Hindsight is a wonderful thing and it is usually only after a dispute has occurred that a householder will reflect on why they did not enter into a written contract in the first place. By this point however it is usually too late!
Source: http://www.thehomeguru.net/
In general terms we are very trusting folk here in the UK and we often rely on good will as well as blind hope, in the expectation that work being undertaken to our homes will be done to a high quality, within agreed costs and without any problems.In an ideal World this would no doubt be the case, however the reality is very different.TV shows such as Rogue Traders, Cowboy Builders and the like highlight some rather stark examples where the initial excitement of building works have quickly evaporated and been replaced with anger, stress and worry, as the relationship between a building contractor and householders turns soar. I published an article about this time last year (link), which provided some practical suggestions of how a householder can avoid this scenario happening to them.One of the suggestions I made within the article was to ensure that everything was recorded in writing (I mainly focussed on costs), however for this article I want to consider a more formal arrangement, such as the use of a written contract.
If a householder requires work undertaking within their homes, a usual first port of call would be a telephone conversation with a building contractor, followed by a visit. During the visit the householder will outline what works they propose and the building contractor will give an initial assessment and invariably the conversation will come around to costs. Very rarely, particularly at this point will the issue of a written contract be considered and in fact it is likely that the vast majority of works carried out within UK households, are completed without any written contract at all. Even in the absence of a written contract, a householder can enter in to a legally binding verbal contact with a building contractor, however, as you would imagine, in the event of a dispute, it will be much more difficult for either party to prove that particular terms and conditions were discussed and agreed.
Source: http://easyplanbuildingsolutions.co.uk/
It therefore seems to make sense for householders and building contractors to enter into a written contractual agreement, which will clearly set out the various terms and conditions that they agree, but crucially however provide written evidence of the agreement.Through the UK doctrine of freedom of contract, both parties are free to enter into whatever terms and conditions they want, without interference from the courts.These terms and conditions could be written in whatever detail and format both parties are comfortable with and can range in complexity from a single sheet of A4 paper to a standard form of contract such as a Homeowner Contract or a Minor Works Contract.There are many other standard forms of contract available, however, the nature and complexity of the vast majority of householder’s works will not require anything more complex than those contract types indicated above. Standard forms of contract can be ordered on line and vary in costs depending upon the selected contract.For example a householder can purchase a JCT Homeowners Contract at a cost of around £20 (link), which given the disputes and costs that can be avoided is money extremely well spend.These types of contract are written in a very understandable way so you do not need to be an expert in order to use them.Also, standard forms of contract allow for adding and deleting of clauses, sections and words as deemed necessary by each party, prior to signature.Just remember to undertake amendments carefully, as once the contract is signed, both parties are legally bound by the terms.
In the event that a dispute arises during or even after the works have been completed both parties can refer to the written contract to help them to resolve the dispute. All too often disputes occur and indeed escalate because there is a difference of opinion about ‘what was said’, or ‘what was agreed’. A simple written contract can therefore set out terms for costs, payment dates (and amounts), timeframes. More detailed contracts will stipulate procedures for variations, dispute resolution, insurance provisions, procedures for termination etc. Without a written contract both parties are exposing themselves to unnecessary risk and uncertainty should a dispute arise. This is something that householders often choose to ignore when undertaking building works in their homes, possibly as a result of lack of awareness, possibly ignorance, possibly not wanting to be viewed as ‘unfriendly’ by the building contractor and even possibly just plain acceptance that there just will not be a written contract. Hindsight is a wonderful thing and it is usually only after a dispute has occurred that a householder will reflect on why they did not enter into a written contract in the first place. By this point however it is too late!
The lesson here therefore has to be that once a householder discusses work (and costs) with a building contractor, they should ensure that they also make the building contractor aware that they plan to ask them to sign a written contract prior to the works commencing. In order for this to happen the householder should be satisfied with the scope of work proposed, the timeframe suggested and of course the overall cost of the works, are what they expect and therefore what they are prepared to agree too. This may require a number of weeks (possibly longer) of negotiation between both parties in order for them to arrive at mutually agreeable terms. Once this happens both parties will understand what is expected of them and this will help to eliminate any uncertainty. This in turn will reduce the possibility of disputes occurring and in any event, will provide a way of dealing with disputes should they arise. If you are a householder planning an extension or a refurbishment or in fact any other building works to your home, in the immediate or near future it is worth taking the time to prepare and negotiate a written contract with your building contractor prior to works commencing for all of the reasons discussed above.
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Trust is something in which we expect that services provided will be as advertised or discussed and that those who claimed to deliver such services will be competent to do so.Unfortunately, there are endless examples where this trust has been mis-placed, as there are plenty of unscrupulous people out there who are waiting to exploit this situation.
There are times when we need to engage the services of a builder, contractor, tradesperson, (call them what you will), when we are considering building work or indeed in the event of an emergency.Selection of ‘the right person’ is often determined by random selection based upon a brief search through Yellow Pages, a quick internet search or a card displayed in a newsagent’s window.This leads to us placing our trust in people we know very little about and allowing then access into our homes/buildings. Trust is something in which we expect that services provided will be as advertised/discussed and that those who claimed to deliver such services will be competent to do so.Unfortunately, there are endless examples where this trust has been mis-placed, as there are plenty of unscrupulous people out there who are waiting to exploit this situation.
