How to Manage a Building Contract as a Client
Most clients sign a building contract, file it somewhere safe, and then wonder what to do with it for the rest of the project. The contract is a live management tool — not just a document for disputes. Here's how to use it actively to protect yourself and keep the project running well.
Understand What You've Signed Before Work Starts
Before the contractor starts on site, read the contract properly. The key sections to understand are: the contract sum and what it includes; the programme and key milestone dates; how changes to scope are managed — the variation process; how payment is structured — interim valuations, payment schedules, or milestone payments; what the defects liability or rectification period covers and how long it lasts; what the grounds for extension of time are; and what the termination provisions are.
If you don't understand something, ask your contractor to explain it, or ask a solicitor or construction professional to review it before you sign. A contract you don't understand doesn't protect you.
Use the Variation Process — Always
One of the most common ways building contracts break down is through informal scope changes. You ask for a small addition; the contractor does it; later there's a disagreement about whether it was included in the price or an extra. The variation process exists to prevent this. Every change to the agreed scope — no matter how small — should go through a written variation instruction, with the contractor acknowledging the scope change and the cost or time implication before the work is done.
This is not bureaucratic pedantry. It's the only way to maintain a clear record of what was agreed and what has been varied, and to avoid end-of-project disputes where the client believes the price is fixed and the contractor has a folder of verbal variation instructions.
Issue Instructions in Writing
Under most standard forms of building contract, the client issues instructions in writing. If you make a verbal request on site and it affects scope, cost, or programme, confirm it in writing as soon as possible — a quick message or email is sufficient. This creates a paper trail that protects both parties.
Manage Payments Properly
Building contracts typically have specific payment mechanisms. Read the payment schedule carefully and adhere to the agreed timelines. Late payment has specific legal consequences under the Housing Grants, Construction and Regeneration Act 1996 — and failing to pay on time can give the contractor grounds for suspension of works. Equally, don't pay ahead of the agreed schedule without understanding the risk — advance payment that isn't secured by a performance bond or retention means risk sits with you if the contractor defaults.
The Defects Period
Most building contracts include a defects liability or rectification period — typically 6 or 12 months after practical completion — during which the contractor remains obligated to return and fix any defects that emerge. Make a note of when this period ends, and make sure any defects are reported and addressed before it expires. After the defects period, the contractor's obligation to make good at their own cost reduces significantly.
RCB issues clear, plain-English contract documents on every project — explaining the key terms before signing and managing the project in accordance with the agreed contract throughout delivery.
07359 872594 | contact@rcbgroup.co.uk | www.rcbgroup.co.uk