11 benefits of FMB building contract templates

It is essential to have a signed, written contract in place before you go ahead with any building work to better protect your business.

A written contract for building work demonstrates you provide a professional service to clients, and it helps to ensure you and your client are clear on what has been agreed. Contracts can also help to prevent misunderstandings, and they can support you to take action for non-payment should this be necessary.
 

11 reasons to use an FMB contract template

Having access to a wide range of up-to-date contract templates and free legal advice is a key benefit of FMB membership. Here’s how our contracts are different:

1. They are written by lawyers and tried and tested by builders
   Our building contract templates are written by FMB lawyers and adapted with feedback from our members to ensure they are as easy to use as possible. This makes our contracts unique as they are tried, tested and have been refined by thousands of our members over the years. We can truthfully say that our contract templates are created by small builders for small builders to use (with legal input of course!).

2. They are practical and easy to understand
   Our contract templates use simple language rather than legal jargon and they are clearly structured with guidance notes throughout. They are easy to understand so that both builder and client can have confidence in knowing what they have signed up to.
3. They are short and concise
   Our contract templates are as concise as possible. The average length of our building contracts is 11 pages, which is a lot less compared to other industry templates which can be 30 or more pages in total. When using our contracts, a builder only needs to enter the project details on the first page of the contract and add the payment schedule details at the end as the rest of the document contains standard terms and conditions.
4. They are exclusively available to FMB members
   Our contract templates for building projects are exclusive to our members and they are not available elsewhere. Using FMB contracts can reassure clients that you are a vetted and independently inspected member of the FMB that operates in a professional way.
5. They are free to use with unlimited downloads
   Whereas some providers charge a fee for access or download contract templates, our contract templates are free to FMB members. They can also be downloaded as many times as needed with updated versions made available.
6. They include a unique timeline feature
   Our contracts include a timeline feature, which helps clients to see the building process and to better understand the impact of any delays on a project.
7. We offer additional support for free
   Most of the time, the contracts can easily be used without the need for additional legal advice. However, extra guidance is available to FMB members including contract guidance notes, a free legal advice helpline, and a comprehensive series of webinars on various aspects on contract law. This support is provided to FMB members for free, whereas consulting with a local solicitor can cost more than £200 per hour.
8. They focus on resolving disputes positively
   The contract templates all focus on encouraging parties to talk amicably to resolve any dispute that might arise informally. This approach is supported by the FMB’s dispute resolution service, which provides free telephone mediation to help builders and clients get their projects back on track. That’s why we signed up to the RICS’s Conflict Avoidance Pledge, which is about reducing the number of disputes in construction. Other building contract templates often encourage adjudication or court proceedings, which can be costly and may involve lengthy delays.
9. They protect your rights
   The right to end the contract if your client continually refuses to pay is included within the contract templates as standard.
10. Our contracts are tailored to suit different projects
    We offer a wide range of contract templates to suit a variety of projects. Our contract templates are also tailored for each of the devolved nations to ensure the contracts are relevant to local laws and fit for purpose.
11. Our contracts are flexible and up to date
    In response to the volatile building material prices in recent years, we inserted a new clause into our contract templates to address price rises. The clause provides flexibility for builders to change the price in the event that costs for building materials increase (which is beyond their control) and impact the project. We also provide a template letter for members to share with clients to explain the industry issues relating to building material pricing and availability.
     

What building contract templates are available from the FMB?

Our contract templates cover a wide variety of project types and they are tailored for England, Wales, Scotland and Northern Ireland.

What are the alternative options for contract templates?

Although it is best practice, not all builders use contracts, which can be a red flag to clients looking to find a reputable, trustworthy, and professional building company. So, what are the alternative options for accessing building contracts and what are the risks associated with them?

• Use other industry contracts – contract templates are available from other organisations such as JCT and RIBA. These contracts are also good options and they are well-known, which means some clients may specifically request they be used for their project. However, these templates often cost money to access, and they can be quite lengthy and complicated. FMB contract templates are shorter and more straightforward to use.
• Write your own contract or find one online – building contracts that are written without professional legal input, or that are accessed from unreliable sources, may not be compliant and therefore may not stand up in court. This would expose a business and its clients to further risk if the contract is deemed invalid or not legally binding.
• Hire a lawyer – even if a business engages a lawyer to draw up professional, legally binding contracts, these will need to be reviewed regularly to ensure they are up to date and reflect any changes to regulations. This process may become expensive and time consuming. The FMB’s contract templates benefit from legal reviews as well as feedback from thousands of builders.
• Do not use any form of contract (not advisable) – some builders may not use a written contract or any contract at all and instead rely on supplying simple quotes and specification documents to clients. This exposes a business to considerably more risk as it becomes harder for them to enforce their rights in the event of a dispute or an issue with non-payment from a client. Not using any form of a contract is not advisable.

If you'd like to access simple, easy-to-use contract templates and free advisory services, apply to become a Master Builder today. 

Free guide to consumer contracts for builders

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