It is surprisingly easy to enter into a building contract.
All you need to agree is what the works will be and where they will be built. Provided it is clear that you intended to enter a binding contract, the law will do the rest. Nothing else is required, not even that the contract be in writing.
The law will decide when the builder has to start the work; when it has to complete it; and how much you have to pay. The builder only has to do the minimum work commensurate with the information provided. It has to start within a reasonable time and take a reasonable time to complete the project. The builder gets paid the going rate for the job.
It gets worse. As soon as you agree to any change in the works required, whether a major redesign or just different materials or doing things in a slightly different way, any price you have agreed is varied by the amount appropriate to the change (or by an amount you have agreed for that change). In addition, any date you agreed the work would be done by is changed to a reasonable time to complete the outstanding works.
There are also detailed statutory provisions that apply with regard to payment and dispute resolution. The payment provisions impose strict notice requirements. The builder is entitled to monthly interim payments based on the value of the work done. If you do not comply with the statutory notice requirements, the builder is entitled to be paid the amount he has asked for, not what he is actually due.
Both parties have the right to take a dispute to statutory adjudication. The decision of the adjudicator is binding on the parties unless and until the dispute is rerun before a judge or an arbitrator. That is the case even if the adjudicator makes a mistake.
You are not entitled to terminate the contract just because the builder has not finished by the agreed date, just as the builder is not entitled to terminate just because he was not paid on time.
All this means that if you are looking to build new commercial premises, you need to make sure that you have a contract in place that does not leave you at the mercy of what the law will impose. Your building contract should address not just what you want built, but also when the work should be started and completed; the payment obligations; changes to the work and their effect on the date of completion and the price; and the termination provisions, all in a manner you are happy with.
It is the job of your solicitor to help you put in place such a contract.
One further word of warning though. The statutory adjudication and payment provisions apply, whatever your contract says. Your solicitor can, however, advise you on what they are.
