Self build with main contractor - What type of contract to use.

[Jasewes]

Hello. We are just about to go into contract with our builder and I would appreciate any advice on what type of contract to use and to what level of detail. Our builder has proposed that we use their standard contract which I am wary of. Our self build mortgage provider recommends using a JCT contract which I have been looking at but it's not clear exactly what details and level of detail to incorporate into the contract. We have costings from the builder but they are not detail to the point of which ASH pump will be used, what bricks are to be used, wood cladding material and style of installation..etc etc.. Can anyone help shed some light on what seems to be a minefield. 

[nod]

Regardless of which contract you use 

You must have detailed costings 

Or at least a figure for each item 

 

[Nickfromwales]

5 hours ago, Jasewes said:

Hello. We are just about to go into contract with our builder and I would appreciate any advice on what type of contract to use and to what level of detail. Our builder has proposed that we use their standard contract which I am wary of. Our self build mortgage provider recommends using a JCT contract which I have been looking at but it's not clear exactly what details and level of detail to incorporate into the contract. We have costings from the builder but they are not detail to the point of which ASH pump will be used, what bricks are to be used, wood cladding material and style of installation..etc etc.. Can anyone help shed some light on what seems to be a minefield. 

The level of ambiguity in such a 'contract' makes it as worthwhile as if it were Andrex..... just "NO".

 

You need line by line, a name or type of product with at the worst a PC sum for it, and from there you need to be privy to options before the orders placed.

 

For one example, the builder will have asked his plumber for ASHP (etc) costs, so ask to see the breakdown of that; explain you do not need to see their costs to the builder as we both know there will be a minimum of 10-20% applied by the builder as the coordinator / contractor, possibly as much as 30% if it is a small project, but that you just want to see the detailed breakdown of what equipment you will get, simples. This prevents you paying Vaillant / Mitsubishi prices and then getting some Chinese shit-box installed that won't last 5 years.

 

You need to sit this chap down, make him a brew, and state your case. He will a) agree and buck up his ideas, or b) smile and nod, and you'll never hear from him again. Best to find this out the easy and cheap way, right now.

[Nickfromwales]

I still get amazed that a self build mortgage company would not ask for a full Bill Of Quantities for this level of lending, given how costs always seem to spiral with zero leverage in the clients corner. 

 

Ironically the BOQ serves to protect me more than the client, as when a client says "I was supposed to have oak skirting", I can just point at the detailed contract and say "not on this you didn't" and the argument is over before it begins. Such blissful simplicity, but you would have to shoulder the cost of the BOQ being produced, not the builder.

 

Essentially the BOQ would go on to be the backbone of the contract.

[JohnMo]

6 hours ago, Jasewes said:

We have costings from the builder but they are not detail to the point of which ASH pump will be used, what bricks are to be used, wood cladding material and style of installation..etc etc..

These should all be detailed on your drawings, otherwise you have no idea what you are going to get.  Not even sure why you have planning without this level of detail?

 

If this level of detail is not being used to quote against, then everything will be a variation and you best have a huge contingency fund.

 

Stop the process get proper drawings of what YOU want. More details you put on the drawing, the less stress you will have and the less wiggle room for being wrapped off.

[ETC]

You need to look into the NEC suite of contracts. The JCT contracts are a bit ambiguous and you would need to appoint a contract administrator and your drawings and specifications would need to be complete before you enter into the contract. With some JCT Contracts you will need at the very least a schedule of works and at best a full Bill of Quantities.

 

Essentially the NEC contract will list everything and this is where you need to get your agent to identify everything from architraves materials and finishes to door handles and to list them in the contract to be priced. This means if you remove this item the cost will be removed.

 

Stay away from Prime Cost or Provisional Sums - they’re just figures builders put into cost breakdowns to cover unknowns.

 

If it was me I would look into hiring a good QS to cost the job, prepare a contract, to tender works packages and to keep an eye on costs during the build.

[Jasewes]

HI all.. thanks very much for the great advice. I will take this onboard as we progress the project. Our mortgage provider has requested a schedule of works be provided by our builder. Can anyone provide me with an example of a schedule of works to enable us to see what to expect.. Thanks Jase