Contracts with tradespeople: Always get your job in writing

This guide is here to explain about contracts. Remembering these simple steps could help protect you, your home, and hard-earned savings.

What is a contract?

A contract is a written agreement. It covers everything you think you are paying for, when the work will be done, and when you will be paying. It’s important to not assume things are included if they are not listed.

For smaller jobs, the written agreement will mostly likely be a quote, and for larger jobs, a formal contract will probably be put in place. These documents act as a contractual agreement between you and the tradesperson. 

You may find yourself in a position where you’re unable to get a formal written agreement. As a backstop make sure you capture the job in writing; whether that be in a text, WhatsApp or email. Make sure it evidences what work is being done and not being done, the cost, and the timeline.

Why having a contract in place is a good thing

Having a contract in place is there to look after and protect you.

A contract helps with:  

1. Removing unclear expectations

A written contract serves as a blueprint for your project; outlining all the details, expectations, responsibilities, and requirements agreed by both you and the tradesperson.

A lack of clarity over the project scope, timeline, materials, and deliverables can lead to misunderstandings, disputes, and dissatisfaction with the final outcome.

It’s challenging to hold a contractor accountable for delivering the desired outcomes without a detailed contract in place that’s signed by both parties.

2. Payment issues

A signed contract protects you financially by outlining a fair and transparent agreement over the project payment terms.

Without this, you could face unexpected charges and inflated invoices, which are difficult to resolve without a written agreement.

3. Delays and missed deadlines

A detailed contract will specify the project timeline, key parts of the project, and a mutually agreed completion date.

Without a signed agreement, you could face delays, missed deadlines, and frustration from a lack of accountability.

4. Dispute resolution

Your contract will include a reference point for handling any disputes that emerge between you and your contractor during the project.

Without a signed agreement outlining potential dispute resolution, should you have a dispute during the project, it may be left unresolved.

5. Legal protection

A signed contract provides legal protection for you and your contractor, making sure that all parties are aware of their rights, responsibilities, and liabilities.

This provides you with peace of mind throughout the project, knowing you have protection should something go wrong.

What should a contract cover for smaller jobs?

This will probably be a quote and may have a written scope of work details. It should be clear, concise, and written in a plain language that everyone understands.

The three key to things to cover are:

1. A description of the job and what is being done (and what is not being done)
2. Timings of what work will be done when
3. Payment schedule detailing what will be paid and when

Top tips

• When reviewing the description of the job, be clear on your expectations. For example, imagine you’re having a new fireplace installed. You may assume that the tradesperson will dispose of the old one and remove all rubble and brick from your property. However, if this isn’t actually agreed, then the waste is your responsibility
• Plan ahead for material deliveries. For example, your kitchen may need to arrive on a certain date. Being clear on timing will help the job run smoothly
• Know what you’re paying for and when. Take a look at our guide to deposits for more information

What should a contract cover for bigger jobs?

For bigger jobs, like an extension, a contract is a must. There are two industry standard homebuilding contracts that you can use as a guide:

• RIBA domestic building contract – This is endorsed and supported by the HomeOwners Alliance and is an agreement between you (the client) and a contractor. You can buy a copy of this to use for £35 – £45
• JCT Building contract for a homeowner/occupier who has not appointed a consultant to oversee the work – This contract is for a homeowner dealing directly with a contractor. You can buy a copy for £32

Contracts vary from job to job, so we’ve pulled together some of the important things to know:

1. Outline all the parties involved

• Names – your full name and your contractor’s full name/company name
• Addresses for both parties
• Company registration details (if applicable) for your chosen tradesperson

Top tip: Ask the tradesperson to identify any subcontractors or additional parties involved in the project.      

2. Scope of the work

Include a detailed description specifying:

• What work will be carried out prior to payment
• What the builder/tradesperson will not be doing
• What materials are going to be used and whether this cost is included in the final price
• Your expectation to be consulted in any decision making moments, such as choosing a certain quality of product
• What will happen if an unforeseen event impacts the scope of work. For example, discovering structural issues during the project that need repairs, or bad weather delaying the project
• Include a ‘quality sign off’ provision, which states that final payment will be made on completed of works to an acceptable standard

3. Project timeline

Specify the start date and the expected completion date of the project.

It is also recommended to include project milestones or key deliverables to monitor the progress throughout.

By ‘deliverables’, this could mean, for example, a roof being fitted on an extension. By having payment conditions for key parts of the project it can help keep the payments in order.

4. Payment terms

One of the most common disputes between contractors and homeowners is money.

The golden rule is to never to pay your deposit in cash. Cash payments are untraceable, which means you have no evidence of that payment being made.

The contract should include specifics about payment. Clearly outline:   

• The total agreed project cost, including VAT
• The payment schedules
• Details of any specific conditions or milestones that will trigger payment
• The acceptable methods of payment
• How changes to the project scope or timeline may impact cost and payment terms

If you want to find out more about deposits, take a look at our guide to deposits.

5. Planning, permits, and building regs approval

The contract should outline what permissions, permits, and building regulations approvals are needed and who is responsible for obtaining these.

Any associated costs involved with obtaining these should be clearly outlined in the contract too.

6. Guarantees, warranties, and insurance

Your contractor should include reference to any guarantees on their work and any warranties on the materials used or equipment installed.

This should also outline the duration of guarantees/warranties and any conditions or limitations.

Proof of your contractor’s insurance must be included. Valid and adequate public liability insurance is the main cover to check for. This will protect you if your contractor causes any damage or injuries during the project.

Professional indemnity insurance is also a good one to check for, this insurance means you could be compensated if work is inadequate.

It’s also worth checking if your tradesperson is part of a trade association or trade body that offers a guarantee. Take a look at our trade association partners.

As part of our rigorous checks, every Checkatrade member must have public liability insurance to be listed in our leading directory.

You’ll only find trades who meet our high standards and pass our quality checks on Checkatrade.

7. Change orders and cancellation

A ‘change order’ is an additional mutual agreement to change the work, schedule, price, or other term within the contract.

For example, you may be having a single storey extension built, and during the works, you decide you’d like to have a sky lantern installed in the roof. A ‘change order’ will detail how you go about making this change.

The contract should outline how changes to the original scope of work will be handled. Including:

• How change orders should be requested and approved
• A provision for the impact this will have on project timelines, costs, and payments

Often, this is just outlined in an email with costs and both parties can confirm by replying via email, but make sure you do capture agreement on changes in writing.  

8. Dispute resolution

Include a section that outlines the process for resolving disputes. For example, you could include mediation or arbitration rather than resorting to legal action.

This can help to save time and money and help to preserve the relationship between you and your contractor.

9. Sign it!

Finally, the contract should be signed and dated by both you and your contractor to bind the agreement.

If other parties are going to be involved in the project (e.g. subcontractors) they will also need to sign too.

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Disclaimer 
This information is for guidance purposes only and does not amount to financial or legal advice or recommendation. The content and materials featured or linked to on this blog are for your information and education only and are not intended to address your particular personal requirements. The information does not constitute financial advice or recommendation and should not be considered as such. The Checkatrade website is not regulated by the Financial Conduct Authority (FCA), its authors are not financial advisors, and it is therefore not authorised to offer financial advice. Always do your own research and seek independent financial advice when required. Any arrangement made between you and any third party named or linked to from the site is at your sole risk and responsibility. Checkatrade blog and its associated writers assume no liability for your actions.