The Association is aware that a number of Members are in the habit of entering into contracts based purely on an offer (a quotation for carrying out the work) and an acceptance of that offer by the customer.

There is no doubt that this offer and acceptance procedure leads to a perfectly legally binding agreement.

But what if a dispute arises during the course of the contract or, invariably, towards the very end of the contract?

Contractual Problems Currently Being Encountered

1. The customer, for some reason is not satisfied with the work and refuses to pay the last instalment due.
2. The Member refuses to complete the last portion of the work because he has not been paid, or he fears that, even if he completes the work satisfactorily, he will never receive his money.
3. A dispute between the contractor and his client grows to the point where the customer refuses to allow the Member back on site.

The Member calls upon the Association to get involved in resolving the impasse and, in many cases, this results in a compromise being arrived at.

But what happens when even this approach is unsuccessful? 

The Member is now faced with taking legal action to recover his money, a costly and very lengthy exercise.  It can take two years before the case even comes to court.

The answer is to ALWAYS incorporate into the contract a set of conditions which

1. protect both parties fairly and
2. contains an arbitration, adjudication or mediation agreement whereby the parties agree that any dispute that may arise out of the contract will be settled by any of the above methods.

This agreement avoids litigation and provides a much speedier resolution of any dispute.

The Association has a range of model forms of contract agreement available to Members, all of which are recommended and recognised in the Industry and which will provide the necessary protection. In addition contract agreements should be signed between the Main Contractor and their subcontractors.

R.H. Stembridge | Building Services Manager