FMB CONTRACTS
We welcome feedback on the contracts as they remain one of our most used and highly valued member services. throughout the contract, and pop-out notes to help you fill in the fields you need to complete. cancellations – cancellation form, if the client wants to exercise their legal right to cancel within 14 days; and guidance – guidance notes regulations, party walls, fees and documents? It includes a requirement for additional insurance if the builder takes on design responsibilities; changes – why circumstances may change and how it should be handled, including timescales or prices; health and safety – both parties’ obligations, and whether Construction Design and Management (CDM) Regulations apply; builder’s right to end the contract – when this applies and how; disputes and differences – what to do if these arise, starting with an amicable meeting to understand each other’s position; client’s main obligations – to pay for the work; risk management – is an insurance-backed guarantee in place? How long will the builder make good on any defects? Who is responsible for losses or damage, and who should insure for what? permissions and documents – who is responsible for what in relation to design, planning and building
Reasons for contract changes The FMB contracts have changed because of the introduction of the Building Safety Act (BSA). The contracts have gone through a rigorous process to make sure they are up to date with the new legislation. The Building Safety Act Throughout the contracts we refer to the Building Safety Laws (BSL) because the Building Safety Act does not operate in isolation and is linked to a range of other sources of law. The builder’s obligations: sets out the builders’ duties and obligations as Contractor and, where applicable, Principal Contractor, in accordance with BSL; requires confirmation as to whether the builder is to, or may, carry out design work and, if so, sets out their duties and obligations as Designer or Principal Designer, in accordance with BSL; requires the builder to confirm their competence to carry out work in accordance with Building Regulations and fulfil the duties of contractor, and, where applicable, designer, as required by BSL; previously required an individual to be named as the dutyholder under CDM, and this now extends to the appointment of dutyholders under BSL and explains the consequences if no appointments are made; and sets out need for a 15-year new build warranty when the project is a new home (no insurers offer this product but you should still add a note). The client’s obligations: in accordance with BSL and notes what is to be fulfilled by the builder if the client is a domestic client. The FMB contracts : stipulate BSL will apply to the work, and directs users to Government guidance on the legislation; must not be used for projects involving higher-risk buildings as defined in BSL; and refer to the limitation period as a contractual limitation period, because alternative, extended limitation periods apply under BSL in relation to certain claims and regulatory matters.
take, with an FMB contract including a timeline to demonstrate to clients the impact of delays or changes during the work; payments – how often the client will be invoiced, deadlines, penalties for late payments and a schedule for stage payments; practicalities – does the builder have access to water, electricity, storage, toilets? Will the client be living in the property during the work; materials and goods – acceptable standards and clarification on who owns goods delivered to site but not yet paid for; builder’s main obligations – to work with reasonable skill and care, and comply with building regulations;
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Master Builder
www.fmb.org.uk
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