How builders can avoid conflict on building projects: key steps

Podcast transcript – Season 3 episode 4 – Conflict avoidance

Amy Voce: Hello, I'm Amy Voce and you are listening to the Buildup Podcast, brought to you by the Federation of Master Builders. I'm joined as always in the studio by my co-hosts, Aidan Cropper, Managing Director of Ipsum UK Limited in Nottinghamshire, and David Gutierrez, Director of Nest Building Group in Surrey – both proud FMB member companies.

Today we're talking about something every builder faces at some point: conflict. A disagreement over scope, a delay, uncaptured changes, or different expectations. Whatever the cause, conflict is stressful and costly. But the good news is that most conflict is completely avoidable with the right foundations in place.

Don't forget to hit subscribe so you never miss an episode. We're joined today by Sarah Fox, a contracts expert known as the 500 Word Lawyer. Sarah has worked with the FMB since 2016, developing clear, concise contracts for builders and clients. We also have Jason Grounsell, founder of TED Construction and Developments – an award-winning FMB member recognised for client relationships and a values-led culture.

Sarah and Jason, welcome to the podcast.

Why does conflict happen?

Amy: Sarah, before we get into the practical steps, can you set the scene for us? Why does conflict arise so often in building work, and why is it so important for builders to get ahead of it?

Sarah: It's a great question, because as you said, most conflict is avoidable. There's lots of data about why construction conflict happens and where the friction comes from. The biggest cause of friction across any commercial project, anywhere, is money. A lot of it comes down to clients not understanding what needs to be paid, when, and how quickly – and not understanding how the price is made up. They start with a big-picture figure and get very wedded to it very quickly.

Those of us in construction know that the initial price is almost like a starting point – an option price, if you will. The Arcadis Global Disputes reports consistently highlight the same causes of conflict: poor contracts that people can't read or understand, poor understanding of those contracts, and a poor claims culture – where contractors raise claims that aren't well substantiated or supported by adequate records.

That's where conflict starts: poor foundations.

Amy: And what kinds of assumptions do homeowners typically bring into a project?

Sarah: Too many of them get their understanding of the construction sector from television – whether it's Cowboy Builders, Grand Designs, or similar. That gives them a somewhat fictional view of what construction looks like, which doesn't reflect the reality of the vast majority of projects. So some of it is simply not knowing what the process looks like. If they've never done a project before, they have no real concept of what's involved going forward. Reading a standard construction contract doesn't help – it gives you no understanding of what actually happens day to day.

They may have looked at a builder's brochure or website, but they still don't really understand what that means on a practical, daily basis. A lot of it is about educating clients – helping them understand what a project looks like, how it evolves, and how many decisions they actually need to make. We need to manage their expectations, because that's what really matters. We want happy clients. We genuinely do want happy clients.

Amy: Jason, you're running a busy building company day to day. What tensions and misunderstandings most often crop up?

Jason: Sometimes I find that people have had bad experiences with builders before, and their preconceived idea is that I'm the same, or that all builders are the same. So it's about managing that communication. Within TED, we make sure we have good communication – whether that's through the office, directly with me, or across the team. As soon as that breaks down – which it doesn't for us, touch wood – we address it immediately. We just get on it and sort the problems out.

Are expectations changing?

Amy: David and Aidan, are you finding that client expectations are changing? Are you encountering these kinds of tensions too?

David: I think so. It's all about how we manage it. What Sarah said about TV programmes is interesting – I don't think they help, because they don't go into the detail of how issues actually arise. You get the big dramatic moments where things go wrong, but there's no real understanding of the layers of reasons why small things can spiral out of control.

So the contract is key, but so is enabling clients to understand what's in it – and actually, as a builder, making sure you understand it too. I once had a JCT contract that was a hundred pages long, with a contractor design portion. It was genuinely complicated. I took the time to work through it carefully, and I think that kind of investment really does build trust with clients.

