Example Contract
HOME BUILDING WORKS CONTRACT
This is a contract between
And
Fox Conversions
82 Ward Avenue
Grays, Essex
RM17 5RN
For
Loft Conversion
At
Client Address
This Contract is only for use where the Client is a residential occupier within the meaning of S. 106 of
The Housing Grants, Construction and Regeneration Act 1996, that is where the work is to a dwelling- house or flat which one of the parties occupies or intends to occupy as his residence.
The Client and the Contractor agree as follows:-
Scope of Work
The Contractor shall carry out the Works as described in and in accordance with the following documents:-
The Contractor’s quotation dated – 21/05/17
The Price for the Works
The price for the Works as agreed between the Client and the Contractor is £38,090.
Standard of Work
The Contractor shall carry out the Works with reasonable skill and care and in accordance with the documents listed. The Contractor must only use new materials except where the Customer agrees otherwise. The Contractor shall carry out the Works using appropriately qualified and skilled workers.
The Contractor has inspected the site and agrees that his price includes for everything necessary to carry out and complete the Work.
Approvals
It is the Client’s responsibility to apply for and obtain all necessary approvals, such as planning permission, building regulation approval and listed building consent prior to commencement of the Works.
Where work is to be inspected or approved by the local Building Inspector during the progress of the Works and on Completion, the Contractor shall ensure that these inspections and approvals are carried out at the correct time. The Contractor must notify the Building Inspector at least 48 hours before commencing the Works. (not applicable in this case)
Variations
The Contractor must not carry out any Variation (which means change, omission or extra work) without first agreeing the specification and price with the Client. If the Client wishes to make a Variation to the Works, he must first ask the Contractor for a price and specification. On receipt of the price and specification, the Client must then decide whether or not to proceed with the Variation. If the Client instructs the Contractor to make a Variation to the Works without asking for and agreeing a price then the Contractor must notify the Client of the cost increase or decrease in writing via email within three days.
Health, safety and welfare
The Contractor must keep the working areas clean and tidy and must clear up and remove all rubbish at the end of each day.
The Client will allow the Contractor reasonable use of toilet facilities. The Contractor must ensure that the facilities are kept clean and tidy and any mess caused must be cleared up immediately.
The Client will provide electricity and water for the Contractor in relation to the Works. The Contractor must make his own arrangements for cleaning his tools, paint brushes, rollers, etc. and must not use the Client’s toilet facilities for this.
The Contractor must carry out the Works in a way that does not cause risk of injury or damage to the Client, his family or guests or pets.
Insurance and damage
The Client must notify the insurers of his buildings and contents that the Works are to be done. The Contractor must have appropriate “Contractors All Risks” insurance and Public Liability Insurance.
The Client must remove any delicate or fragile furniture or possessions from the working area before allowing the Contractor access. If the Contractor causes any damage or breakages he must repair the damage or pay the Client for the cost of replacement.
The Contractor must ensure that the site is kept secure and weatherproof at all times and that materials are securely stored and protected.
Time for Completion
The Contractor shall start the Works on 03/06/17 and complete the works in ten to eleven weeks. If the Client instructs a Variation to the Works, the date for Completion may be varied accordingly by agreement between the Client and the Contractor at the time the instruction is given.
The Contractor must carry out the Works between the hours of 7:30 am and 6 p.m. Monday to Friday. Work may only be carried out or deliveries made outside these times by prior agreement with the Client. The Client must allow the Contractor access to the working areas to enable the Contractor to complete the Works on time
The Contractor must carry out the Works in a logical sequence and, where possible, complete each area of the Works before commencing the next area.
On Completion the Contractor shall hand over to the Client all appropriate certificates, instruction books, receipts and guarantees for equipment supplied and/or installed as part of the Works (as varied).
Payment
The Client shall pay the Contractor the total contract sum being the agreed price for the Works referred to under Clause 2, increased or decreased by the cost of any instructed Variation under Clause 7.
