Standard Terms of Business
DEAN OTTLEY BUILDING CONTRACTORS LIMITED
1. Definitions – Dean Ottley Building Contractors Limited is referred to as “the Contractor” and the party or parties for whom the works are provided are referred to as “the client” in these terms of business.
2. Payment – An invoice will be issued by the Contractor to the client on a stage payment or at works completion basis for the works carried out by the Contractor or upon the conclusion of the original works if earlier. The Contractor may include in those invoices claims for payment in relation to any further goods or services requested of the Contractor by the Client or by the local authority building control, surveyor (NHBC), architect or structural engineer which are additional to the original works and provided by the Contractor. The Contractor will attempt to agree in advance of performance of the additional works with the client his remuneration for the additional works, but otherwise will be entitled to payment from the Client of a fair and reasonable sum. The Contractor will allow a fair and reasonable sum for any changes to the original works arising from omissions to the original works requested by the Client. Invoices are due upon receipt by the Client. The final date for payment of the Contractors invoice is 5 days from the date of the invoice for stage payments or 14 days for all other invoices. VAT if applicable will be charged at the current rate. Payments are to be made to Dean Ottley Building Contractors by means of bank transfer, cheque or cash.
3. Retention Monies – will not be deducted from any payment unless agreed with the contractor prior to signing the contract. If required this will be noted and agreed by both parties.
4. Additional Works – will generally be charged at day works rates plus expenses and disbursements. Materials will be charged at cost plus 15%, any plant, equipment or scaffolding involved will be charged at cost plus 20%.
5. Duty of Contractor – The Contractor shall carry out the original works and any additional works exercising reasonable skill and care. The Contractor’s works do not include advice in connection with (a) the Party Walls Act 1996 or (b) the Construction (Design and Management) Regulations 2015 in respect of which the Client should seek separate advice. The Contractor has no responsibility for the design of the original works or any additional works unless agreed otherwise in writing by the Contractor.
6. Interest – Any sums due and remaining unpaid following the expiry as above from the issue of an invoice by the Contractor to the Client shall bear interest at the rate of 8% per month interest. Such interest will be paid to the Contractor by the Client on demand.
7. Termination – The Contractor shall be entitled at any time to terminate his employment by giving 14 days notice in writing to the Client. Upon termination, the Contractor shall promptly take all practicable steps to bring to an end the Contractor’s services in a diligent and orderly manner. The Client shall pay to the Contractor all sums then properly due and owing to the Contractor under the Contractor’s quotation and clauses 2, 3 and 5 above. Termination or suspension of the employment of the Contractor shall not affect the operation of any provisions of these terms of business which remain capable of operation after such termination.
8. Timescale/Budget – The Contractor will endeavour to complete the works within the agreed timescale but will not be liable for any consequential costs should the contract period be extended due to anything outside his control, i.e. inclement weather, material deliveries, awaiting information from the Client, Local Authority or any other professional body, directly employed subcontractors or force majeure. The Contractor does not warrant that the works may be completed within any budget or that planning consent or statutory approvals will be granted.
9. Architect, Engineer or other Third Parties – it may be necessary to appoint an architect, an engineer or other third party to advise on various aspects of the project. The Client will be responsible for payment of the architect, engineer or other third party’s fees.
10. Limitation and Insurance – The Contractor holds the following insurances: Employer’s Liability £10,000,000 Public Liability £2,000,000 and Contractor’s All Risks £200,000.
It is the clients responsibility (if necessary) to notify his household insurer that construction work is being undertaken, and on completion of such works.
11. Resolution of Disputes – These Terms of Business are subject in all respects to English law, and the English courts shall have exclusive jurisdiction with regard to all matters arising under or in connection with it. If any dispute or difference (Dispute) shall arise between the Contractor and the Client during the course of or subsequent to the carrying out of the original works or any additional works the parties shall meet in a good faith effort to resolve the dispute. The parties may also approach the Federation of Master Builders for assistance in resolving the dispute. At any time the parties may refer a dispute to an alternative dispute resolution body or an adjudicator either agreed between the parties or nominated by a recognised adjudicator nomination body and the rules of the adjudication shall be those of the Model Adjudication Procedures published by the Construction Industry Council at the date of the reference.
12. Third Part Rights – The parties hereby confirm that notwithstanding any other provision in this appointment it shall not purport to confer on any third party any right to enforce any term of this appointment for the purposes of the Contracts (Rights of Third Parties) Act 1999.
13. Warranty – If a warranty is included in the contract or added to the original contract price the terms and conditions included therein will take precedence should there be a conflict between these terms of business and the terms and conditions in the warranty should a claim arise. The defects liability period of works will be six months from the completion date. During this period the Contractor will put right any defects due to workmanship or materials.
14. Facilities – The contractor will be permitted access to water, electric and toilet facilities unless agreed other wise.
15. Construction Design Management (CDM) Regulations 2015 – the client is responsible for notifying the HSE if the project lasts longer than 30 working days and there will foreseeably be more than 20 workers on site at any one time, or the project duration will exceed 500 person hours. It is recommended you consult your chosen contractor or your project designer for guidance.
16. Goods and Materials – All goods and materials brought to site remain the property of the Contractor until paid for in full.
17. Unforeseen Defects – Any defects discovered in an original structure requiring works by the Contractor will be costed and the price agreed before commencement.
18. Asbestos – If Asbestos is discovered, work will cease immediately awaiting removal by a specialist Contractor. All costs involved will be the responsibility of the Client.
19. Working Hours – These will be 8:00 to 17:00 Monday to Friday and 8:00 to 13:00 on Saturday unless otherwise agreed. Full and unrestricted access will be made available during this period.
20. Areas of Work – The Client will ensure that the working designated areas are kept clear of obstructions and personal effects throughout the contract period.
21. Other Operatives – The Client will not employ any other tradesmen to work on the site without the prior consent of the Contractor.
22. Waste materials/goods – During the demolition and construction process the contractor is responsible for the removal and correct disposal of created waste, materials and goods. All such salvaged materials will become the property of the Contractor regardless of any potential value unless otherwise specified by the Client before work commences.
23. Any Variation to these Terms of Business must be agreed in writing between the Contractor and the Client.