Knowledge of home repairs and building works is something many people no little to nothing about and therefore prefer to pay to have these types of work carried out.Therefore, if a ‘builder’ is invited to give advice and a quotation, most people will not have the expertise to assess whether the work they are proposing is appropriate or indeed necessary, or whether it represents good value for money or not.So why do we seem to make these rash decisions?This is likely to be due to the urgency of works, our trusting nature, confident and sometimes intimidating behaviour (from the 'builder'), cheap price etc.It is decisions made on this basis that can lead to very significant problems and disputes, and this approach should be avoided at all costs.
In March 2012 the Office of Fair Trading (OFT) published their Home Repairs and Improvements Toolkit which in the introduction states: ‘In the 18 months from January 2009 to September 2010, advice service Consumer Direct received over 146,000 complaints from consumers about problems they had experienced with home repairs and home improvement projects’.As a result the OFT together with the Citizen’s Advice Bureau, Trading Standards and Local Authority Building Control and Planning departments, launched a campaign to raise awareness amongst consumers around how to manage home repairs and building works.The toolkit considered that raising public awareness through the media would be the most effective way of dealing with this issue, however, below I offer some practical suggestions that should be considered when engaging building and repair works:
1. Do your homework
Always take the time to do some research to find out about the people you are thinking of using.How long have they been trading?, do they have a website, if so can they show you examples of their work?, are there previous customer reviews. Have they got a track record for the type of work you require? Do they have the accreditation they claim?If you cannot find this information on-line, then ask for details of previous similar work that has been carried out and contact details.Good builder/tradespeople are proud of their work and would be more than happy for you to talk to their ‘satisfied customers’.If a builder/tradesperson is not willing to provide this information for you then do not employ them!
2. Obtain alternative quotations
Never appoint a builder/tradesperson on the basis of one quotation.When you go to a supermarket you often have the choice of numerous similar products, which you will assess at in terms of quantity, quality and cost.You will consider these factors and then make an informed choice.This is exactly the same approach you should take when considering home improvements or building works. If you instruct building work from the first quotation you receive it is the same as going into to supermarket and picking up and paying for the first thing you see.How can you be sure you have got good value for money.
3. Get things in writing
All quotations should be received in writing.Failure to receive a written quotation can lead to disputes and misinterpretation in what you ‘thought’ you had been told and what is actually provided.Legally, there is such thing as a verbal contract, the problem is, how can you prove someone had said something, if they are claiming otherwise?Written quotations will avoid this, however it would also be wise to have the quotation broken down into as much detail as possible.A detailed breakdown, with costs attached to each item, will reduce uncertainty, for yourself and the builder.Also, do the costs include VAT?
4. Payment
It is common practice for a builder/tradesperson to request an upfront payment for ‘materials’. I would suggest that as part of accepting the quotation that you also agree a payment schedule, which will include any upfront payments (which should be limited).Payments should be spread over the duration of the works and based on progress with a final payment held back until the work is complete.Never pay large sums of the works cost upfront. As works are progressing, only pay the builder/tradesperson for the work they have completed.Always ensure that you are kept in a position that if the builder/tradesperson failed to complete the works (for whatever reason), have you got enough money left in the project to pay someone else to complete it?If the answer is no then you have probably paid too much too soon.
5. Never accept cold callers
Never be tempted into considering ‘deals’ from cold callers.Many of the horror stories we hear relate to those who have felt pressurised into paying for work they did not need, was far too expensive (sometimes extortionate), and completed to a very low standard (or sometimes not completed at all).Avoid cold callers at all costs.We have possibly all been in a situation where we open our front door and are greeted by someone who appears to be plausible and knowledgeable, however do not be fooled!You will undoubtedly be offered the deal of the century, however in life you get what you pay for, so to quote a popular phrase, ‘if it appears to good to be true, it probably is’.
Typical ways in which you may be approached may include:
‘I am working over the road and noticed that you have some damaged tiles on your roof.While I’m here, I’ve got my ladders and just happen to have some spare tiles, do you want me to take a look?.Answer - NO!
‘I’ve just re-surfaced your neighbour’s driveway and I’ve got materials left over.While I’m here I can do you’re drive for a really cheap price, but I can only do it today.What do you think?Answer – NO!
‘We are in the area today only and offering significant unrepeatable discounts for a small number of customers who agree for us to use their property for marketing purposes.We will take pictures of the work we do and include it in our marketing literature’ – Answer – NO!
‘You will need to sign up now.The manufactures price is increasing after today’ –Answer –NO!
‘I will give you a good deal for cash’ – Answer – NO!
If this is suggested it should immediately raise alarm bells as, firstly it is illegal and will undoubtedly be work ‘off the books’, thereby avoiding tax and VAT payments. Anyone who is prepared to suggest work in this way is not the type of person you can have an faith or confidence in as their honesty is already compromised.
For work that is not a 'one off repair', for your own protection I would always recommend that you obtain at least a basic building contract such as a JCT Homeowner or Minor Works Contract, and ensure that this is signed by yourself and the builder before works commence. I will be discussing building contracts in more detail in a new article in the near future so be sure to take a look.
The video belcome (from You tube) gives an example of what can happen if you are not extremely vigilant when selecting 'builders' to carry out work for you.
Please feel free to share this article and other articles on this site with friends, family and colleagues who you think would be interested
Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.
