Building Contacts and Depoist

Biggie

Ok builder has sent me he's first draft of the contract..

Domestic Contract for minor building work (FMB) is this a standard contract and also he wants about 4% as deposit and then from what I can tell there's 15 stages and the build is always slightly in the money.

Is this normal ?

bobhawke

You can find a bog standard building contract here:
http://www.fmb.org.uk/find-a-builder/free-contracts/

Depending on size of build it is also standard to pay in stages eg: 25% paid when foundation is down etc

Make sure you read over the contract carefully, if it is a limited company and you are spending a lot of money then it is worth spending a few quid extra to check the company and it's directors out at company house ie: Decent turnover / profit, have the directors been directors of a lot other companies that have been dissolved, do they have any county court judgements against them or pending?

Check to see if they are a member of any trade associations and what guarantees they provide should the work not be up to scratch or if they go out of business.

Biggie

great thanks will do all the checks

So is deposit normal also retainer is 2.5 % in 3 month 2.5% in 6 months

jamesperrett

I would go for payments when certain stages have been reached rather than at set time intervals. I've never paid more than 10% up front and would be more comfortable with a firm that didn't ask for anything up front. Reputable builders normally have credit accounts with their suppliers so shouldn't require payment up front for materials.

James.