Spirit Architecture

Construction

Contract Administration

Under a standard Building Contract I normally undertake fortnightly visits and issue 4 weekly minutes and certificates to you and the builder, confirming what they have completed and checking workmanship and answering site queries.
Alternatively if you run the project yourselves but want ad hoc advice for particular issues I can offer that at my hourly rate.

Most Building Contracts work on the following basis:

The client pays for works COMPLETED on a fortnightly or monthly basis, this is certified and agreed at site meetings and an invoice issued to be paid within 14 days.
Deposit payments are not normally required except for very large specialist items like oak frames or large glazed structures when a particular supplier has their own terms and conditions.

A 5% Retention of the certified works is kept by the client in a separate deposit account during the contract which is a standard contractual “safeguard”. Although not usually checked I would recommend this is paid in at the same time as the certificate is paid as the money legally belongs to the contractor.
Most contracts have a “penalty” clause so that if works are delayed due to the contractor there is a weekly “penalty which the client is entitled to deduct from the contractors payment.

This sum is pre-agreed before signing the contract and normally covers: rent or storage costs, related fees and other “reasonable” financial penalties. All contracts have time allowances for “unseasonal” weather delays and additional works requested by clients after the contract is signed.

Practical Completion

At the point when the area being built under the contract is ready for use this is termed “Practical Completion”, and is usually granted when the client gets “beneficial use” of the building.
At this point half the retention is paid over to the contractor and 2.5% Retention is maintained during the “Defects Liability” period.
At this stage a manual for the equipment used in the building is handed over to the client. For non-domestic projects there is a Health and Safety file which is then collated.

 

Would you like to know more?

Phone us on 01451 839 003 or get in touch via our contact form

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