Before the work starts

Contents

1. Minor jobs 2. Bigger jobs 3. Planning the work 4. Tradesmen contracts 4.1. Complaints about contracts 5. What should be included in a contract 6. Unfair terms in the contract 7. Your cancellation rights 7.1. Buying from a door-to-door salesperson 7.2. Buying over the phone, on the web or by mail order 7.3. Buying on credit 8. Paying as you go 9. Package deals 10. Useful organisations 10.1. Federation of Master Builders (FMB) 10.2. Royal Institute of British Architects (RIBA) 10.3. Royal Institution of Chartered Surveyors

For minor works, if no suitable contract is supplied by the tradesman, you should consider drawing up your own building contract. In outline, this should provide for what work is to be done, what price is to be paid and how it is to be paid, the time when work can be carried out and within which the work is to be completed and who is responsible for dealing with any applicable requirements for planning permission or building regulations consent.

If there are plans and specifications for the work, details should be included within the agreement. The work must be clearly defined in the agreement so that there can be no doubt as to exactly what the contractor is expected to do. If the owner is to provide the materials, it should be stated in the agreement. If the owner has particular requirements as to the materials to be used, that should be specified.

If possible, you should try to include a clause to oblige the contractor to pay the owner money for each day that completion of the work has been delayed where the delay is the fault of the builder. The amount of money inserted must reflect a reasonable estimate of the loss that the owner will suffer if completion of the work is delayed.

For bigger home improvement and building jobs, there are extra things to think about.

Step 1: Do you need planning permission?

• Does your work need to comply with building regulations?
• Do you need listed building or conservation area consent?
• Check with your local authority’s planning and building control department.

Step 2: Do you need your neighbours’ agreement?

Check whether any fences and walls you have in common will be affected. Discuss and agree this with your neighbours. If the builders are going to need to access your neighbour's land, you will want to make a request for access to your neighbour's land by letter.

Under the Access to Neighbouring Land Act 1992, if an adjoining owner does not give his/her consent, you can apply to your local county court for an order to carry out repairs which are reasonably necessary.

The Access to Neighbouring Land Act 1992 does not apply in Scotland and there is no equivalent legislation. However, a person may be granted access to a neighbouring land for specific purposes by a servitude or an ancillary real burden, both of which are types of title condition and may often (though not always) be found by examining the title deeds. In addition, those who live in a tenement (such as a block of flats) have rights under the Tenements (Scotland) Act 2004. This Act includes provision allowing owners of a property in a tenement reasonable access for repairs etc. over the property of other owners.

The Access to Neighbouring Land Act 1992 also does not apply in Northern Ireland and there is no equivalent legislation. In Northern Ireland, there may be covenants contained with your title deeds making provision for access to neighbouring land for maintenance and repair works, however, you should seek legal advice when trying to impose these if your neighbour has refused you access.

Step 3: Do you need a professional to help you plan the project?

A professional, such as an architect or surveyor, may be able to help with designing, planning and managing larger or more complex jobs. If they employ sub-contractors, they are responsible for the quality of the sub-contractor’s work.

Step 4: Have you told the company which insures your house that you are having work done on it?

You should inform the company that you are having work done on your house.

Draw up a list of what work is to be done, to be used as a basis for traders to quote a price for the work or to give you an estimate. To help the builder come up with a quote, you might want to include the following information:

• Preparatory work: removing defective paint, ensuring surfaces are made good before repainting, removing rotten wood from window frames and so on
• Protection of existing features: for example, if you want parts of your property, such as mouldings, fireplaces or woodwork, to be protected against possible damage
• Materials: if you want certain materials to be used, say what they are, such as which roof tiles, what type of paint and how many coats of paint you want
• Location, access and facilities: specify where the work is to be done, how the trader will get in, what storage space is available, what water, electricity or phone utilities can be used
• At the end of the job: state that the site should be left clean and tidy, with rubbish and any unused materials removed

Even if you are only having minor renovation work done, you should consider drawing up a contract between you and your builder. If you are presented with a contract that has already been written, you should not sign it until you have read it. If you disagree with any of the terms, you should ask the tradesman to remove them or come to an agreement about alternative terms.

