Loft conversion contract template: Example Contract – Fox Conversions

Example Contract – Fox Conversions

Example Contract
cris
October 29, 2017November 1, 2017

HOME BUILDING WORKS CONTRACT

This is a contract between

And

Fox Conversions

82 Ward Avenue

Grays, Essex

RM17 5RN

For

Loft Conversion

Client Address

This Contract is only for use where the Client is a residential occupier within the meaning of S. 106 of

The Housing Grants, Construction and Regeneration Act 1996, that is where the work is to a dwelling- house or flat which one of the parties occupies or intends to occupy as his residence.

The Client and the Contractor agree as follows:-

Scope of Work

The Contractor shall carry out the Works as described in and in accordance with the following documents:-

The Contractor’s quotation dated – 21/05/17

The Price for the Works

The price for the Works as agreed between the Client and the Contractor is £38,090.

Standard of Work

The Contractor shall carry out the Works with reasonable skill and care and in accordance with the documents listed. The Contractor must only use new materials except where the Customer agrees otherwise. The Contractor shall carry out the Works using appropriately qualified and skilled workers.
The Contractor has inspected the site and agrees that his price includes for everything necessary to carry out and complete the Work.

Approvals

It is the Client’s responsibility to apply for and obtain all necessary approvals, such as planning permission, building regulation approval and listed building consent prior to commencement of the Works.
Where work is to be inspected or approved by the local Building Inspector during the progress of the Works and on Completion, the Contractor shall ensure that these inspections and approvals are carried out at the correct time. The Contractor must notify the Building Inspector at least 48 hours before commencing the Works. (not applicable in this case)

Variations

The Contractor must not carry out any Variation (which means change, omission or extra work) without first agreeing the specification and price with the Client. If the Client wishes to make a Variation to the Works, he must first ask the Contractor for a price and specification. On receipt of the price and specification, the Client must then decide whether or not to proceed with the Variation. If the Client instructs the Contractor to make a Variation to the Works without asking for and agreeing a price then the Contractor must notify the Client of the cost increase or decrease in writing via email within three days.

Health, safety and welfare

The Contractor must keep the working areas clean and tidy and must clear up and remove all rubbish at the end of each day.
The Client will allow the Contractor reasonable use of toilet facilities. The Contractor must ensure that the facilities are kept clean and tidy and any mess caused must be cleared up immediately.
The Client will provide electricity and water for the Contractor in relation to the Works. The Contractor must make his own arrangements for cleaning his tools, paint brushes, rollers, etc. and must not use the Client’s toilet facilities for this.
The Contractor must carry out the Works in a way that does not cause risk of injury or damage to the Client, his family or guests or pets.

Insurance and damage

The Client must notify the insurers of his buildings and contents that the Works are to be done. The Contractor must have appropriate “Contractors All Risks” insurance and Public Liability Insurance.
The Client must remove any delicate or fragile furniture or possessions from the working area before allowing the Contractor access. If the Contractor causes any damage or breakages he must repair the damage or pay the Client for the cost of replacement.
The Contractor must ensure that the site is kept secure and weatherproof at all times and that materials are securely stored and protected.

Time for Completion

The Contractor shall start the Works on 03/06/17 and complete the works in ten to eleven weeks. If the Client instructs a Variation to the Works, the date for Completion may be varied accordingly by agreement between the Client and the Contractor at the time the instruction is given.
The Contractor must carry out the Works between the hours of 7:30 am and 6 p.m. Monday to Friday. Work may only be carried out or deliveries made outside these times by prior agreement with the Client. The Client must allow the Contractor access to the working areas to enable the Contractor to complete the Works on time
The Contractor must carry out the Works in a logical sequence and, where possible, complete each area of the Works before commencing the next area.
On Completion the Contractor shall hand over to the Client all appropriate certificates, instruction books, receipts and guarantees for equipment supplied and/or installed as part of the Works (as varied).

