Don't want to be another builder dispute statistic?
A recent survey found that 2.5 million UK homeowners have had a dispute with their builder in the past three years alone.
The situation is pretty dire.
However, the good news is that the vast majority of these disputes could have been prevented with the proper contracts and agreements in place from the start. Once you've narrowed down the list of builders online, navigating contracts is the first step in protecting yourself from expensive pitfalls.
Let's look at some of the most important tips and advice on this front.
What's Inside This Guide:
- Why Builder Contracts Matter More Than You Think
- Key Elements Every Contract Should Include
- Red Flags To Watch Out For
- How To Protect Yourself Before Signing
Why Builder Contracts Matter More Than You Think
Shockingly, most homeowners completely skip the contract stage.
They shake hands, agree on a ballpark price, and then get excited to see work start. And that's where all of the problems begin.
If there is no written contract to prove what was agreed upon, there is literally no evidence that can be presented if a dispute occurs. In other words, no contract, no proof.
Think about it this way…
You wouldn't buy a car without paperwork, right? So why would you trust a building project worth thousands to a handshake?
Builders with no contracts
Let's just focus on the builder side of things for a second.
Why would any builder sign a contract?
The simple answer is because they know they should.
Reputable builders with several years of experience know that most problems arise from misunderstandings and miscommunication. A detailed, clear, written contract protects the builder just as much as the homeowner.
Clients often try to get around or change contract terms halfway through projects. A good contract anticipates this and has clear dispute handling procedures in place.
When looking for a trusted builder in your area, always prioritise those who are willing to work with written contracts.
They are the ones who tend to stick to the original plan and budget because they have it clearly stated in writing. Clients feel they have more power to try and alter the terms if there is no contract. A contract actually limits consumer power to a point.
Key Elements Every Contract Should Include
Not all contracts are created equal, though.
A 2024 adjudication report found that 50% of construction disputes stem from inadequate contract administration. Half of all disputes could be avoided with better paperwork.
Just because you both sign something written on the back of a napkin, it doesn't mean it will hold up in court.
Builder contracts need specific elements to actually provide a layer of protection for both parties. Without these elements, you might as well not have a contract at all.
Your contract needs to clearly include the following points:
- Scope of work. What is the builder actually going to do? Be specific. "Build an extension" doesn't cut it. Include square footage, materials, type of windows, tiling, etc.
- Total cost. How much is the agreed price for the entire project? It should cover all labour, materials, and other associated expenses.
- Payment schedule. When will payments be due and how much? Never pay everything upfront.
- Timeline. Include start date, key milestones, and final completion date. What are the ramifications if deadlines aren't met?
- Change process. What happens if there are variations to the original scope of work and how will they be priced?
Pretty simple, right?
These five items cover most of the common pitfalls that turn verbal agreements into building nightmares. Yet most verbal agreements leave off at least three of these points. And that's why things quickly spiral out of control and lead to bitter disputes.
Red Flags To Watch Out For
Keep a weather eye open for red flags that a builder should not be trusted.
Avoid anyone who:
- Insists on not providing a written quote. A builder who does not want to commit to a written price has ulterior motives.
- Asks for large upfront payments. Professional builders have a structured staged payment system that only demands a small percentage upfront.
- Fails to specify materials in writing. Terms like "good quality" and "client decides" are not good enough. Everything must be specific.
- Pushes you to sign immediately. All legitimate professionals allow time for you to review terms and have a second opinion.
Think about this…
Trustworthy builders actually embrace detailed contracts. They welcome your involvement in writing everything down.
Why?
Because it protects their reputation and livelihood just as much as it does yours.
Builders who get defensive about putting everything in writing are the ones you want to avoid.
How To Protect Yourself Before Signing
If you're ready to sign a contract, wait.
There are some vital steps to take before putting pen to paper that will help you sleep at night.
- Verify everything. Check the builder's credentials and insurance cover. Ask for proof of public liability insurance at minimum.
- References. Request references from previous jobs and actually call those references. Ask specific questions about their experience.
- Quotes. Always get a minimum of three quotes from different builders for comparison. This weeds out prices that are wildly out of line with the norm.
- Contract review. Read every word in the contract, multiple times. It is boring and tedious, yes. Worthwhile? Absolutely.
- Hidden clauses. Look for additional charges added to standard costs. Some contracts sneak in extra terms about variations and extra work.
- Reasonable payment schedule. Staged payments based on work completed. Industry standards suggest no more than 10% up front.
- Document. Take before work photos of existing conditions. Keep all written correspondence. Ask for receipts for materials purchased.
Handling Disputes When They Arise
Yes, even with the perfect contract in place issues can arise.
Handling them properly is half the battle. Keep your emotions in check, and follow the agreed process from your contract. Anger and emotional responses rarely help anyone.
Start with communication:
- Write your complaint immediately. Email is better than text as it creates a permanent paper trail.
- Refer to the contract. Cite specific terms and conditions that are being breached.
- Allow reasonable response time. Most problems can be resolved through open discussion if both parties remain professional.
If direct communication doesn't resolve the problem:
- Mediation can be an alternative before taking legal action. It is quicker, cheaper, and usually more effective than a court case.
- Trading standards office. If you live in the UK you can always contact your local office for guidance. They can advise you on your rights as a consumer.
Closing Thoughts
Contracts and agreements with local builders don't have to be overly complicated.
In fact, the fundamentals are quite straightforward. Write everything down. Be as specific as possible. Understand the payment terms before any work begins. Follow those simple steps and you'll be well on your way to a stress-free building project.
The vast majority of builder disputes are down to misunderstandings.
Misunderstandings that a proper written contract eliminates entirely. Both the client and the builder know exactly what they are expected to do from day one.
To summarise:
- Always insist on a written contract before any work starts
- The contract should include specific details about scope, cost, timeline, and payments
- Be aware of red flags like large upfront payments or vague terms
- Document everything as the project progresses
- Put issues in writing as soon as they occur
Finding builders in your local area and protecting yourself from disputes with written contracts is the foundation for a successful building project. Don't skip this step and join the other 2.5 million UK homeowners with builder disputes.