When you ask someone like a builder, plumber, electrician, or gas installer to carry out a service, you have entered into a legally binding contract with that tradesman. The tradesman's obligations when you enter that contract are defined as follows:

• The terms of the contract between you and the tradesman you appoint
• The Supply of Goods and Services Act 1982

This Act adds a number of terms to the contract in order to protect all consumers. While this Act does not apply in Scotland, Scottish common law provides similar protection. According to the Act, if the contract does not specify prices and dates, it must be completed in a reasonable time and for a reasonable price. In addition, the work must be done with reasonable skill and care and done with materials of satisfactory quality.

If you employ professionals in the construction of a new house, they are also subject to the provisions of the following legislation:

• The Defective Premises Act 1972 in England and Wales
• The Defective Premises (Northern Ireland) Order 1975 in Northern Ireland

This legislation imposes duties on builders, developers, architects and other professionals involved in the design or construction of new homes in England, Wales and Northern Ireland (but not in Scotland). This does not include minor works or home improvement type works. If, at the end of the job, the home is unfit for habitation because of poor workmanship, those builders are liable to put everything right.

Most complaints about tradesmen services arise because the terms of the contract have not been fully explained. Common complaints when dealing with moderate to large projects include:

• The price charged
• The standard of work
• The time it takes to complete a job

In order to avoid problems, these items should be agreed upon beforehand and written down. The time it takes to complete the job will be more complex if it is a bigger project. If this is the case, the contract may have to set out stages that have to be finished and approved before proceeding to completion.

This may not be necessary when dealing with relatively minor refurbishment work, which consumers most frequently use. In these cases, the consumer should have a number of tradesmen provide them an estimate for doing the work. It is important to remember that estimates are only rough guides and not legally binding.

Once a particular tradesman is chosen, he/she must be asked to provide a full written quotation or an estimate. A quotation is a fixed price and cannot be changed later by either party; whilst an estimate is an educated guess on what the work might cost. You may find that the builder is more likely to give you an estimate than a quotation.

You should find out if the tradesman is going to use subcontractors to do parts of the job. If so, you should indicate that you will hold him responsible for any defects in the work of the subcontractor.

Before allowing a tradesman to start working, a contract should be drawn up, to help avoid disputes down the line.

A building contract should include at least the following terms:

• Your name and the name of the tradesman
• The technical details, plans and materials that will be used
• The date work will start
• The date work will end. A certain amount of flexibility should be allowed for external work, which might depend on the weather. However, it might be appropriate to include a penalty clause where the builder will have to pay a sum for every day's delay in completion
• The fact recorded in writing that 'time is of the essence', if it is important to you that the work is completed by a certain time
• The name of the person who has to obtain any necessary planning permission
• The name of the tradesman's insurer
• Provision for the tradesman to put right any defective work and pay for any damage to the property
• A term stating that the site will be left in a tidy state at the end of every day and at the end of the job
• If possible, a provision that part of the fee will not be paid until the work has been inspected and any defects corrected
• Provision for either you or the builder to end the contract
• The total cost of the job and how it will be paid. If the cost based on the number of hours worked, the maximum number of hours it will take

If you are presented with a contract that has already been written, you should not sign it until you have read it. If you disagree with any of the terms, you should ask the tradesman to remove them or come to an agreement about alternative terms.

Always check for unfair terms in the small print in any contract you sign. A term which is weighted in favour of the trader may be unfair. Sometimes traders try to use standard terms in their contracts to avoid responsibility if things go wrong. You are not bound by terms which are unfair.

