You and your contractor - how not to get it wrong

Sunil Radia • 21 May 2023

Stress free building projects

Embarking on a home building project is an exciting endeavor, but it requires careful planning and a solid foundation to ensure success. Finding the right building contractor and establishing clear arrangements are key to avoiding disputes and potential pitfalls. At The Building Guidance Partnership (BGP), we specialize in creating carefully planned arrangements between homeowners, builders, and other team members. Our aim is to foster a good, effective, and efficient working relationship. In this article, we will provide advice on how to navigate the process.


Finding the Right Building Contractor


Selecting the right building contractor is crucial for a successful project. To avoid potential issues, it is essential to research and vet potential contractors thoroughly. As experts in this field, BGP can assist you in finding the ideal contractor for your project. Contact us for recommendations and references, ensuring that you make an informed decision based on a contractor's reputation, credentials, and expertise.


Clearly Defined Scope of Work


Establishing a clearly defined scope of work is vital to minimize misunderstandings. At BGP, we specialize in creating detailed plans and specifications that outline your project's requirements. Our experienced architects and designers work closely with you to ensure all aspects of the project are clearly defined. A thorough plan prepared prior to engaging a builder will mean that unexpected costs disputes and delays are avoided. It is not uncommon for building projects to be completed with the final financial outlay sometimes being 50% over the initial budget. A well structured scope and specification agreed before commencement can minimise these uncertainties.   


Contracts and Legal Considerations


Formalizing the agreement between you and the building contractor is crucial for protecting both parties' interests. BGP specialises in drafting solid contracts that encompass all aspects of the project. Contact us to benefit from our legal expertise and ensure that your contract covers the necessary details, including payment terms, dispute resolution mechanisms, and any specific terms agreed upon.


Clear Defined Payment Plans


Knowing how much to pay and when during a building project is key to ensuring that the project is funded adequately and also ensuring that you are not overpaying. A structured progress based payment plan will give you peace of mind throughout. This is always included in our package of services.


Effective Communication and Regular Updates


Maintaining open and transparent communication throughout the project is essential. BGP understands the significance of effective communication and can assist you in establishing a streamlined communication process with your building contractor. Contact us to learn how to foster a healthy working relationship based on regular updates and clear channels of communication. We can assist with regular site visits and also a telephone advice line available to you throughout your project.


Managing Changes and Variations


Navigating changes and variations effectively is crucial to keep your project on track. BGP specialises in managing these situations by implementing written change orders and ensuring that all parties are in agreement. Contact us to learn how our expertise can help you handle changes and variations in a structured and organized manner.


Conclusion


When it comes to working with a building contractor, careful planning and professional guidance are paramount to avoid common pitfalls. The Building Guidance Partnership (BGP) is here to provide you with expert advice and assistance throughout your home building project. By reaching out to BGP, you can benefit from our expertise in creating carefully structured arrangements between homeowners, builders, and other team members. Contact us today to ensure a smooth and successful construction experience. Together, we can make your dream home a reality.



Case Study – Building Without Insurance

by Niket Kapur • 20 March 2026
A homeowner commenced building works on their property without arranging appropriate site insurance. This is not uncommon. There is often an assumption that either the contractor’s insurance will be sufficient, or that an existing household policy will continue to provide cover. In this case, neither applied. Partway through the project, it became clear that there was no valid insurance in place. At that stage, the position became significantly more difficult. Insurers were unwilling to provide cover retrospectively. From their perspective, the risk had already begun without protection, and they were being asked to step into an unknown position. The property was effectively uninsured during an active construction project. We were instructed to review the situation. A structured approach was taken, including: Clearly defining the scope and stage of the works Presenting the risk in a transparent and credible way Engaging directly with specialist insurers Following extensive discussions, we were able to: Secure appropriate site insurance cover Bring the project back within an insurable and protected framework This was not straightforward. It required persistence and a clear understanding of how insurers assess risk. On a construction project, the absence of insurance is not a minor oversight. It is a significant exposure. If you are planning a build, it is worth ensuring that the right cover is in place before work begins. 

