Contract essentials

3 December 2012

I am considering a self-build but am concerned about contracting out work. Should a formal contract be written between the two parties?

Answers

You will definitely need a formal contract. If you are appointing a builder to undertake the entire works package then a Joint Contracts Tribunal (JCT) contract is a must. If you are not retaining an architect in a supervisory role then there is a JCT consumer contract between a homeowner and a builder, written in plain English and available (alongside DIY will kits) from retailers such as WH Smith or from the RIBA Bookshop (020 7256 7222, www.ribabookshops. com). There’s also a version for use with an architect or other professional adviser. If you are subcontracting the trades direct, then it’s best to place every order in writing attaching a copy of the subcontractor’s written quotation and including within the order your payment period (14 days suggested), any retentions proposed and associated defects liability period (typically one year). Most importantly, include an indication of your programme of works, which should be for information only as far as the subcontractor’s start date but should show clearly the duration of the works at each stage. You need to discuss this aspect with the subcontractor as part of the pricing process and agree the time needed for each stage before you actually award the subcontract. Finally, a tip: subcontractors respond best to clients who are well organised, have all the materials required on site before they start and who pay promptly when the work is complete. Never make any payments up front.

3 December 2012

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