Choosing the right builder and building contract
A quick Google search for a building contractor in London or Kent will result in pages of companies to choose from. So how do you choose the right builder and feel confident that your project will meet your expectations?
In this article, we will break down the best way to go about choosing a building contractor, and why it’s important to have a building contract in place.
How do I choose a residential building contractor?
There are five key things to consider when finding a building contractor:
- Recommendations – A good way to get started is to ask around and see who else has had work done locally. Make sure that the work you are comparing is similar to yours.
- References – Reputable contractors will be happy to provide references. Ask around about the people said contractors have worked with before, as well as costs and variations, quality of work and whether they kept to their programme. Ask how they maintained the site, as this is a great indicator of an organised builder. Most importantly, have a look at their previous work.
- Waiting time – Ask the builders their availability. Good contractors are always busy. If the contractor can start on Monday or has “a cancellation”, then be alert. You should expect to wait several weeks or months for them to start.
- Employees – Ask how many direct employees they have and what elements of work they will subcontract. It’s common to subcontract electrics, plumbing, plastering etc, but unusual for most basic building trades to be subcontracted.
- Quotes – Once you’ve made a shortlist of three or four builders, ask them for a quote. You will need to give them a reasonable set of drawings and a schedule of work (be clear what you’d like built so that the contractor is clear on what is expected of them, as this will help them price correctly).
When you receive quotes, don’t be afraid to ask for additional information. Most likely, the quotes you get will be very similar. Don’t worry if one is particularly high, as sometimes a contractor prices high if they don’t want the work. If one is significantly cheaper than the other though, be alert. Anything more than 15% under is cause for questioning.
What is a building contract?
A building contract is a legally binding agreement between yourself and a contractor to carry out specific works. A formal building contract will protect both you and the builder. If the builder doesn’t want to sign one, then we recommend avoiding them. One of our biggest sources of expert witness work is for residential building projects that have gone wrong. In almost every case, there is no adequate contract in place.
What should be included in the building contract?
There are building contract templates that you can use. We recommend the JCT Homeowner Contract or the RIBA Domestic Building Contract. If you don’t use these then you can still agree to a written building contract signed by both parties.
The contract should include:
- Proposed works.
- How much you will pay the builder.
- Timelines – how long the builder has to complete the work.
- When stage payments will be made (there is no hard and fast rule for this, but every two or four weeks may be ok). You might also agree a retention against any defective work 2.5% is typical for six or 12 months.
- Dated signatures by both you and the contractor.
At its simplest, a building contract will say (for example):
“Mr A Smith employs ABC Building Contractors to build an extension, as shown on drawings 1, 2 and 3 appended.
Mr Smith will pay ABC £27,300.00 plus VAT for the work as detailed in the quotation dated 01.04.14 appended.
The work will start on 15.05.14 and take 12 weeks.
A payment will be made every four weeks and a final payment will be made on completion of the works.”
What if my building contractor wants payment upfront?
Never under any circumstances should you pay any money upfront. If a contractor has cash flow problems, then be alert. Always pay for completed works.
If you agree to purchase components or materials (such as bathrooms), make sure you buy them yourself, take delivery, and ensure that the receipt and delivery note are in your name. This way, you can prove ownership if there’s a mistake.
If the builder insists on money upfront and you are agreeable, offer to put it in an escrow account and properly document this in the building contract.
Does the building contract protect me against extra costs?
It won’t necessarily protect you against extra costs, however you can agree in the contract what these might look like. With any building project, you should allow yourself a contingency (10 or 15% is typically ok) for unforeseen items.
Each time you ask the builder to do something that isn’t on the drawing or in the schedule of works, you are likely to be charged, as it’s considered an ‘extra.’ Try to agree to any additional charges before work is carried out. If you ask the contractor to do a lot of extra work, then the programme will be affected and you’ll have to agree to extra time for the builder to finish.
Make sure you do not over pay the contractor at the beginning of the project. If the builder doesn’t have enough money to finish a job before you have paid, then it’s likely that they won’t finish – regardless of what you have paid already.
What if the work gets blocked by a neighbour, or doesn’t meet building regulations?
It is your responsibility to get the appropriate or relevant consent before starting any building project. You should do this before agreeing to any contract with your builder.
You will need architectural drawings to get planning consent, agree party wall awards with neighbours if necessary, and get licences to build over drains etc. If you do not have these and there is any delay because of this, your builder might be able to charge you extra for the delay.
In terms of Building Regulations, the builder will usually include dealing with the building inspector in their quote and project plan – do confirm this with your builder though. They may use an “approved inspector”. To avoid any issues, you might want to hold some money back at the end until a Building Regulation Completion Certificate is issued.
How can a Chartered Surveyor in Kent or London help with my building project?
Project management requires a lot of time and can be very stressful, but our building surveyors in Kent and London can help. Collier Stevens can act as a contract/project manager and administrator. We can work with your architect and building contractor, prepare schedules of work, and ensure you have all party wall matters in hand. We can also do schedules of condition before any work begins.
Once the project is underway, we will take responsibility for managing variations, extras and costs, check on quality and programme and agree what should be paid for what and when.
Get in touch with Collier Stevens for project management support
Ready to get the ball rolling? Get in touch for project management services in Kent, London, Folkestone and Thanet.
Steven Way
Steven Way BSc MIHEEM MFPWS MRICS is the Practice Principal and is a Chartered Building Surveyor. With over 35 years as a practicing surveyor, Steve has a wealth of experience and expertise in both residential and commercial building surveying, party wall advice and disabled access auditing. He has also built his reputation as an expert witness.