Amy: It sounds like so much of this comes down to clarity – and one of the best ways to set clear expectations is, of course, a proper contract. Which brings us to our first main topic. Sarah, how does having a proper written contract in place help prevent conflict before it even begins?

The importance of a proper contract

Sarah: The reality is that people aren't going to read a hundred pages. Certainly a homeowner isn't going to do that. A proper written contract today means something people can access on their phone – short, simple, and written in their language. Most contracts are written by lawyers for lawyers. The purpose of a proper written contract is to eliminate misunderstandings, make things really clear, and explain the process step by step.

Now, we can't make it too simple – we have the Construction Acts, building safety legislation, and other requirements to consider. But we can try to make it as accessible as possible: easy to navigate, so people can find what they need when they need it, rather than wading through 50,000 words – which is what a typical JCT contract contains.

Aidan: You need to bullet-point the most important aspects of the contract. As long as your quotation or write-up is very clear, those bullet points should align with it and with the general guidelines of the contract.

Is it necessarily a problem to have a contract that's ten pages rather than a hundred, if it's more concise? I get sent a lot of JCT contracts and I've always thought there must be a reason for their length – but is there?

Sarah: When JCT first published the 1963 contract, it was only 25 pages long. So in 1963, they thought 25 pages was enough. The things we're building haven't changed that much. The problem is that every time something goes wrong – a piece of legislation, a court case, a new issue – people add more words to their contracts, thinking it will solve the problem. There's no evidence it does.

When I first drafted a 500-word contract, it was to start a debate – to say, we don't need 50,000 words. We could go back to ten pages. Lots of people challenged me and said it wasn't robust enough. But it covers everything it needs to cover. I've been in the sector for 30 years. A short contract can absolutely contain everything legally required – we know that because letters of intent, which can be as short as four pages, are enforced by courts. It's not length that creates legality; it's just more detail.

The reality is, most of the jobs you do are built on relationships and trust. You work things out pragmatically. Overly detailed provisions can actually hinder you. A short contract can include everything legally necessary.

Aidan: You're basically simplifying it. And if a client really wants to look into the small print, they can go further from those bullet points and find out exactly what the contract means.

Amy: Can I just say – as a homeowner, I've had a lot of work done to properties in the past and I have never once been presented with a contract.

David: [surprised] Oh wow.

Amy: I know you seem shocked, but that is genuinely my experience. What are the dangers of relying on verbal agreements? Should homeowners be asking for a contract? Does it depend on the scale of the job?

David: Everything should be in writing, because you're paying a significant amount of money. There are guarantees and warranties involved. A verbal agreement isn't good enough – everything you agree should be put in writing and reflected in the contract. It's not just to protect you as a consumer; it also protects the builder. We would never carry out work without a contract. Even if there's a variation during the course of the works, we make sure that variation is clearly documented and signed off. It's too risky for everyone involved.

Amy: And builders might often say "I gave the client the contract" – but how important is it to actually walk the client through it?

Sarah: You can give me as many pieces of paper as you like, but unless I've read them, it makes no difference. Handing over a document or emailing a PDF isn't actually an effective way of helping a client understand what's in it – particularly when it's the kind of document typically seen on construction projects: small print, lots of jargon. No client is going to willingly open that and start reading it, no matter how much coffee you give them. [laughter]

It's really important that contracts walk the client through themselves, and that builders say: "This is what's important. This is the payment section – I really need you to read this. This section covers changes – whether they come from you or from external factors like supply chain issues." It's really useful to sit clients down and talk them through the key points.

Amy: Jason, how do you approach this with your clients?

Jason: For every job, before we start on site, we hold a pre-start meeting. We go through every single detail: the contract, the payment schedule, our timelines. We walk them through everything from start to handover. We also introduce them to their dedicated supervisor – so day to day, they have a named person to deal with. I'm at the end of the phone twenty-four seven, three hundred and sixty-five days a year. Never off duty.

