Drawing Up a Property Contract With Your Builders

Drawing Up a Property Contract With Your Builders

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Home renovations are notoriously complex and there are countless things that can go awry if you don’t stay on top of the process. How essential is a solid property contract you may ask?

It’s only natural with so many aspects to a big project that you’re going to face hiccups at some point, and depending on how your contractor responds to those challenges, it could derail the project entirely. 

Regardless of whether you have a good relationship with your builder or not, it’s a worthwhile use of your time to have a contract drawn up ahead of time so that everyone is on the same page throughout the renovation. Here are a few tips to bear in mind before you get started. 

Recognise the benefits of a property contract

There are plenty of things to consider when you’re planning a home renovation, whether you’re taking on a small kitchen update or a loft conversion.

But, according to the Citizens’ Advice Bureau, the moment you give the builder the go-ahead to work on your property, you’re engaged in a property contract with them even if it’s not written down. 

So, before you agree to a quote, it’s highly advisable to get a signed contract in place. In relying solely on a verbal contract, it’s easy for details to be missed or ignored, and for miscommunications to occur.

You should be wary of working with a builder who doesn’t want to have anything in writing, as it could be a sign they’ll be dishonest.

A written contract ensures that all details are captured and can be referred back to it need be, eliminating stress and financial worry. 

Establish realistic milestones

When problems arise, it’s helpful to refer back to your contract to check what was agreed. You may need to establish the time frames in which everything is completed.

Put in writing precisely what will be done, along with a realistic timeline of the order and length of time it will take to complete, along with what the builders will do to rectify any issues that might occur. 

Some things will be out of their control, such as weather holding up exterior work, but for anything that is down to your contracting team, there should be contingency plans in place. 

Appoint a professional

It can be beneficial to get someone qualified in this area to provide you with the best foundation.

They’ll have experience of writing property contracts and will know what to include to cover you fully against any mishaps that might occur. 

For example, if your renovation project entails contacting your neighbours as part of the party wall act, a surveyor can prepare a schedule of condition which covers all ‘at risk’ aspects of the adjoining property before the work begins so that if any damage is incurred, both parties are protected.

It will give you peace of mind if it has been overseen by someone qualified to draw up a solid property contract. 

Don’t be afraid to make amends

For some projects, the goal might be moved or the timelines changed to accommodate a delay in materials arriving, for example, or some other reason that requires the completion date to be changed. 

But don’t be afraid to amend the contract to reflect these changes rather than have the team rush to get the job completed to the original timeframe, as this could result in missed steps or shoddy workmanship.

If the goalposts are moved to give your builders more time to carry out the work, make sure your contract is updated in line with those new deadlines so that everyone is on the same page as to what’s expected.

Having a digital property contract in place can make this much easier to manage and change as needed. 

Make sure both parties are protected

A contract isn’t designed to just give one side of the partnership peace of mind. Both parties should have their rights and obligations protected, both in describing the work required from the client’s side and paying on time.

It also reassures both sides that work is being carried out in accordance with the contract and ensures insurance policies are taken out on the builders’ side. 

At its most basic, your contract should cover:

  • A clear description of the works needed and the site address, as well as details of whether the site will be occupied while the works are being carried out
  • Who is responsible for buying materials, fixtures and fittings
  • The contract period, detailing the finish date whether that’s a calendar date or a fixed period such as 20 weeks from the start date
  • Any facilities needed on site, such as temporary respite areas for builders, offices for project management or Portaloos
  • If there are any other teams involved, such as architects, structural engineers or subcontractors such as kitchen or bathroom fitters
  • Charges and who will be responsible for paying for things such as planning permission or building regulations consent, along with the frequency of payments from the client to the building team
  • Defects fixing period to put right any issues identified within a specified period of time
  • Dispute resolution plans to deal with larger issues

Your contract should be focused on providing clarity for both you and the building team, so that everyone is aware of what’s expected of them and when.

It doesn’t need to be packed with confusing jargon or technical information, but it does need to be comprehensive to cover all bases.

Building and renovation contracts provide you and your team with peace of mind, along with greater control over the project as you can ensure that everything will be executed to your specific requirements and completed to your set timeframe and budget. 

About the author: Dakota Murphey 

After working as a Business Growth Consultant for over a decade I developed my knowledge and experience extensively and now aim to establish myself as an expert in the field. I’ve contributed to a number of authoritative online resources which has given me the platform to share my voice with like-minded professionals.Writing independently enables a fantastic work-life balance, allowing me to travel and enjoy being a full-time Mum to my two amazing boys.