A contract for every job - why you need one

When you agree to do a job for a customer it’s imperative that all the details, including the cost is written in a contract.

But to most busy builders like yourself, writing up a Contract is often regarded as being a bit of a chore. However, with consumer organisations encouraging home owners to be wary of any builder who is unwilling to enter into a contract, those that are prepared to present a document to their customer will stand a greater chance of winning the work and also protect themselves against any possible dispute.

The law assumes that when a building contract is agreed by two parties, there is an intention to create legal relationship whether verbally, in writing, or both, unless one of the parties is incompetent (drunk, a minor, mentally ill or suffering a senile age related illness).

As long as the builder and the second party are both competent, the contract is legally binding and provides an important reference point should a misunderstanding occur, plus framework under which a resolution can be found.

Contracts protect both parties

For those who have had a customer who wouldn’t pay for the building work, or have had a customer make changes during a job and then refuse to pay the extra costs, a signed contract goes a long way to resolving any dispute. And in the current climate, when people are taking longer to pay (or in some cases refusing), having a contract or payment schedule is vital.

The FMB believes that disputes occur because of a simple lack of understanding as to what was agreed in the original quotation. So by providing a clear definition of the work to be done in a Plain English Building Contract before they start, builders can avoid misunderstandings on site. They can then work a job safe in the knowledge that no-one is in doubt about the work covered, its value, obligations, payment timings, defects, warranties, dispute resolution and more.

Software solutions

Fortunately, builders who still don’t enter into a formal contract using the excuse that it takes too long or have ‘got by in the past’ can take advantage of a software programme that does all the work for them. Called ContractsXpert, the software developed by HBXL in collaboration with the FMB will make sure builders - and customers - know exactly where they stand legally.

Builderbusiness Members save £100 on ContractsXpert (RRP £499 ex VAT including Support & Updates). Find out more…or call 0845 1234 065 and don’t forget to mention Builderbusiness

Getting started

Once the software is installed, the first thing to do is to create a new contract with three simple options to choose from. These include creating a new contract, importing project details from EstimatorXpress if you are a user or copying and amending an existing contract.

To make things easy, the software has four basic FMB contract types which the user chooses by using the onscreen wizards. These include:

• Plain English Domestic Building Contract for Minor Building Work (up to £50K)
• Plain English Domestic Building Contract (Scotland) for Minor Building Work (up to £250K)
• Plain English Domestic Building Contract (up to £500K)
• Plain English Commercial & Industrial Building Contract (up to £500K)

Once selected, you then enter the project details into the specified fields, answering a few simple questions. Then, once all details have been inputted, you review and print the contract. It may be more than one page - but each page is easy to follow. It may seem that for such an important document, the process is far too simple, but what HBXL has done in conjunction with the FMB is provide the legal basis for safe-guarding the builder.

Wizard!

When you follow the guidance notes (which also explain the legal terminology) to create a contract, you really begin to see what you get with this package. It only takes a couple of minutes to defi ne the job specifi cation and produce the contract using the wizards. The wizards also enable the user to enter data into the engine of the application and break the process down into easy logical steps. They also provide good visuals, making data entry easy and logical.

Practicality

With ContractsXpert, the learning curve is very short. It means users can produce contracts very quickly spent sorting out the paperwork.It therefore frees up the builder to concentrate on the job in hand, safe in the knowledge that they are covered by a legitimate contract.

ContractsXpert can be used in conjunction with HBXL’s EstimatorXpress or as a stand alone piece of software. Any builder looking to protect themselves with a formal contract will be able to use this new software and make sure all parties know where they stand, outlining a clear defi nition of what work is to be undertaken, how much it will cost and key dates.

The FMB has produced an excellent set of template building contracts which HBXL has transformed into electronic versions, combining HBXL’s software expertise and the FMB’s legal knowledge. It’s fast and reassuringly backed by the fact that the contracts it produces are based on FMB Plain English contracts. Builders should therefore be far more confident in producing contracts when they quote for some work.

Builderbusiness Members save £100 on ContractsXpert (RRP £499 ex VAT including Support & Updates). Find out more…or call 0845 1234 065 and don’t forget to mention Builderbusiness