He Was Valeting Cars 3 Months Ago… Now Handling a £1m Build?

I visited a property recently where a client was on the verge of handing over close to £1 million to a contractor for a substantial refurbishment and fit-out project.
On the surface, everything appeared to be in order. The contractor presented well, spoke confidently, and had already undertaken a couple of projects.
However, as part of my due diligence, I carried out some background checks.
What emerged was concerning.
Only a few months earlier, the contractor had been operating in a completely different line of work — car valeting. His move into construction was recent, and his experience at this level was extremely limited.
At that point, the situation changed entirely.
The Real Issue
There is nothing inherently wrong with someone entering a new industry or building a business from the ground up. Many competent builders have developed their skills over time.
The issue is this: does the scale and complexity of your project match the contractor’s experience and capability?
Construction is not forgiving. Mistakes are costly, delays are disruptive, and rectifying poor work is often far more expensive than doing it properly in the first place.
Too often, clients assume that someone else has carried out the necessary checks. In reality, that responsibility usually falls on no one.
The Corporate Veil – A Hidden Risk
One area that is often overlooked is the protection afforded to contractors through the corporate structure they operate under.
In many cases, the contract is with a limited company. That company may have minimal assets, a short trading history, and limited financial resilience. If things go wrong, the practical ability to recover losses can be severely restricted.
This is not unusual. It is simply how many businesses are structured. However, it does mean that clients can be exposed if the position is not properly understood at the outset.
As part of our process, we treat this as a key risk factor. We look at the underlying entity, its history, and its financial standing, and we build in safeguards to reduce exposure.
These safeguards may include tighter payment structures, verification of insurances, clarity on contractual responsibilities, and ensuring that risk is not disproportionately carried by the client.
What We Checked
Insurance: public liability, employers’ liability, contract works, adequacy of cover, and policy wording.
· Public liability insurance
· Employers’ liability insurance
· Contract works insurance
· Appropriate level of cover for a £1 million project
· Policy wording covers the proposed works
Track Record: evidence of completed projects and comparability in scale.
· Evidence of completed projects
· Comparable scale and complexity
· Verification of claims made
Competence and Delivery: who is actually carrying out the work.
· Established team or reliance on subcontractors
· Management of subcontractors
Specialist Works: structural, electrical, mechanical and critical elements.
· Relevant qualifications and certifications
Financial Standing: ability to sustain a project of this size.
· Exposure to cashflow pressure
What Could Have Gone Wrong
· Large sums paid out early with limited protection
· Inability to complete the project
· Insurance failing to respond to claims
· Poor workmanship with little recourse
· Delays, disputes, and escalating costs
What We Did
· Alerted the client immediately
· Restructured payment arrangements
· Verified and strengthened insurance cover
· Clarified scope and responsibilities
· Reassessed contractor suitability
Key Takeaways for Homeowners
· Do not rely on presentation or confidence alone
· Match experience to project scale
· Verify insurance properly
· Be cautious of recent trade changes
· Understand who will deliver the work
· Take independent advice before committing funds
A Final Thought
Most projects do not start as disasters. They begin with optimism, trust, and a desire to move forward.
A relatively small amount of time spent reviewing the position properly can prevent significant cost, delay, and stress later.
The Building Guidance Partnership
www.thebgp.co.uk



