Free Building Contract Template

THE WORKS

The Contractor shall carry out and complete the following construction operations (the "Works"), which the parties confirm fall within section 105 of the Housing Grants, Construction and Regeneration Act 1996:

Description of Works:
Single-storey rear kitchen extension: reinforced concrete strip foundations, 300mm cavity blockwork to DPC, traditional brick and block thereafter, 7m CELSA steel with Catnic lintels, warm flat roof with EPDM membrane (15-year manufacturer warranty), 3m aluminium bi-fold doors (Origin OB49), rewire and consumer unit upgrade to BS 7671:2018 +A2:2022, first-fix plumbing and underfloor heating, plastering and two-coat decoration throughout.

Site Address:
14 Beech Lane Cardiff CF10 2AB

The Works shall be carried out in accordance with any drawings, specifications and schedules agreed in writing between the parties. Where no specification is provided for a matter, the Works shall comply with good industry practice, current British Standards, the Building Regulations 2010 and any other statutory requirements applicable at the Site.

PROGRAMME AND EXTENSION OF TIME

Commencement: The Works shall commence on or about 1 May 2026.
Completion: The Contractor shall achieve practical completion of the Works on or about 15 July 2026.

The Completion Date may be extended by written agreement between the parties where completion is or is likely to be delayed for reasons beyond the Contractor's reasonable control, including (without limitation) exceptionally adverse weather, force majeure, variations instructed by the Client, delay by the Client or its other contractors, or any matter amounting to prevention by the Client. The Contractor shall notify the Client in writing of any circumstance likely to cause delay as soon as reasonably practicable after it becomes apparent, together with the anticipated length of delay and any mitigation proposed.

CONTRACT PRICE AND PAYMENT

The Client shall pay the Contractor the sum of 28,000.00 GBP (exclusive of VAT, with VAT chargeable in addition at the prevailing rate) for carrying out and completing the Works (the "Contract Price").

Payment Stages:
(a) Deposit / first stage: 20% (approx. 5,600 GBP), payable on execution of this Contract and before commencement of the Works;
(b) Interim stage: 50% (approx. 14,000 GBP), payable on the written certification of the agreed interim milestone;
(c) Final stage: 30% (approx. 8,400 GBP), payable on the issue of the practical completion certificate (subject to any retention under Clause 7).

Payment Notices (s.110A HGCRA): Not later than five days after the due date, the Client shall give notice specifying the sum considered due and the basis of calculation. If no such notice is given, the sum notified in the Contractor's application shall become the notified sum.

Final Date for Payment (s.110 HGCRA): The final date for payment of each notified sum is 14 days after the due date.

Pay-Less Notice (s.111 HGCRA): If the Client intends to pay less than the notified sum, the Client must give a written pay-less notice not later than 5 days before the final date for payment, specifying the sum the Client considers to be due and the basis of calculation. In the absence of a compliant pay-less notice, the Client shall pay the notified sum in full.

Suspension for non-payment (s.112 HGCRA): If any notified sum is not paid in full by the final date for payment and no valid pay-less notice has been served, the Contractor may, on seven days' written notice, suspend performance of any or all of its obligations under this Contract until payment is made. The Contractor shall be entitled to an extension of time and to reasonable costs and expenses incurred as a result of the suspension (s.112(3A) HGCRA).

Pay-when-paid prohibited (s.113 HGCRA): Any provision in this Contract making payment conditional on the Client or Contractor receiving payment from a third party is ineffective, except where that third party is insolvent as defined in s.113(2)-(4).

CONTRACTOR'S OBLIGATIONS

The Contractor shall: (a) carry out the Works with reasonable care and skill in a good and workmanlike manner, as required by section 13 of the Supply of Goods and Services Act 1982 and section 49 of the Consumer Rights Act 2015; (b) supply materials that are of satisfactory quality and reasonably fit for purpose as required by sections 9 and 10 of the Consumer Rights Act 2015, being new materials conforming to the relevant British Standards and the specification annexed to this Contract; (c) comply with the Building Regulations 2010, the Health and Safety at Work etc Act 1974, the Construction (Design and Management) Regulations 2015 and all other applicable statutory requirements, and obtain any building control sign-off or completion certificate required for the Works; (d) not subcontract the whole or any substantial part of the Works without the Client's prior written consent (such consent not to be unreasonably withheld); (e) keep the Site clean, safe and secure so far as reasonably practicable, and remove all debris, surplus materials and plant on completion; and (f) in respect of any dwelling, perform its obligations in such a manner that the work will be fit for habitation when completed, in accordance with section 1 of the Defective Premises Act 1972. The parties note that the limitation period for claims under that Act is 15 years (Building Safety Act 2022 s.135) and 30 years in respect of accrued claims immediately before 28 June 2022.

CLIENT'S OBLIGATIONS

The Client shall: (a) provide the Contractor with unobstructed access to the Site at the times agreed between the parties; (b) make payments in accordance with Clause 3; (c) not interfere with or obstruct the Contractor in the performance of the Works; (d) give reasonable prior notice of any instruction or variation relating to the Works; and (e) discharge any obligations imposed on the Client by the Construction (Design and Management) Regulations 2015 (including, where applicable, the appointment of a Principal Designer and Principal Contractor, and the provision of pre-construction information). Where the Client is a residential occupier within the meaning of section 106 HGCRA 1996, the parties note that those obligations may be discharged by the Contractor acting as both Principal Designer and Principal Contractor under CDM 2015 regulation 7(1).

