Many disputes involving residential building projects arise because of a failure to put in place a formal written contract before work begins and because the parties fail to agree on certain essential things, such as what work must be carried out. If these things are agreed at the beginning then the potential for disputes is dramatically reduced.

Preparing a contract may sound like a daunting prospect, but it is, in fact, extremely straightforward because there are standard documents available for home owners to use. All that is required is to add details of the particular project.

These standard documents are drafted by the Joint Contracts Tribunal, commonly called the JCT. The JCT has been producing standard form building contracts for over 75 years which are used within the commercial construction industry. Most commercial buildings, such as offices and shopping centres, are built using JCT contracts.

The JCT publishes two contracts for homeowners carrying out small residential building projects such as extensions or refurbishments, which are a building contract and an appointment for a consultant to oversee the building work. There are two versions of the building contract, one to be used where a consultant has been appointed to oversee the work, and one where the homeowner will oversee the work.

The contracts are drafted in clear, simple language and come with guidance notes. They are very easy to use. They cost approximately £15 each or £19 for both, including VAT.

The contracts can be obtained from RIBA bookshops (www.ribabookshops.com) and Construction Industry Publications (www.cip-books.com).

The building contract sets out:

  • The parties' names and addresses.
  • The arrangements for the work.
  • A mechanism for describing the works.
  • Who will apply for planning permission, building regulation approval and party wall consents.
  • The price.
  • Payment arrangements.
  • The length of time the work will take.
  • Insurance arrangements.
  • Working hours and facilities which the contractor can use.
  • The contractor's responsibilities.
  • The customer's responsibilities.
  • Both parties' health and safety obligations.
  • How changes to the works are to be dealt with.
  • What happens if the works are delayed.
  • How the contract can be brought to an end.
  • How disputes are to be resolved.

The architect's appointment sets out:

  • The parties' names and addresses.
  • The services the consultant will provide, in stages, before and after building work starts.
  • Fee and payment arrangements.
  • Insurance arrangements.
  • How disputes are to be dealt with.
  • The consultant's responsibilities.
  • The customer's responsibilities.
  • How changes to the services are to be dealt with.
  • Who owns the copyright in documents prepared by the consultant.
  • How the appointment can be brought to an end.
  • How disputes are to be resolved.

The contracts also assist by acting as a checklist for essential items in a building contract. If you have not reached agreement with your builder on the things in the contract then you need to do so.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.