If there's anything unforeseen, we'll supply an estimate upfront so they're aware of it, rather than presenting a bill at the end. We walk them through it baby step by baby step so there are no surprises – and they sign everything off as they go. I don't want anyone having to sell a kidney to pay the final bill. [laughter]

Amy: You're staying transparent throughout the project – that's the key, isn't it?

Jason: Exactly. And they sign that all off as well.

David: We do regular valuations – typically every two or four weeks depending on the size of the project. Everything is very clearly itemised. There's a quotation agreed and signed off before work begins, and then it's all reflected in the progress valuations. It just avoids any issues at the end. The client always knows exactly where they are and what the final amount will be. And sometimes the work does need to be done – but that transparency saves those awkward conversations further down the line.

Amy: And I imagine that saves a lot of difficult conversations down the line.

Jason: Massively. That's what it's all about – for both sides.

Real-world examples

Amy: Aidan and David, have you had projects where, in hindsight, simply explaining the documents clearly would have saved a headache later on?

Aidan: Interestingly, I've actually started putting complex contracts – including a hundred-page JCT – into ChatGPT just to get a clear summary. It's been really useful for creating a bullet-point breakdown that you can then share with the client. They can do the same themselves too. It's really helped simplify things.

Touch wood, we've never had to refer back to a contract once a project has started, because we've maintained that level of communication throughout. There's been a shared understanding from day one. Any variations are worked through clearly, and clients always understand why something has changed.

David: It's like managing a football team. You can shout directions from the sidelines, but unless players understand their role and why they're being asked to do something, it doesn't work. It's the same in building – it's about communication, transparency, and explaining things in plain language.

Aidan: Once that transparency is in place, clients feel safe. It's peace of mind – for the consumer and for the builder. Contracts very rarely need to be referred to, but they're there as a safety net. You can always point to them and say, "Look, it's all in writing – clear as day."

The five key elements of a good contract

Amy: So in terms of drawing up that contract and building confidence in the project, Sarah – what are the five most important things that should be included?

Sarah: First, you need a really clear scope – what's included in the price and what's excluded. Without that, you'll have mismatched assumptions. Second, payment terms – what's being paid, and when. Those are the two most critical things.

Third, depending on the type of project, quality standards can be really important. There was a case on Guernsey where a millionaire wanted a luxury house but never defined what "luxury" meant. It ended with him demolishing the completed house rather than paying for it. So quality needs to be clearly defined for each specific client and project.

Fourth, a robust change process – making clear to clients that if something is going to cost more, they'll be told upfront. No surprises. And fifth, the communication and process framework – how you'll stay in touch, how you'll keep the project on track, what you need from the client on a regular basis.

Those five elements together provide a clear roadmap – both for a first-time client and for the contractor – to lead the project from start to finish and avoid the avoidable conflicts.

David: I'd also add that the contract should include a clause stating that if any disagreement arises, the first step is to resolve it verbally and amicably. We include that in our contracts. It sets the tone. Clients appreciate reading that – it tells them we're not automatically heading for a legal route. Nobody wants that. You want a smooth process and a good relationship.

Sarah: And that links to the FMB's disputes resolution service. If a conversation breaks down, having someone come in to mediate is hugely valuable. It's another pair of eyes. I've spoken to members who said it saved their projects. It's a great service, and probably one that should be used earlier in a dispute rather than letting things escalate.

Amy: Absolutely. And the key message is to de-escalate rather than get drawn into legal battles that cost everyone time, money, and energy.

Amy: Some brilliant insights there on how a contract can help avoid conflict – but that's only half the story. Once a project begins, it's the day-to-day experience that shapes how clients feel and whether they'll recommend you.

If you're a builder in the UK, don't forget that FMB membership gives you access to an impartial disputes resolution service, as well as a suite of contracts designed to support clarity, professionalism, and smoother projects with your clients. Visit fmb.org.uk/membership to learn more.

Keeping projects running smoothly

Amy: So let's look at what great builders do during a project that really sets them apart. Jason, once a project is underway, what makes the biggest difference in keeping everything running smoothly and avoiding disputes?

