Building
Contracts.

Are they a necessary evil or are
they best avoided?
BUILDING
CONTRACTS
The client essentially has two
choices in the manner in which the builder is
engaged:-
1. By exchange of
letters.
2. Use of a standard form of
Building Contract.
For most extensions,
builders seem to be engaged by an exchange of letters giving
reference to the drawings and specification. The letters will
also include for:-
a. The contract
price.
b. Method and interval of
payments.
c. Start date and contract
duration.
d. Schedule of deviations
from the drawings/specification (if any).
e. Liquidated damages (if
required).
A standard building contract
like the JCT Small works for example is available and cover in
detail most contractual obligations. However, they are fairly
complicated for the novice and usually require a Contract
Administrator to act on the clients behalf although this is not
essential. JCT have now devised a simpler building
contract aimed at the 'home owner/occupier' which is meant to
be written in plain English with tick boxes. It costs
around £10.00 and is available from most High Street bookshops
and Stationers.
CHP's clients do not usually
employ CHP to act as formal Contract Administrator for reasons
of cost savings. Should the client require this service then a
fee can be quoted upon request.
However, CHP is usually
available to the client during the construction process to
resolve any specific queries from either the client or their
builder on an 'as and when basis'.
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