New Build House and Contract

Atlast0001

Hi,

Hope someone can help.... I am soon to place a contract with a builder. They are quite small but have built 3 houses down the street (7 self build plots) there work is very good and so is there build timeframes (I have had my plot for about two years - so have seen their work) I have detailed planning approval and drawings. So questions:

1. Is it the Small works JCT contract that I should use?
2. Will the builder ( who obviously subs the work out) be the Contract Administrator?
3. I am thinking stage payments of 5x 19% of total with 5% for snagging?

Any other decent contracts that I could use?

Many thanks

Doozergirl

JCT Minor Works.

The contract administrator is ideally a third party (she says, but won't work under one).

If the builder is FMB, they have a fair contract that contains an awful lot less fluff and waffle and is fair. JCT is for people who like paying solicitors, even though it's supposed to be clear.

Payments should be based on valuations. Builder applies for payment every agreed number of days based on the percentage of each item completed. It works really well for me as a builder as I get regular payments, means my subbies know exactly when to expect payment too and I can see see exactly how we're tracking for money against the project and the client has something transparent to measure against.

Not all builders can work a spreadsheet but I'm not convinced about 19% payments. I'd rather price out certain stages at the beginning and apply for payment when each is finished.

19% is vague. Where does each of those 19% payments sit in the grand scheme?

You're going to have a house appear quite quickly and then it's going to look like everything slows down. Building a house is like colouring in. It takes a lot longer to colour in than it does to draw the outlines.

System

Have you got fully detailed tender drawings for this? Written schedule of works or specifications?

Entering a contract relies on the contract documents being up to scratch, anything less than full details will lead to some claim or another under the contract.
I quite like minor works and haven't been involved in any solicitor action (touch wood) but it needs a contactor who understands their responsibility and more importantly an employer who understands their responsibility in the contract.
You need a third party to administer the contract, it's normally the architect, sometimes a qs - their duty is to administer the contact fairly to both sides.
You really need to take advice on which contact best suits your project and the ins and outs of them, payment terms are dictated by the contract as is the retention percentage and the defect liability period.
You may also find that mortgage companies have their own requirements for releasing money (if you are funding the project that way)

Furts

You have not said if you have Full Plans Buildings Regulations. These are a must as is a fully detailed Schedule of Works, and/or fully detailed Specification.

To these items add working approved drawings for roof trusses, kitchen layout and so on.

Without any of this you cannot expect any control over your works, nor an effective contract.

The stage payments sound random and unorthodox. I would not work with these - they should reflect accepted stages of work, and realistic values for those stages.

You have not mentioned what warranty package goes with the build nor the clauses attached to this.

A suggestion is to make contact with the Self Build Centre at Swindon and /or Buildstore. I sense you may not have done your homework before engaging your chosen builder, and would benefit from good advice on this.