Common types of unfair term are those which:

• Allow the trader to vary the terms of the contract, for example, by putting up the price, without giving you the right to cancel
• Stop you holding back part of the payment if the work turns out to be faulty
• Make you lose prepayments if the trader cancels the contract

You have the right to be told, in plain language, all standard contract terms before you sign the contract.

Whether you have cancellation rights depends on how you ordered the work you want done.

You have cancellation rights for some home improvements services (such as double glazing) which you buy from a door-to-door salesperson who has called at your home uninvited, or who has called at a time they arranged with you during an unsolicited phone call. You must be given a cancellation notice in writing when you agree to buy the service which sets out your right to cancel within seven days from signing the agreement. If work has already started by the time you cancel, you’ll need to pay for what’s been done. This is known as the ‘cooling off’ period.

If you buy this way, as long as there are no face-to-face meetings (not even a site visit) before you buy, you may also have cancellation rights. You must tell the trader in writing within seven working days if you want to cancel.

If you pay for home improvements work through a credit arrangement in which a contractor lends you money or arranges for you to borrow money from a creditor, you might have cancellation rights or time to change your mind. You can change your mind if you or the creditor haven't yet signed the credit agreement. Also, you will normally have a right to cancel the credit agreement if you have signed it at home, in which case, there should be a cancellation box on your copy of the agreement telling you what to do. But there are tight time limits, so act quickly. If you cancel the credit, the agreement with the trader for the work will also be cancelled. Confirm this in writing with the trader.

For big jobs, paying in stages is a good way of keeping control of the job. If the trader fails to turn up, point out that the next payment could be delayed or stopped. It is recommended that you:

• Agree in writing in advance the timing of payments
• If possible, try to negotiate an agreement in writing that you can keep back a percentage of the fee after the work is completed, to check that everything has gone well
• Don’t pay a lump sum to cover materials for the whole job, only pay for those that are needed at any particular stage. It can be better to order the goods yourself and have them delivered direct to you

Some companies offer packages for fitted kitchens, loft conversions, etc., where they sort out everything for you. Be aware that you might be paying extra for the convenience of a package.

• Query with the trader if you are asked to pay large deposits or payment in full before the work has been finished. Contact Consumer Direct in England & Wales or Consumerline in Northern Ireland if you need further advice.
• Make sure the contract includes as much information as possible.
• In case something goes wrong, make sure you know who has overall responsibility for the work, particularly if sub-contractors will be involved.

The FMB is a building trade association. The FMB gives advice on how to choose a builder and can pass on the details of its members in your area. It has a complaints procedure to deal with disputes with its members. There is also an independent arbitration service which uses the rules laid down by the Chartered Institute of Arbitrators. The FMB also has a warranty scheme called the MasterBond Warranty. The MasterBond Warranty is an insurance-backed guarantee that offers a safeguard should your builder cease trading.

Federation of Master Builders (FMB)

Gordon Fisher House

14-15 Great James Street

London

WC1N 3DP

Tel: 020 7242 7583

Fax: 020 7404 0296

To contact FMB electronically, click here and follow the on-screen prompts.

The Clients’ Advisory Service

66 Portland Place

London

W1N 4AD

Tel: 020 7580 5533

Email: info@inst.riba.org

Website: RIBA

RIBA’s Clients’ Advisory Service can send you two introductory leaflets: ‘Working with your architect’ and ‘Selection of an architect’. The RIBA bookshop is also at Portland Place. There is a mail order service from RIBA Publications, Finsbury Mission, Moreland Street, London EC1V 8BB (020 7251 0791).

A standard contract (the JCT - Joint Contracts’ Tribunal contract) is available from the shop or by post. RIBA also has regional offices with lists of local architects.

RICS

Parliament Square

London

SW1P 3AD

Tel: 0870 333 1600

Email: contactrics@rics.org

Website: RICS UK

A range of services are offered, including supplying the names and contact numbers for surveyors in your area and help with offering surveyors’ opinions in disputes. There is also a mail order service and a bookshop located at 12 Great George Street, London SW1P 3AD.