Building contract template
A building contract is the written agreement between a client and a builder for building work, setting out the work, the price, the dates, how and when the builder is paid and what happens if something goes wrong. It is signed before work starts, for a homeowner's extension or refit or for small commercial works. The parties, the site, the scope, the stage payments and the dates are different for every job.
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What changes each time
33 values. Everything else is your wording, kept exactly.
The parties and the site
- Contract date
- Client's name and address
- Contractor's name or company and address
- Site address
- Short description of the works
- Documents forming part of the contract
- Domestic or commercial contract
Price
- Contract price
- VAT treatment
- Provisional sums
- Stage payments: stage, work completed, amount and when due
- Deposit percentage (domestic)
Dates and delay
- Start date
- Completion date
- Late completion amount per day or week and maximum (commercial)
- Working hours for site access
Responsibilities and insurance
- Building control: contractor obtains it, or the client's reference
- Facilities the client provides
- Planning, party wall and consents the client obtains
- Public liability cover
- Employer's liability cover
- Who insures the works
Payment terms
- Days to pay each invoice (domestic)
- Final date for payment and pay less notice period (commercial)
- Retention percentage
- Interest rate on late payment (domestic)
Completion, ending and disputes
- Defects period
- Days to remedy a breach before termination
- Liability limit (commercial)
- Mediation body or independent expert
- Adjudicator nominating body (commercial)
- Cancellation contact details (off-premises)
- Scope of works schedule: item, description, included in price
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“State the contract as domestic or commercial.”
A domestic contract gets the consumer wording, a deposit limit and the cancellation information where it applies. A commercial one gets the construction payment notices and adjudication.
- One of several wordings
“State the price as plus VAT, including VAT, or not VAT registered.”
Only the chosen VAT sentence appears.
- One of several wordings
“Say either that the contractor obtains building control approval, or that it works with the client's approval.”
The approval reference is written in only on the second form.
- One of several wordings
“Say either that the client insures the existing building, or that the contractor insures the works until practical completion.”
Only the chosen sentence appears.
- One of several wordings
“Set the late payment interest as the commercial statutory interest, or a rate above base rate for a domestic contract.”
A domestic contract carries the agreed rate, and a commercial contract refers to the Late Payment of Commercial Debts (Interest) Act 1998.
- One of several wordings
“Limit liability to the contract price or to a stated amount (commercial).”
Only the chosen cap appears in the liability clause.
- Only when…
“Include late completion damages only for commercial works where agreed.”
The amount per day or week and the maximum are written in.
- Only when…
“Include the deposit limit only for a domestic contract.”
The deposit is stated as a percentage of the price, used for materials for the works.
- Only when…
“Include the construction payment clause only for a commercial contract.”
It sets the due date, the payment notice, the final date for payment, the pay less notice and the right to suspend.
- Only when…
“Include retention only when retention is held.”
The percentage is written in, with half released at practical completion.
- Only when…
“Include the right to cancel and the model cancellation form only for a domestic contract made away from the contractor's premises, by phone or online, and not for a new home.”
The cancellation clause, the request to start within the cancellation period and Schedule 2 appear.
- Only when…
“Include the employer's liability insurance line only when the contractor employs anyone.”
The cover amount is written in.
- Once for each item
“One row for each payment stage and one row for each item of the scope of works.”
A four-stage payment plan has four rows in the stage payment table, adding up to the contract price.
Questions people ask
Do I need a written contract for building work?
The law does not usually require a building contract to be in writing, but a written one records what was agreed on price, scope and dates, which helps if there is a disagreement later.
What should a building contract include?
The parties, the site and the work, the price and how it is paid, the start and completion dates, how changes are agreed, insurance, how defects are put right and how the contract can end.
Can a homeowner cancel a building contract?
If the contract is made at the home, by phone or online, a consumer usually has 14 days to cancel. There is no such right for building a new home. The cancellation information in the contract explains this.
Is a deposit allowed?
Yes. In a domestic contract the deposit is usually kept to a modest part of the price and used for the materials ordered for the works.
What is a stage payment?
A payment due when a stage of the work is complete, such as foundations signed off or the roof watertight, rather than one payment at the end.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.