Hi all, after many months of tendering, looking at builders past work and speaking to builders, looks like we have narrowed it down to two builders. We are in the final stages of locking in a building contract. An ABIC contract has been recommended. Anyone had any experience with this type of contract. What are the clauses that we should be wary of ? Any recommendations as to what we should be including in the contract? Thanks
I would strongly recommend having a solicitor check the contract before you sign and fully explain it to you. In view of the high cost of a house, the cost would be well worthwhile. In any dispute with the builder, the result will depend on exactly what is written in the contract. Marg
I would include some carefully worded clauses (by a lawyer) in regards to 1. liquidated damages for time overruns 2. provisional sums (plenty of builders underquote provisional sums to get the job then you're stung with the actual cost) Be aware of - time given in contract to pay invoices. Some builders will change this to 5 days which is impossible with bank processing. Minimum 10 working days - what rights you have to invoices/proof of prime cost and provisional sums - what constitutes allowable delays (goes to liquidated damages knowledge) - what happens if you cause delays and/or ask for variations during construction - when should variations be paid (always after the work has been done, not before) That and engage an independant building inspector to ensure any little or big issues are dealt with as they happen and not at the end when it's much harder
The big thing is the specs and making sure everything you are expecting is included in the contract. My recommendation would be getting a consultant with experience in reviewing building contracts. They will be able to tell whats missing and what needs to be included or amended. Its the detail that gets you and you end up paying heavily as they come up half way or towards the end of construction.
Use an RAIA/MBA form of contract. A local solicitor is not familiar with building contracts, use a construction lawyer Get familiar with the security of payments legislation
The consultant we are looking at getting to assist us is also a project manager. This Project Manager is of the opinion that there will not be any need to go and see a solicitor if an ABIC contract is used because it is fair to both parties. However, we will still engage a solicitor.
Would recommend staying away from MBA contracts, they're too lenient. The Architect (if they're administering the project for you) will have more experience with this side of things and should be able to make an educated suggestion for the contract. Regarding clauses, Westminster's recommendations are correct. You want an idea of Liquidated Damages, Provisional Sums (it may be worth having these checked by the Architect or a Quantity Surveyor), and also confirming what the contract documents are (making sure that the specification is included in there, and that this accurately reflects what you want).
