Building Work/Improvements
STANDARD CONTRACT
Many problems with building work arise through a lack of understanding between customer and contractor over the work to be done and the price to be paid. The risk of difficulties arising are much greater if there is no written record. This simple standard contract is intended to give you some idea of the details that need to be checked and recorded before a working agreement is entered into. Whilst many contractors will provide a written agreement we strongly advise you to complete this checklist also. Basic terms of contract are listed here and it may well be necessary to add to these details to cover your own particular needs. If you would like further help or have a particular concern over a contract, please contact Staffordshire County Council, Trading Standards Division, 14 Martin Street, Stafford, ST16 2LG. Tel: 01785 277888 This form is not copyright. Please photocopy as required.
Customer name: ..................................................................................................................................................... Address: Telephone no: ..................................................................................................................................................... ...........................................................................
Contractor name: ..................................................................................................................................................... Address: Telephone no: ..................................................................................................................................................... ..........................................VAT registration number: ..............................................................
(Name, address and telephone number of business/person contracting for the work, i.e: that shown on the headed quotation/estimate; whoever you will make payments to).
The Job:
1) Work to be done.
(List all the work you have asked the contractor to carry out plus any special requirements you have made. If extra space is needed attach an additional sheet of paper). ................................................................................................................................................................................ ................................................................................................................................................................................ ...............................................................................................................................................................................
2) Will a sub-contractor be used?
(Are you prepared to accept a sub-contractor? If so, write in the sub-contractor’s name). Contractor name: ................................................................................................................................................. Address: .................................................................................................................................................
3) Materials to be used. (Attach additional sheets of paper if needed).
(You were probably given a schedule or a specification and/or drawings with the contractor’s quotation. Check carefully that these describe the work you want. If not, ask the contractor for a list of references/types, quality and quantities or dimensions of materials agreed, e.g. type of bricks, window frames. If the work includes loft insulation get samples if possible. Check everything well). ............................................................................................................................................................................... ................................................................................................................................ ............................................... ...............................................................................................................................................................................
4) Date work will commence. 5) Date work will be completed.
...................................... ........................................
(Ask for a starting date. If the starting date is essential make this clear and note this fact).
(Ask for a finishing date or approximate date the work will be finished. If the work must be completed by a certain date make this clear and write it in here). 1 of 2
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The Price:
1) Price agreed. £............
(Obtain a final fixed price or written quotation. An estimate is a guide and not binding. Check the price includes V.A.T. If the contractor is unable to give a fixed price, ensure that you obtain a percentage margin, e.g. not more than a 10% variation either side of the agreed price).
2) Form of payment.
................................................
(Specify whether cash and/or credit. If paying by credit always shop around for the best deal! Make sure you obtain answers to all the questions listed).
3) Credit details
a) Who will arrange the credit? (specify customer or contractor) .................................................................. ................................................................................................................ ................................................................................................................ ................................................................................................................ ................................................................................................................ ................................................................................................................ b) Name of finance company? c) Any deposit?
d) Amount borrowed? e) f) Interest to be paid? Total credit price?
g) Amount of each instalment? ................................................................................................................ h) Number of instalments? i) ................................................................................................................
A.P.R. (annual interest rate) ................................................................................................................
4) When is payment due?
................................................................................................................ (Payment can be made: (i) when you are satisfied with the completed work, (ii) by stage/part payments – paying for sections of work that have been completed to your satisfaction. A detailed invoice must be provided before any (full or stage/part) payment is made). A Building Regulation Completion Certificate should be obtained prior to payment of the final invoice.
5) Deposit details.
(Is a deposit necessary? If so, consider whether the amount is fair. Do not pay lump sums to cover the materials for the whole job). .................................................................................................................................................................................
Other Conditions:
1) Cancellation rights.
(List the reasons, if any, when you may cancel the contract. e.g. if you or the contractor are unable to arrange credit or if you are given a cancellation period). ..................................................................................................................................................................................
2) Planning permission/building regulations.
(Is planning permission and/or building regulations approval required? If so, whose job is it to obtain approval and what are the deadlines? ................................................................................................................................
3) Special instructions/conditions.
(List any special instructions you have given the contractor or any promises the contractor has made). ....................................................................................................................................................................................
4) Insurance-backed guarantee schemes.
Look at the terms very carefully. Insurance backed guarantee schemes cost extra money but will given some extra protection if the contractor goes out of business. Customer’s signature: .................................................................... Date: .................................................
Contractor’s signature: .................................................................... Date: ................................................. ARE YOU SATISFIED WITH THIS INFORMATION. REMEMBER, A SIGNATURE IS BINDING ON BOTH PARTIES. 2 of 2
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