VARIATIONS

The Client may instruct variations to the Works by written instruction ("Variation Instruction"). Within 5 working days of receipt, the Contractor shall provide a written quotation setting out (a) the nature of the varied work, (b) the effect on the Contract Price, (c) the effect on the Completion Date, and (d) any consequential effect on programme or sequence. The varied work shall only be carried out once the quotation has been accepted in writing by the Client (the "Variation Order"). All Variation Orders shall be signed by or on behalf of both parties and recorded in the variation register maintained by the Contractor. Nothing in this clause prevents the parties from agreeing a fixed price for future variations of a minor nature.

RETENTION

The Client shall be entitled to retain 5% of the value of each payment certified under this Contract (the "Retention"). Half of the Retention shall be released on the date the Contract Administrator certifies practical completion of the Works. The remaining half shall be released within 14 days of the expiry of the rectification period (defects liability period) specified in Clause 9, subject to the satisfactory making good of any defects notified during that period. Retention shall be held in trust for the Contractor on a segregated basis where the Client is a commercial employer; in any event, the release of Retention shall not be unreasonably withheld or delayed.

HEALTH AND SAFETY — CDM AND BUILDING SAFETY ACT

The Client is a domestic client within CDM 2015 regulation 7. The Contractor (or if more than one, the principal contractor appointed under regulation 5) shall discharge the Client's CDM duties, including preparing and providing the health and safety file.

The Contractor shall comply with the Health and Safety at Work etc Act 1974, the Management of Health and Safety at Work Regulations 1999, the Work at Height Regulations 2005, the Control of Substances Hazardous to Health Regulations 2002 and all other relevant statutory provisions. The Contractor shall produce evidence of its compliance (including risk assessments, method statements, safe systems of work and F10 notification where required) on request.

DEFECTS RECTIFICATION PERIOD

The Contractor shall at its own cost make good any defects, shrinkages or other faults in the Works which appear within 12 months of the date of practical completion (the "Rectification Period") and which are due to materials or workmanship not in accordance with this Contract. The Client shall notify any defects in writing within a reasonable time of discovery. Nothing in this clause limits the Client's rights under the Defective Premises Act 1972 (where applicable), the Limitation Act 1980 (six years for simple contract, twelve years for contracts executed as a deed) or the Consumer Rights Act 2015 (where the Client is a consumer).

TERMINATION FOR DEFAULT

Either party may terminate this Contract by written notice where the other party: (a) commits a material breach of this Contract which it fails to remedy within 14 days of written notice requiring remedy; or (b) becomes insolvent (as defined in section 113(2)-(4) of HGCRA 1996). On termination by the Client for the Contractor's default, the Client may engage others to complete the Works and shall be entitled to recover from the Contractor any reasonable additional costs so incurred. On termination by the Contractor for the Client's default (including non-payment), the Contractor shall be entitled to payment for all Works properly executed up to the date of termination, together with reasonable loss and expense (but excluding loss of profit on uncommenced Works unless expressly agreed). Insolvency of either party shall not of itself prevent a referral to adjudication, which right survives termination (see Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25).

INSURANCE

The Contractor shall, before commencement of the Works and throughout the Rectification Period, maintain with reputable UK insurers: (a) public liability insurance with a limit of indemnity of not less than 2,000,000 GBP for any one occurrence (with the aggregate unlimited); (b) employers' liability insurance in accordance with the Employers' Liability (Compulsory Insurance) Act 1969, with a limit of not less than 10,000,000 GBP per claim (minimum £5 million by law); and (d) such contract works, all-risks and other insurance as may be required by the Works or by statute. The Contractor shall produce certified evidence of cover on request.

DISPUTE RESOLUTION

Without prejudice to the statutory right of either party to refer a dispute to adjudication at any time, any dispute arising out of or in connection with this Contract shall be resolved by adjudication at any time under section 108 of the Housing Grants, Construction and Regeneration Act 1996 (as amended by the Local Democracy, Economic Development and Construction Act 2009), with the procedure of the Scheme for Construction Contracts (England and Wales) Regulations 1998 (SI 1998/649, as amended by SI 2011/2333) applying where this Contract does not contain compliant provisions. The adjudicator's decision shall be binding on the parties on an interim basis under section 108(3) HGCRA 1996 until the dispute is finally determined by legal proceedings, arbitration or agreement. Notices of dispute shall be served in accordance with section 115 HGCRA.

GOVERNING LAW AND JURISDICTION

This Contract and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it shall be governed by and construed in accordance with the law of England and Wales. Subject to the right of either party to refer any dispute to adjudication at any time, the parties submit to the exclusive jurisdiction of the Technology and Construction Court (part of the Business and Property Courts of England and Wales).

GENERAL

(a) Entire Agreement: This Contract (together with any documents expressly incorporated by reference) constitutes the entire agreement between the parties and supersedes all prior discussions and correspondence. Each party acknowledges that in entering into this Contract it has not relied on any statement or representation not expressly set out in this Contract (section 3 of the Misrepresentation Act 1967 notwithstanding, nothing in this clause limits liability for fraudulent misrepresentation).
(b) Amendments: No amendment to this Contract is effective unless made in writing and signed by or on behalf of both parties.
(c) Severability: If any provision is held to be unenforceable, the remaining provisions shall continue in full force.
(d) Third-party rights: A person who is not a party to this Contract has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.
(e) Notices: Notices under this Contract shall be in writing and served at the address given on the first page, by hand, first-class post or email (with confirmation of receipt). Service provisions comply with section 115 HGCRA 1996.