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Building Work Contract

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The works contract is a contract between the customer and a service provider which is John’s Brickwork Ltd.


BRIEF SPECIFICATION


The wording in the contact is John’s Brickwork Ltd. Works Contract.  This Contract is for the project and its intent for use between the private homeowner and a builder service provider.  The building contract is between John’s Brickwork Ltd. and the client, Mr and Mrs Jones and should include the builders name and address which is Unit 10, Media Way, Rochford, Essex.  That is my address.  It would give a copy of the builder’s public liability insurance so the customer can see that we are fully insured to carry out the works, VAT number followed by the client’s address.  Obviously the name and address of where the work is to be taking place and the contract will give a description of the works to be carried out and along with that would be stapled the actual plan.  Included in the contract it says any plan, specifications or materials etc should be attached to this document.  Any plans supplied by the client will comply with all current planning and building regulations.  Any work carried out by the builder without plans will meet current planning and building regulations. 

 

This contract price is purely based on the plans supplied by the client and should the local building inspector require further works over and above the plan signed by both parties, this would be classed as extra works over and above the contract price and charged accordingly at a daily rate to be arranged plus cost of materials and necessary equipment required to carry out further works until completed.  We have priced for the plans supplied by the client and should we discover on commencement of the work some unforeseen electric, gas, water main pipes or any properties that were not mentioned or shown on the plans and would need to be removed or moved this would be classed as extra work and chargeable at the above rates.  The builder will work solely from the plan supplied by the client and its terms and contents shown have been passed by the local council. 

 

Reasonable notice of five days to change any alterations made on the plan should be agreed by both parties.  Details together with any change agreed to the costs and needs to be changed should be in writing used in the space provided in the contract.  The builder is not responsible for any plans, planning specifications, application fees or any local authority fees that might arise and obviously under that will be the agreed sum for the completed works


The estimate should include details of materials used for this contract.  JBL never takes a deposit thus giving the customer total reassurance.
The second part of the contract stipulates that time is of the essence and the work will commence on the date agreed by the contractor and the client and if delays are incurred due to bad weather, illness or acts of god strikes these are all deemed to be outside the builder’s control and extra time will be added to the contract.  Notice should be given to the client as soon as possible if delays are to be incurred.  This should be in writing and attached to this contract.  If the work is to take more than one week the payment for the building can be made in stage payments.  It says use the space below and at what stage the payments are due.  JBL will supply the invoice at each stage and completed payment will be expected from our client within 24 hours of each stage so obviously when stage one is finished, an invoice is submitted to the client and the client must pay within five working days and there can be anything up to 15 stage payments.  Should a cheque come back from the bank as unpaid then obviously fees will be incurred.


The main terms and conditions are that the builder agrees to guarantee that all the work will be to a reasonable standard that the client would expect.  He shall be responsible for any costs incurred due to faults caused by him or his sub contractors for a period of one year.   It is the builder’s responsibility to ensure that they or any sub contractors used under the appropriate insurance cover is the client’s responsibility to insure the works.  It is the responsibility of the builder to ensure that the site and works carried out on the site conform to health and safety regulations.  It is the responsibility of the builder to appropriately dispose of all waste and to leave the site in a tidy condition once work is completed.  The builder may terminate the contract if the client fails to make any payment on the time agreed to this contract the client without reasonable cause for delay on completion of work. 

 

The client will be responsible for providing access to the main services that the builder requires and ensure that the builder can access the working areas at all time.  All materials remain the property of JBL until paid for in full.  The client can terminate the contract if the work is not to a standard that a person can reasonably expect or a specification, agreement or amendments are not being adhered to and obviously both parties sign that.  In the event of either party terminating the contract for reasons described, the builder will be paid for all work and materials on the site at the time the contract is ended.  The amount owed should be determined by each stage payment.  For instance, if the builder is halfway through stage three, then approximately half of that figure of stage three will be due.  If an agreement cannot be reached as to how much is owed, the services of an independent qualified surveyor who is accepted by both parties should be sought and both parties should agree in writing and abide by his figures and both parties will meet the cost. 

 

If after completion there is a disagreement about the standard of work, a suitable qualified person can be accepted by both parties to get a third opinion, i.e. a local architect or building inspector.  The cost of the third opinion will be taken out of the retention.  This is basically a standard building contractor that would be used in this industry for projects up to £250,000.  All works carried out by the company will come with a full one year’s warranty.  As with most builds, whether it is a new build, extension or conversion, generally the customer would have a budget set aside.  It is usually advisable for all customers to allow a contingency of maybe 5%-7% because obviously during the course of the work things can be unravelled that no-one could have foreseen like hidden pipe work, electrics which can be classed as extra work and therefore be deemed as extra costs.  Most projects are completed within a period of 6-12 weeks depending on site conditions, weather and available plans. 

 

There are many different types of conversions.  You have a basement conversion, extensions, loft extensions etc which all serve different purposes.  Generally the majority of these conversions are a flat roof conversion of maybe 3 m x 5 m containing a kitchen with accommodation room and then a flat roof.  Sometimes you can have a gable roof which obviously gives you loft space but can be quite a bit more expensive to do and also you have your wrap round extension which start from the front and go down the side of the property and then round to the back.  These types of extensions are more costly.  Then you have your single storey, your double storey, followed by your roof.  Loft conversions can be quite tricky at times to be honest due to the fact of the intricacy which is involved with the amount of space you have to work with that finishes the extension.

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