A to Key - The Construction Process for Homeowners Part 3 - Construction.

The drawings are complete, the building contract signed, and your builder is starting work next week. You’ve reached RIBA Work Stage 05 (Manufacturing and construction).

This is when things will start to get scary, as depending on the scope of the works the builder will start demolition works/ site clearance; the ‘breaking the eggs phase’ of the job. This can be very overwhelming for clients as a lot of dust, mess and noise is created very quickly. A useful way to help minimise the mess is to agree with your builder which areas are to be kept ‘outside the working zone’ and seal them off to ensure no dust or building materials creep into the area you use on evenings and weekends. 

If you have appointed a project manager or your Architect to oversee the site works, they will usually conduct one or two site visits a month to ensure the contractor is building to the agreed design, handle any questions the builder may have, and check that the works the builder is charging you for have actually been completed. 

In addition to the project management side of the site works, building control inspections will begin to occur to ensure that works have been completed to the correct British Standards and are safe (See Part 2 of this blog for more information on building control). Your builder will know at which stages these building control inspections need to take place, and will arrange them as and when appropriate. As the site works draw to a close, the building control inspector will sign the building off under a ‘Final Certificate’. This is a vital document as it confirms that works have been executed to the legally required British standards, by a competent construction company. If you ever chose to sell the property, this certificate will be requested by the buyers solicitor and you may find yourself in a tricky position if you cannot produce it.

Paying your builder

The method of payment should be agreed before the project starts. The two main payment methods are; milestone payments and monthly payments. On smaller residential projects milestone payments are the best way to proceed. This is because there is a clear indicator that works have been completed, they can be verified, and a payment can be made. Examples of stages for milestone payments are as follows: completion of excavation works for foundations, completion of brick and block work, completion of painting works etc.

Monthly payments are often divided into equal parts of the total job costs, these can be much more complicated as the schedule of works will have to be closely monitored and your builder will need a large line of credit, thus it is usually not appropriate for small scale domestic construction. Further complications can arise if construction works start falling behind, the client can feel aggrieved and disputes can arise.

Depending on your building contract, you may have agreed to retain a percentage of the payment until the job is complete. Often set at 5% of the total amount due, this retained figure is paid into a holding account, to ensure that the builder completes all works to a satisfactory standard before leaving the job.

The importance of a Building Contract

The contract will set out the price of the building works, the scope of the building works, when payments are to be made, and the % of retention, if any. Contracts are designed to protect both parties, particularly in the event that building works do not go to plan.

For example, during construction your builder may encounter issues such as extreme weather events which delay works. The contract will set out how extra costs that may be associated with this are aportioned. You as the client, may wish to upgrade the windows you wish to install. This is again a change to the contract and so the associated costs need to be re-agreed by both parties. You may want to make changes to wall locations which may not incur additional cost, but will need to be formally agreed and recorded in writing, to become an officially recognised and agreed deviation to the contract. Where disputes occur, your contract will have already set out the legal method to resolve them. Put simply, your contract sets out what both parties are agreeing to before starting works on site, and therefore ensures that both parties are held legally accountable to each other, and are protected.

RIBA Workstage 6 & 7 (Handover and Use)

A building project culminating in a dispute is a worst case scenario. If you have a good Architect, a reputable builder, and go into the project with a positive attitude, they should not be required. All you should be left with is an exciting new space for you and your family to enjoy. You will be formally handed back ownership of your home, and the builder will return all keys and provide you with all relevant certificates.

Hopefully this series has been useful, if you have question please do not hesitate to contact us.