Use our top tips to help your home extension or renovation go to plan

For home extension and renovation projects, it’s always worthwhile getting a written contract with your builder. Even if you’re building a simple kitchen extension, large sums will exchange hands. Contracts don’t need to be in legal language, but they do need to outline exactly who is responsible for what from obtaining various permissions (such as building control approval) to timings, tidying up, materials, insurance and how payments will be made.  A written contract will protect you and reduce risks.

Advantages of a written contract

According to the Citizens’ Advice Bureau, as soon as you give your builder the go-ahead you have a contract with them, even if it’s not written down.  Before saying yes to a quote, always try to get a signed contract. “Be wary of contractors who don’t want to put anything in writing; it’s a sign they could be dishonest,” warns the CAB. A written contract can protect your builder too as it clarifies exactly what has been agreed and provides a benchmark. While it won’t eliminate all the stress of building work, a contract will make it more manageable.

Do I need a solicitor?

The short answer is no. If you are using an architect, they usually arrange the contact, or alternatively, you can go it alone. That said, it’s always advisable to have a building professional prepare a set of scaled drawings, plans and technical specifications before getting quotes from builders. These documents will form a key part of your contract and without them it will be difficult for the builder to know what the job involves. “The more detail you have got in writing, or on paper the better. Otherwise, the builder can say, ‘Oh I didn’t allow for this or that in my costing,” said Scot Masker of Masker Architects.

Appointing an architect to administer the contract

If you are hiring an architect, they can suggest an appropriate form of building contract and prepare drawings with technical specifications that outline your proposals. The Royal Institute of Builders (RIBA) publishes contracts, including one for homeowners embarking on smaller projects.

Hiring an architect as your contract administrator provides quality control over the build. The architect will make regular inspections, check the work is in accordance with the plans, reject defective work, deal with queries, keep track of cost and certify payments to builders. Unless you appoint someone else to administer the contract, this will become your responsibility.

How much or how little you commission an architect to do is up to you from initial design to completion on site. Architects’ fees vary with location and the size of the job.  Some architects base their charges on a percentage of the total build, others as a fixed lump sum or on an hourly basis.

Going it alone

Many of us lack experience of building work, such as a home extension or loft conversion and would not know where to start. But if you decide to hire your builder without the help of an architect, you can look at example contracts or download a contract template.

Backed by the Homeowners Alliance, the RIBA Domestic Building Contract is an agreement between the client and contactor. It can be used for extensions, renovations, maintenance and new buildings. Written in plain English and with guidance notes, it is designed to be simple and comprehensive. You can create, edit and view your contract online in draft before printing. Paper versions are also available. A digital contract cost £17.50 plus VAT and a paper version from £25 plus VAT (prices, correct April 2021).

Alternatively, if your builder is a Master Builder, they will have access to fair, jargon-free, easy to use contract templates through their membership of the Federation of Master Builders.  It is essential the contract is crystal clear and understood by both parties.

The contract

Under a contract, the client has certain rights and obligations, such as providing a description of the work required and paying the contractor for work completed. Meanwhile the contractor’s rights and obligations include carrying out the work in accordance with the contract, complying with instructions from the architect/contract administrator and taking out insurance policies.

The contract documents describe in detail the work you want your contractor to carry out, including plans and drawings. It is important the documents are kept with the contract.

The agreement is the part of the contract that is signed and dated by both parties and records the client and contractor’s rights and obligations. It is very important to make sure the contract is signed before building work begins. 

Make sure the contract covers:

• Description of the works and site address. This should also indicate if the site will be occupied during construction work, who is responsible for buying building materials, fixtures and fittings, such as new kitchens and bathrooms.
• Contract documents. List those included. It is important they are consistent with each other and kept with the contract.
• Contract period – sets out the start and the finish date which could either be a calendar date or a fixed period, for example 16 weeks after the start date.
• Facilities – identifies those to be made available to the contractor by the client, such as a Portaloo or a temporary office/respite area for the builders.
• Architect and other professional appointments by the client, such as structural engineer known at the time of signing.
• If you want specific subcontractors or specialists for parts of the building work, for example kitchen fitters.
• Consents and charges – identify who will be responsible for securing and paying for things like planning permission and building regulations consent.
• Insurance – lists the insurance policies for the work and identify who is responsible for arranging and paying for cover, for example public liability insurance and employers’ liability insurance. For each policy, state the minimum amount of cover it must provide.
• Contract price – You may agree an overall price for the work but it’s advisable to break it down into its different elements. If VAT applies, this figure should be stated separately.
• How frequently payments will be made. It’s a good idea to pay in stages as it means problems can be fixed before you make the final payment. Be clear about when payment certificates will be issued. 
• Defects fixing period – The contractor must put right all defects within a specified period, otherwise you can get someone else to do it and get your contractor to pay.
• Dispute resolution. If the contractor doesn’t do what was agreed or does it wrong, you should be able to get it fixed or get some money back. Hopefully, your architect can sort any problems but if not, RIBA has a dispute resolution scheme involving mediation, ajudication and arbitration. The Federation of Master Builders has a similar scheme.

The contract may also include other items, such as if you require the contractor to provide you with a programme of works to show the sequence of events, for example when windows will be installed. “The contract is all about clarity – who is doing what and when,” said Masker.

A building contract can provide peace of mind. It will give you more control over the management of your project to ensure it be well executed, completed on time and within budget.