Case Study – Council Tax, Planning Delays and Structural Issues

by Niket Kapur • 20 March 2026
A homeowner commenced a significant renovation project with the intention of improving and extending their property. The project did not proceed as expected. There were delays with planning, and during the course of the works, structural issues emerged which required a reassessment of the build. Ultimately, a substantial part of the property had to be demolished mid-project. At this stage, the property was clearly uninhabitable. However, the local authority took a different view. They imposed double council tax on the basis that the property was empty, applying the standard premium used to discourage long-term vacant properties. Representations were made to explain the position. These were rejected. The authority maintained a rigid stance and would not accept that the condition of the property and the nature of the works justified relief. The charges continued to accrue. We were instructed to review the situation. A detailed and structured approach was taken, including assembling the appropriate evidence, reframing the basis of the claim, and engaging with the local authority in a more targeted way. The outcome was clear: Full council tax waiver achieved Over £10,000 recovered for the client Ongoing liability removed This is not an uncommon scenario. Local authorities will often apply standard rules without properly considering the specific circumstances of a construction project. Initial refusals are frequent, but they are not always correct. A properly prepared and presented case can materially change the outcome. Situations like this arise regularly on construction projects. Addressing them correctly can make a significant financial difference. Sunil K Radia The Building Guidance Partnership Telephone (020) 8076 3110 WhatsApp +44 7507 705376 www.theBGP.co.uk

Regulatory Compliance Oversights That Could Sink Your Construction Project

by Niket Kapur • 20 March 2026
Most homeowners focus on design, finishes and cost when undertaking a building project. Very few focus on compliance. That is where serious problems arise. This note sets out the key regulatory and risk areas that are frequently overlooked. These are not minor technicalities. They are issues that can expose you to financial loss, uninsured risk and legal liability. 1. Notifying Your Mortgage Lender If your property is subject to a mortgage, your lender has a legal charge over it. That property is their security. Most mortgage terms require you to notify the lender before carrying out structural works Some lenders require formal consent Failure to notify can place you in breach of your mortgage conditions This is often ignored. It should not be. 2. Insurance During Construction Standard household insurance is usually not valid during major renovation or structural works. Many policies specifically exclude properties under construction Continuing without appropriate cover can leave you completely exposed You should: Notify your existing insurer before works commence Arrange specialist renovation insurance where required Ensure cover includes fire, flood, theft, vandalism and public liability Do not assume you are covered. Check. 3. Contractor Insurance Is Not a Substitute Many homeowners assume the contractor’s insurance will protect them. That assumption is dangerous. You must verify: The level of cover is sufficient for the scale of the project The policy includes public liability, employer’s liability and contract works Cover extends to damage to neighbouring properties Liability includes injury to third parties, including trespassers Do not accept a certificate at face value. Review the detail. 4. VAT: Getting It Wrong Is Expensive VAT treatment in construction is complex but critical. New builds may qualify for 0 percent VAT Properties empty for two years or more may qualify for 5 percent VAT on renovation works Evidence of vacancy is essential and must be properly assembled Failure to structure this correctly can cost many thousands of pounds. 5. Council Tax on Uninhabitable Properties Where a property is genuinely uninhabitable, relief or exemption from council tax may be available. In practice: Applications are often rejected at first instance Local authorities do not always guide applicants through the correct route A structured and informed approach is required to secure the correct outcome We regularly assist clients in securing substantial savings, including backdated recoveries where appropriate. 6. Site Safety and Residual Liability Even when a contractor is in possession of the site, the homeowner can still carry risk. If someone is injured on site, including a passer-by or trespasser, liability may arise Simply appointing a contractor does not remove your exposure You should ensure: Proper site security is in place Risk assessments and method statements are being followed Insurance arrangements align with the actual risks on site This is not theoretical. Claims do arise in these circumstances. Final Thought These issues are rarely considered at the outset, yet they carry real consequences. Getting them right early avoids problems later. Contact us today so that we can review your arrangements.  Sunil K Radia The Building Guidance Partnership Telephone (020) 8076 3110 WhatsApp +44 7507 705376 www.theBGP.co.uk