Giles Dixon
If you pay a contractor to do some work on your property, you have a building contract with him. It doesn’t have to be in writing – but even for a fairly small job, it’s sensible (I’d argue essential) to at least set out the main terms on paper. Without this, it’s your word against the builder’s if disputes arise, and it can be difficult to prove your case based on verbal agreement. A fair contract will foster a good rapport, so a decent builder will want one as much as you do. Plus, having an agreed price and payment terms works in their favour as much as it does yours.
What should a contract cover?
Building a new home or tackling a renovation is a complicated process. A written contract has two main goals: to record the agreed terms; and to provide a mechanism for dealing with problems or changes should any arise. With that in mind, the key areas a good contract will cover are as follows (we’ll pull out a couple of these in more detail later):