract assuming they will rip you off, the relationship will turn sour. Show the contractor as much honesty as you hope to get from them. Contractor: Look at your client’s house as if it were your own. The client is spending a lot of money, but (most often) does not have a clue about how things go together in your industry. That is pretty scary under any circumstances. Disputes: It is strongly suggested that, prior to the outset of any contract the client makes enquiries in order to have recourse to an independent advice and/or arbitration service in order to resolve disputes overdue payments and/or quality of work or other problems encountered during the course of the works. Please read the sections above regarding payment and arbitration to get some good advice in these areas.

You are advised to seek independent legal advice prior to using the Desired Outcome Contract.



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The Desired Outcome Contract has been prepared by DIY Doctor Limited with the assistance of Buckworth Solicitors (www.buckworthsolicitors.co.uk). The copyright to the Desired Outcome Contract is entirely owned by DIY Doctor Limited. If you would like a solicitor to assist you with preparing and/or negotiating the Desired Outcome Contractor, we highly recommend Michael Buckworth of Buckworth Solicitors who can be contacted on [email protected] or 020 7969 1867.

http://www.buckworthsolicitors.co.uk/

mailto:[email protected]

DESIRED OUTCOME OF DOMESTIC BUILDING WORKS CONTRACT · The object of this form of contract is to...

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Transcript of DESIRED OUTCOME OF DOMESTIC BUILDING WORKS CONTRACT · The object of this form of contract is to...