THE BUILDING CONSTRUCTION CONTRACT - WHY USE ONE?

If you are considering construction work to a property the building contract between you and your contractor is the one of the most important aspects of a project.  

A signed contract ensures that both parties agree in writing the details of the works to be undertaken, a programme of the works (start and finish date) the cost and how stage payments should be made.  

It will also help to prevent or remedy any problems that may occur during the construction period.

There are many contracts available to download on the internet but we would advise that a contract is selected from The Joint Contracts Tribunal (JCT) see; www.jctltd.co.uk 

(The JCT is an independent body established by the construction industry whose role is to set the standards for construction contracts).  

Unless you are familiar with a building contract or the work is of a very simple nature then it is advisable to have a consultant appointed, i.e. an Architect who is an expert in contract administration.  An Architect will advise you on the appropriate form of contract and can manage the contract on your behalf ensuring that the project runs as smoothly as possible.

The contract should cover the following items:

• The scope of work - this should describe the project in detail and refer to the contract documents which are usually a set of detailed drawings and a detailed construction specification.

• Legislative Consents - Planning permission, Building Regulations and Party Walls-has the required permissions been obtained, if not, who is responsible to obtain the approvals required?

• Access and facilities of the premises – this should state the times and scope of access to the site, permitted working hours, facilities (water and electricity supply, toilets and refreshments) and security of the site.

• Payment - details how and when the contractor will be paid.  This is usually in stages, such as completion of the foundations up to dpc, up to first floor level etc.

• The working period – the start and finish dates of the construction period and how delays are to be handled? i.e. are liquidated damages required for late completion? What is the liability period for making good defects post-completion.

• Standards – the standards of workmanship expected should be defined and how any defective work is to be remedied.  The contractor should also give you any guarantees by the manufacturers of products installed in the work.

• Variations and amendments – how are any changes to the original agreed works to be handled.

• Insurances - this should detail who is responsible for the insurance of the works.  This will depend on whether the project is a new build or a refurbishment.

• Dispute resolution – procedures for resolving disputes should be clearly defined.

Do not forget that a contract is a binding agreement for both parties.

You must ensure that you know your responsibilities and follow the specified terms to ensure that you have a good relationship with your contractor and hopefully achieve a smooth and stress-free outcome of your project.

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While every effort has been made to check the accuracy of this article, readers should always make their own checks.  

The Author does not accept any responsibility for misstatements made or any misunderstandings arising from it.

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