Payment

The Client shall pay the Contractor the total contract sum being the agreed price for the Works referred to under Clause 2, increased or decreased by the cost of any instructed Variation under Clause 7.
On Completion of the Works, or a stage of the Works as defined below, the Contractor is to send an invoice to the Client for 95% of the amount due. The invoice must itemise the work done.
The stage payments as follows:-

Stage 1: £5700 on completion of Scaffolding (week 1)

Stage 2: £7600 on completion of Substructure (around week 3)

Stage 3: £7600 on completion of Insulation (around week 5)

Stage 4: £7600 on completion of First fix of plumbing & Electrics (around week six)

Stage 5: £5700 on completion of Dry lining (around week seven)

Stage 6: £1900 on completion of Plastering (around week eight)

Any outstanding balance shall be paid on Completion.

Each stage payment shall be payable within 3 days of receiving an invoice for that stage.

Completion means the completion of the Works stated in Paragraph 1 above together with any instructed Variations but excluding the remedying of any minor defects.
Within one month of Completion the Client may issue one list of defects which he requires the Contractor to rectify. The Contractor shall rectify those defects within three months of Completion and notify the Client that all defects have been rectified. The Client shall pay the remaining 5% of the total contract sum within 14 days of receiving the notice from the Contractor.

Consequences of failure by either side

If the Contractor fails to carry out the Works properly or fails to progress the Works at a reasonable speed, the Client may notify the Contractor in writing that, unless he corrects his failure by 4 p.m. on the seventh day following the notice, the Client intends to end the contract. If the Contractor does not correct the failure by the seventh day, the Client may then write to the Contractor ending the contract. The Client may then employ others to complete the Works. The Contractor is entitled to be paid a fair price for the Works done by him, taking into account the agreed price under Clause 2 and the cost incurred by the Client in completing the Works.
If the Client fails to allow the Contractor proper access to carry out the Works or fails to make payment of monies due on time, the Contractor may notify the Client in writing that, unless he corrects his failure by 4 p.m. on the seventh day following the notice, the Contractor intends to end the contract. If the Client does not correct the failure within by the seventh day, the Contractor may then write to the Client ending the contract. The Contractor is entitled to be paid a fair price for the work done by him, taking into account the agreed price under Clause 2
Any dispute or difference arising under or out of this contract shall be referred to as follows:

(i) In the first instance to the conciliation service offered by HomePro. com

(ii) In the second instance where conciliation fails for any reason to Adjudication in accordance with clauses 29 and 30 below.

The Adjudicator shall be appointed at the request of either the client or the contractor by the Head of Chambers at 3, Paper Buildings, Temple, London, EC4Y 7EU (currently Micheal Parroy QC) or his nominee. The party requesting the appointment shall pay a fee of £50.00 plus VAT and the appointment will be made within 7 days of receiving the request and the fee. The Adjudicator will charge a fee for his services. The Parties are jointly and severally liable for the Adjudicators fees. The Adjudicator may decide which of the parties is to pay his fees and in what proportion. Alternatively, if both the Client and the Contractor are in agreement they may appoint an Adjudicator independently. A list of Adjudicators can be acquired from the Chartered Institute of Arbitrators on 0207 837 4483 or at www.arbitrators.org/

The adjudicator shall make his decision within 28 days of receiving his appointment. The decision will be final and binding, unless either party commences proceedings in court within 28 days of receiving the decision in which case the decision is binding on the parties until the court decides otherwise. The Parties shall co-operate with the Adjudicator and shall comply with his directions and orders for the purposes of resolving the dispute. Neither the Adjudicator nor the Head of Chambers shall be liable for any acts or omissions in carrying out their respective duties, except if carried out in bad faith.
This document is the entire agreement between the Client and the Contractor. In so far as there is any conflict between any terms in the documents referred to in Clause 1 and this form, the terms of this form shall prevail. The Law of England and Wales applies to this contract.
If this contract is signed in the Clients own premises then, the Contractor will allow a seven day cooling off period before all terms herein are applied.

Name: Name:

Signed: Signed:

The Client The Contractor

Date:

How to draw up a contract with your builder

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.