Jason: Communication – within the business and with the client. I hold weekly progress meetings with clients to give them an update, flag anything unforeseen, and discuss any changes or suggestions. But it's not only that – it's making sure all subcontractors turn up when they say they will and conduct themselves professionally. It starts with me and filters down the chain, making sure everyone delivers to our values as a business and meets the client's expectations.

Some clients want minimal contact and just want the job done. Others care about every detail. The key is making sure you're all on the same hymn sheet.

Aidan: It's particularly important as you grow as a business. When it's just you and maybe an apprentice, you have direct control. But as you build a team across multiple projects, you have to instil those values consistently – right down to things like language and conduct on site. If subcontractors are behaving badly and the client hears it, that reflects on us.

[25:56] Amy: You've touched on apps and software for managing communication. Is there anything you use that has made a real difference?

Jason: We use a project management platform in the office where every single conversation with a client is logged. It means everyone in the business can see the full picture at any time. If I've had a conversation and my supervisor isn't aware, it's all there. There's no breakdown in communication, no "he said, she said." We also log site meetings and telephone calls. It's a real wealth of knowledge.

David: We use WhatsApp groups – one per project. The foreman, myself, the client, and sometimes the architect are all in the group. After any meeting, we post a brief summary so everyone is kept in the loop without needing to repeat yourself. It keeps everyone aligned.

Aidan: We've also been using AI tools to minute meetings – both virtual and in-person ones. You just introduce yourself at the start, and the AI transcribes and summarises everything that's been said. It's remarkably accurate and produces a clear record instantly. Then everything is documented and locked in.

David: [laughter] Just be careful about what you say – it's all being recorded!

Amy: Good records really are crucial. Sarah, how does keeping good records support the contract throughout the project?

Sarah: Verbal agreements get forgotten remarkably quickly. Even conversations at home – your partner will remember a conversation completely differently to how you do. The same happens constantly on construction projects. We have to record things, because otherwise memories diverge and you end up with "my word against yours" situations.

Keeping a written record means you can demonstrate: this is what we agreed, this is what we did, and this is what you agreed to pay for. It smooths what could otherwise be a very awkward conversation.

Every time I've seen conflict on a project, there's been an undisclosed backstory – usually a series of small niggles that built up because there wasn't transparency from the start. It's really important to tackle things early, never let them grow, and work amicably. Be respectful and courteous to everyone – we're all just trying to get through this in one piece.

And keep records. If you end up in litigation, in an adjudication, or having to go to your insurers, those records will save your bacon. More importantly, they'll often prevent you getting there in the first place. If a client says, "I didn't agree to that," you can simply show them the record that says they did.

David: It's about good practice and your own risk assessment. Communication, records, photographs, meeting minutes – all of it. Not "my word against yours."

Documenting changes – Including the small ones

Amy: Documenting changes is essential, isn't it? Even the small ones, Sarah?

Sarah: Absolutely. Don't think that just because something seems minor, it won't become significant later. Moving a socket might seem trivial to a client, but it can have knock-on effects throughout a project. Document the small stuff, because you can't always predict where the ripples will go.

[32:06] Aidan: It's the same with subcontractor agreements. You can end up with just as many disputes with subcontractors as with clients, and the consequences can be equally serious. If something changes, that needs to flow down to subcontractors too. The scope of work is just as important in those relationships.

Design errors and contract administrators

Amy: Sarah, when there's a design error, how does a contractor avoid being held responsible – especially on larger contracts where the architect also acts as contract administrator?

Sarah: Contract administrators are a genuinely tricky area. In commercial projects, they tend to be appointed by and paid by the client, so they can be partial to the client. On domestic projects, they're often recommended by builders, but paid for by clients. Either way, impartiality is difficult – especially when the CA is also responsible for design and has to effectively acknowledge their own mistake. Nobody is good at holding their hand up and saying, "You're right, I got that wrong, and it's going to cost money."

