Customers are not usually aware of what a good builder’s contract should include. This article has been written to provide you with an outline of the main points which should be covered in a contract for a residential building project up to about £75,000 in cost.

1. Cost: in the contract the builder should clearly state the cost of both individual works and the cost of the entire project. The builder should also separate the costing in the contract to include the following:

A. Cost of materials: If you are going to provide the materials to the builder, he should still provide you with the cost of any supplies coming from the building company, e.g. mortar, insulation material etc.

B. Labour costs: the builder should state his labour costs in the contract. A good builder should not be reluctant to state his charges.

C. Any miscellaneous costs: builders often forget to add miscellaneous costs which are consequently left uncalculated for in the initial budget forecasts. These include costs such as congestion charge if the project is based in London and skip hire etc.

2. Payment method: the contract should clearly state the payment structure for the project which you and the builder should both be happy with. This should include any deposit payment you will have to make before the project commences and the stages of completion at which the consequent payments will be made. Make sure you don’t pay the entire amount to the builder until the total job has been completed.

3. Specification of works: the contract should describe the works which will be conducted in sufficient detail to ensure that the project is completed to your satisfaction. You should take time to discuss the exact specification of the work with you builder and have this in writing so that there are no problems once the work commences.

4. Guarantees: all good builders in London provide guarantees for the work which they undertake. Make sure any guarantees are clearly stated in the contract and the time frames for which they are valid.

5. Penalty clauses: many developers like to add penalty clauses into the contract to ensure that if there are unnecessary delays from the builders end, then the builder is liable for the extra costs incurred.

6. Contact details: the contract should clearly state the name, address and contact details for both parties. The contract should also be signed by yourself and the builder to ensure its validity.

Apple Construction specialises in all types of residential building works and can be contacted on 0845 224 9214 for more information.