5 Work Stage 5: Construction

Work Stage 5: Let us get building

Construction 3-12 months*

(*depending on the size of the project)

5

Tender Action We would invite competitive tenders at this stage from three or four contractors. You may have a nominated list of preferred contractors who have carried out work for you previously. We are happy to invite tenders from your nominated list, provided that we are assured of the quality of their work. We will also analyse the returned tenders on your behalf and advise you on the returned information. Legal Agreement/Pre-Contract We would strongly recommend that all works be completed under a written Building Contract with the Contractor, and we are happy to advise on the best type of contract for your works. It is essential before you enter into a legally binding contract with the Building Contractor for you to make sure that a number of matters have been addressed satisfactorily. If these are not dealt with in advance the likelihood is that this will have cost implications for the client if the contract has been signed and then an unresolved client matter prevents progress of the project. The following list is not comprehensive, but things to consider: • Funds - You have sufficient funds in place for the project both in total and for the monthly certificates (payments to the contractor). • Ownership - You have a proper legal title to the land, there are no legal disputes at all and boundaries are clear.

• Party Wall - An agreement must be in place where there is work not just on the party wall or boundary but within 3 metres (or 6m in specific circumstances) of the boundary. This normally requires an agreement to be signed by the parties (i.e. your neighbours) at least 14 days before the work begins. • Contract - We can arrange the contract documents on your behalf with the appointed contractor. These documents commit the contractor to build in accordance with the contract documents for a certain sum in a certain period. It also commits you to pay the contractor in accordance with the terms of the contract. Usually in monthly stage payments throughout the contract until completion. • Insurance - The Principal Contractor is responsible for his general

Insurance and public liability insurance. You are responsible for your own public liability insurance. On new works, the fire insurance is the responsibility of the Principal Contractor. Where work is taking place on an existing building, then you will need to take out fire insurance in joint names with the contractor and yourself. These insurances will all need to be in place BEFORE work starts. We would always recommend contacting your existing building insurer to make them aware when you are looking to undertake any building works, to check if these works will have any implications on your cover. During the contract, the following will need to be considered:

• Retention - Normally a “retention” of 5% of the value of the contract is held back from each interim payment (usually paid monthly) to cover any potential defects. Half of this cumulative retention sum will typically be paid to the Contractor at Practical

Completion of the works, with the remaining balance being due to the Contractor upon completion of the making good of defects arising during the agreed defects liability period specified within the contract. (Please refer to ‘snagging’ below)

• Building Control Officer - The Building Control Body will need to inspect the works during construction. They will require a fee for this work which is payable by you in advance. The Building

Control Officer will issue a Completion Certificate to you at the end of the project. We can help advise on getting the relevant

Building Control body in place to carry out both a Plan Check and the Inspections required. • Planning conditions - There may be certain planning conditions that will need to be discharged during the course of the construction works and prior to you being able to occupy the completed building. CGT can help to assist, working alongside the

Principal Contractor, to ensure that these conditions are closedout in a timely manner.