I don't think architects make good contract administrators when they're also doing the design. The role needs to be genuinely independent – a neutral party who can have open, transparent conversations about responsibility, cost, and how to mitigate the impact on the project. Otherwise it becomes a finger-pointing exercise and nothing gets resolved constructively.

Aidan: We've had experience of architects who were also acting as project managers – and in that situation, there's an incentive to create issues rather than resolve them, in order to justify their fee. It increases resentment between all parties. In the long run, it's not a good strategy.

Sarah: That's exactly it. They justify their fee by saving the client money at the contractor's expense. But the whole rest of the project team won't want to work with them again. Short-term saving, long-term damage. And on domestic projects, there's actually no reason why the contractor and client can't work directly together, with clear documentation, good communication, and the processes we've discussed. That's good practice in itself.

David: We have a project currently where, for the first time on a domestic job, we've appointed a genuinely independent contract administrator. It's been brilliant. They scrutinise costs carefully, explain variations clearly to the client, and if issues arise, they sit in the middle and mediate. The client has occasionally questioned the cost of the CA role because the project is going so smoothly – and that's the point. The fact that it's going well is partly because of that independent oversight.

 

Turning tense situations around

Amy: Have any of you had moments where good communication and solid contracts turned a tense situation into a positive outcome?

David: Yes – on that same project. We had a difficult situation involving the M&E contractor and some design decisions that the client wasn't happy with. Lots of emails flying back and forth, and the written exchanges were actually building tension rather than resolving it, because tone is easily misread in writing.

In the end, I called a Teams meeting and brought everyone together – face to face. And that made all the difference. You can read the room. You can see body language. Everyone involved was genuinely trying to do the right thing; it just wasn't quite working for the client at that point. But because I'd built that relationship with the client from the very beginning, there was already a foundation of trust – and that made everything a lot easier to resolve.

Amy: Jason, how do you typically handle conflict when it arises?

Jason: The moment I'm made aware of any conflict or issue, I arrange an immediate site meeting – in person. I won't deal with it over the phone. I'll clear my calendar. Because if you leave it, the situation only escalates – whether the other party is right or wrong.

And if you've made a mistake, just say so. Rather than dwelling on the problem, focus on the solution. Reinstall the faith they had in you. You have to be willing to have the awkward conversation. Face-to-face also lets you read body language – you can gauge how upset someone is and adjust your approach accordingly, always working towards a resolution together.

Aidan: Own your mistakes. Everyone's human. And if someone else has made an error – an architect or a subcontractor – don't just pile on. Try to help them out. Don't throw anyone under the bus. That's poor form. You're going to have to remedy it anyway, so just deal with it collaboratively. How you deal with a problem matters far more than the problem itself.

Closing thoughts and where to find our guests

Amy: Well, Sarah and Jason, thank you so much for joining us today. Jason, let us know where everyone can find you.

Jason: You can find us at tedltd.co.uk, and we're on Instagram, Facebook, and now TikTok as well – handle is @TedLtd.

Amy: Excellent! And Sarah?

Sarah: My website is 500words.co.uk – there's lots of free content there, including checklists for reviewing contracts. I'm also on LinkedIn. Sadly, contracts aren't quite as TikTok-friendly as building work. [laughter]

Amy: I wouldn't be so sure – I think you could make it work! And Aidan and David, where can people find you?

Aidan: You can find us at ipsum.com and on Instagram and LinkedIn.

David: And we're at nestbuildinggroup.com, and on Instagram too.

Amy: Thank you both. And if today's episode has given you ideas on how to avoid conflict and strengthen your client relationships, we'd love to hear from you. Email us at buildup@fmb.org.uk and tell us what you'll be putting into practice.

Don't forget to visit fmb.org.uk/membership to find out more about FMB membership, including access to the disputes resolution service and contract templates. Give us a like, subscribe, and hit the bell icon to be the first to hear about future episodes.

Thanks for joining us on the Buildup Podcast, brought to you by the FMB. We'll see you next time for more tips and advice to help your business.