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.