On Completion of the Works, or a stage of the Works as defined below, the Contractor is to send an invoice to the Client for 95% of the amount due. The invoice must itemise the work done.
The stage payments as follows:-
Stage 1: £5700 on completion of Scaffolding (week 1)
Stage 2: £7600 on completion of Substructure (around week 3)
Stage 3: £7600 on completion of Insulation (around week 5)
Stage 4: £7600 on completion of First fix of plumbing & Electrics (around week six)
Stage 5: £5700 on completion of Dry lining (around week seven)
Stage 6: £1900 on completion of Plastering (around week eight)
Any outstanding balance shall be paid on Completion.
Each stage payment shall be payable within 3 days of receiving an invoice for that stage.
Completion means the completion of the Works stated in Paragraph 1 above together with any instructed Variations but excluding the remedying of any minor defects.
Within one month of Completion the Client may issue one list of defects which he requires the Contractor to rectify. The Contractor shall rectify those defects within three months of Completion and notify the Client that all defects have been rectified. The Client shall pay the remaining 5% of the total contract sum within 14 days of receiving the notice from the Contractor.
Consequences of failure by either side
If the Contractor fails to carry out the Works properly or fails to progress the Works at a reasonable speed, the Client may notify the Contractor in writing that, unless he corrects his failure by 4 p.m. on the seventh day following the notice, the Client intends to end the contract. If the Contractor does not correct the failure by the seventh day, the Client may then write to the Contractor ending the contract. The Client may then employ others to complete the Works. The Contractor is entitled to be paid a fair price for the Works done by him, taking into account the agreed price under Clause 2 and the cost incurred by the Client in completing the Works.
If the Client fails to allow the Contractor proper access to carry out the Works or fails to make payment of monies due on time, the Contractor may notify the Client in writing that, unless he corrects his failure by 4 p.m. on the seventh day following the notice, the Contractor intends to end the contract. If the Client does not correct the failure within by the seventh day, the Contractor may then write to the Client ending the contract. The Contractor is entitled to be paid a fair price for the work done by him, taking into account the agreed price under Clause 2
Any dispute or difference arising under or out of this contract shall be referred to as follows:
(i) In the first instance to the conciliation service offered by HomePro.com
(ii) In the second instance where conciliation fails for any reason to Adjudication in accordance with clauses 29 and 30 below.
The Adjudicator shall be appointed at the request of either the client or the contractor by the Head of Chambers at 3, Paper Buildings, Temple, London, EC4Y 7EU (currently Micheal Parroy QC) or his nominee. The party requesting the appointment shall pay a fee of £50.00 plus VAT and the appointment will be made within 7 days of receiving the request and the fee. The Adjudicator will charge a fee for his services. The Parties are jointly and severally liable for the Adjudicators fees. The Adjudicator may decide which of the parties is to pay his fees and in what proportion. Alternatively, if both the Client and the Contractor are in agreement they may appoint an Adjudicator independently. A list of Adjudicators can be acquired from the Chartered Institute of Arbitrators on 0207 837 4483 or at www.arbitrators.org/
The adjudicator shall make his decision within 28 days of receiving his appointment. The decision will be final and binding, unless either party commences proceedings in court within 28 days of receiving the decision in which case the decision is binding on the parties until the court decides otherwise. The Parties shall co-operate with the Adjudicator and shall comply with his directions and orders for the purposes of resolving the dispute. Neither the Adjudicator nor the Head of Chambers shall be liable for any acts or omissions in carrying out their respective duties, except if carried out in bad faith.
This document is the entire agreement between the Client and the Contractor. In so far as there is any conflict between any terms in the documents referred to in Clause 1 and this form, the terms of this form shall prevail. The Law of England and Wales applies to this contract.
If this contract is signed in the Clients own premises then, the Contractor will allow a seven day cooling off period before all terms herein are applied.
Name: Name:
Signed: Signed:
The Client The Contractor
Date: