Do I need a written contract for building work?

While verbal contracts are legally valid, a written contract is strongly recommended for any building project. It records the agreed scope, price, timeline and terms, making disputes much easier to resolve. For projects over a few thousand pounds, a written contract is considered essential.

What is a defects liability period?

A defects liability period is a set time after practical completion during which the contractor must return and fix any defects in workmanship or materials at no extra cost. Common periods are 6 or 12 months. This is separate from your statutory rights, which last up to 6 years under the Limitation Act 1980.

How should payment be structured for building work?

Stage payments linked to milestones are the standard approach. A typical structure is: 10% deposit, then payments at key stages (e.g. foundations, roof, second fix), with a final payment and 5% retention on completion. Never pay for work in advance — always pay for completed stages.

What happens if the builder does not finish on time?

If no completion date was agreed, the law requires completion within a reasonable time. If a date was agreed, the builder is in breach if they miss it without a valid reason. You may be entitled to compensation for losses caused by the delay, such as additional rental costs.

What is a retention and why should I include one?

A retention is a percentage of the contract price (typically 2.5–5%) withheld by the client and released after the defects liability period. It incentivises the contractor to return and fix any snagging issues. The retained amount is released once all defects have been rectified.

Simple Building / Renovation Contract Template

Create a clear building or renovation contract with our free UK template.

FreePDF & Word

Your data stays on your device — nothing is sent to any server.

homeowner

Homeowner Name*

Homeowner Address*

contractor

Contractor Name*

Contractor Company

Contractor Address*

project

Property Address (where work will be carried out)*

Detailed Description of Works*

pricing

Total Contract Price (£)*

VAT Status*

Payment Schedule*

schedule

Proposed Start Date*

Expected Completion Date*

Terms

Variations Procedure*

Defects Liability Period*

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BUILDING CONTRACT Date: This contract is entered into on the date of the last signature below. BETWEEN: The Homeowner: [homeownerName] [homeownerAddress] ("the Client") AND The Contractor: [contractorName] [contractorAddress] ("the Contractor") -------------------------------------------------- 1. PROPERTY -------------------------------------------------- The works shall be carried out at: [propertyAddress] -------------------------------------------------- 2. DESCRIPTION OF WORKS -------------------------------------------------- [workDescription] -------------------------------------------------- 3. CONTRACT PRICE -------------------------------------------------- Total Price: £[totalPrice] VAT: [vatNote] -------------------------------------------------- 4. PAYMENT SCHEDULE -------------------------------------------------- [paymentSchedule] -------------------------------------------------- 5. PROJECT SCHEDULE -------------------------------------------------- Start Date: [startDate] Expected Completion Date: [completionDate] The completion date is an estimate. The Contractor shall notify the Client promptly of any circumstances likely to cause delay. Extensions of time may be granted for reasons beyond the Contractor's reasonable control, including adverse weather, supply chain delays, or Client-requested variations. -------------------------------------------------- 6. VARIATIONS -------------------------------------------------- [variationsProcedure] -------------------------------------------------- 7. DEFECTS LIABILITY -------------------------------------------------- The Contractor shall rectify, at no additional cost, any defects in workmanship or materials notified by the Client within [defectsLiabilityPeriod] of practical completion. The Contractor shall attend to defects within a reasonable time of notification. -------------------------------------------------- 8. STATUTORY OBLIGATIONS -------------------------------------------------- The Contractor is responsible for ensuring the works comply with the Building Regulations 2010 and obtaining building control approval where required. Any planning permission required shall be the Client's responsibility unless otherwise agreed. -------------------------------------------------- 9. GENERAL TERMS -------------------------------------------------- a) The Contractor shall carry out the works with reasonable care and skill in accordance with the Consumer Rights Act 2015. b) All materials supplied shall be of satisfactory quality and fit for purpose. c) The Contractor shall maintain appropriate public liability insurance throughout the project. d) The work area shall be kept reasonably tidy and cleared on completion. e) This contract is governed by the laws of England and Wales. -------------------------------------------------- SIGNATURES -------------------------------------------------- Client: ________________________ Name: [homeownerName] Date: ________________________ Contractor: ________________________ Name: [contractorName] Date: ________________________

Important Notes

Legal Disclaimer

For consumer contracts, the Consumer Rights Act 2015 applies. Services must be performed with reasonable care and skill (s.49), materials must be of satisfactory quality (s.9) and fit for purpose (s.10), and work must be completed within a reasonable time if no time is agreed (s.52). The Supply of Goods and Services Act 1982 provides similar terms for B2B contracts. Building work must comply with the Building Regulations 2010, and certain works require building control approval. Under the Defective Premises Act 1972 (as amended by the Building Safety Act 2022), anyone carrying out work in connection with a dwelling owes a duty to ensure it is done in a professional manner with proper materials, so that the dwelling is fit for habitation. The limitation period for breach of contract claims is 6 years (Limitation Act 1980).

This template is provided for informational purposes only and does not constitute legal advice. For complex legal matters, we recommend consulting a qualified solicitor.

Frequently Asked Questions

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