A contract for every job

01/04/2009 20:54:00

Article appeared in Master Builder, April 2009

When you agree to do a job for a customer it’s imperative that all the details, including the cost is written in a contract.

But to a busy builder, writing up a Contract could be regarded as being a bit of a chore! However, with consumer organisations encouraging home owners to be wary of any builder who is unwilling to
enter into a contract, those that are prepared to present a document to their customer will stand a greater chance of winning the work and also protect themselves against any possible dispute.

The law assumes that when a building contract is agreed by two parties, there is an intention to create legal relationship whether verbally, in writing, or both, unless one of the parties is incompetent (drunk, a minor, mentally ill or suffering a senile age related illness).

As long as the builder and the second party are both competent, the contract is legally binding and provides an important reference point should a misunderstanding occur, plus framework under which a resolution can be found.

CONTRACTS PROTECT BOTH PARTIES

For those who have had a customer who wouldn’t pay for the building work, or have had a customer make changes during a job and then refuse to pay the extra costs, a signed contract goes a long way to resolving any dispute. And in the current climate, when people are taking longer to pay (or in some cases refusing), having a contract or payment schedule is vital.

The FMB believes that disputes occur because of a simple lack of understanding as to what was agreed in the original quotation. So by providing a clear defi nition of the work to be done in a Plain English Building Contract before they start, builders can avoid misunderstandings on site. They can then work a job safe in the knowledge that no-one is in doubt about the work covered, its value, obligations, payment timings, defects, warranties, dispute resolution and more.

SOFTWARE SOLUTIONS

Fortunately, builders who still don’t enter into a formal contract using the excuse that it takes too long or have ‘got by in the past’ can take advantage of a new software programme that does all the work for them.

Called ContractsXpert, the new software has been developed by HBXL in collaboration with the FMB and will make sure builders - and customers - know exactly where they stand legally.

INSTALLATION AND GETTING STARTED

When you buy any new software the fear is that you will have to spend ages ploughing through the user guide.

But once the ContractsXpert disk is inserted into your computer the on-screen prompts guide you through the set up quickly and easily.

Once the software is installed, the fi rst thing to do is to create a new contract with three simple options to choose from. These include creating a new contract, importing project details from EstimatorXpress or copying and amending an existing contract. To make things easy, the software has four basic FMB contract types which the user chooses by using the onscreen
wizards. These include:

• Plain English Domestic Building Contract for Minor Building Work (up to £50K)
• Plain English Domestic Building Contract (Scotland) for Minor Building Work (up to £250K)
• Plain English Domestic Building Contract (up to £500K)
• Plain English Commercial & Industrial Building Contract (up to £500K).

Once selected, you then enter the project details into the specifi ed fi elds, answering a few simple questions. Then, once all details have been inputted, you review and print the contract. It may be more than one page - but each page is easy to follow.

It may seem that for such an important document, the process is far too simple, but what HBXL has done in conjunction with the FMB is provide the legal basis for safe-guarding the builder.

WIZARD!

When you follow the guidance notes (which also explain the legal terminology) to create a contract, you really begin to see what you get with this package. It only takes a couple of minutes to defi ne the job specifi cation and produce the contract using the wizards.

The wizards also enable the user to enter data into the engine of the application and break the process down into easy logical steps. They also provide good visuals, making data entry easy and logical.

PRACTICALITY

Like any other software, the more you use it the easier it gets. However with ContractsXpert, the learning curve is very short. It means users can produce contracts very quickly spent sorting out the paperwork.It therefore frees up the builder to concentrate on the job in hand, safe in the knowledge that they are covered by a legitimate contract.

ContractsXpert can be used in conjunction with HBXL’s EstimatorXpress or as a stand alone piece of software. Any builder looking to protect themselves with a formal contract will be able to use this new software and make sure all parties know where they stand, outlining a clear defi nition of what work is to be undertaken,how much it will cost and key dates.

The FMB has produced an excellent set of template building contracts which HBXL has transformed into electronic versions, combining HBXL’s software expertise and the FMB’s legal knowledge. It’s fast and reassuringly backed by the fact that the contracts it produces are based on FMB Plain English contracts. Builders should therefore be far more confi dent in producing contracts when they quote for some work.

FMB member Glenn Mellor, agrees that ContractsXpert is a very easy piece of software to use. He said: “The software was very simple and straight forward to use. And because the contracts it produces are authored by the FMB it gives a real sense of reassurance not only for the builder but also for the customer. It leaves no-one in doubt about the work it covers, it value, payment timings and obligations.”

The fact that all the contracts come from the FMB, means that builders and customers can progress with a job safe in the knowledge that the terms they are working to have come from the country’s leading trade association.

Also, all the FMB contracts produced by ContractsXpert have the Crystal Mark seal of approval for the clarity of the wording which will again, help to understand the terms and conditions.

For further information on ContractsXpert, or to book a free demo please call 0870 850 2444, click below to chat to an advisor now or visit www.hbxl.co.uk/contractsxpert

Master Builder, April 2009

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