How to Write Terms and Conditions for Builders

Terms and conditions are the boring bit of running a building business that nobody wants to deal with. Until something goes wrong. Then they become the most important document you have. Proper T&Cs protect you from scope creep, late payment, unreasonable customer demands, and disputes that could otherwise cost you thousands.

You do not need a solicitor to write basic terms and conditions (although having one review them is advisable for larger businesses). This guide covers what to include, in plain English, so you can create T&Cs that are fair, enforceable, and actually protect your business.

Why You Need Terms and Conditions

Without written T&Cs, disagreements default to what is "reasonable" under general contract law. The problem is that your idea of reasonable and the customer's idea of reasonable are often very different. Written terms remove ambiguity and give both parties clear expectations.

T&Cs also demonstrate professionalism. Customers who see proper terms on your quote know they are dealing with a serious business, not a cash-in-hand cowboy. This builds confidence and helps you win more work.

Section by Section Guide

1. Definitions

Start by defining key terms: "the Contractor" (you), "the Client" (the customer), "the Works" (the agreed scope), "the Contract" (the quote plus these terms). This prevents arguments about who owes what to whom.

2. Scope of work

Reference your quote as the detailed scope. State that the Works are limited to what is described in the quote, and any additional work will be subject to a separate agreement. This is your protection against scope creep.

3. Price and payment

State the total price, whether it includes or excludes VAT, and your payment schedule. Common terms include:

• Deposit of [X] percent due on acceptance
• Stage payments at agreed milestones (describe what constitutes each milestone)
• Final balance due within [7/14] days of completion
• Accepted payment methods
• Interest charged on late payments (typically 2 to 4 percent per month)

For more on payment terms, read our late payment guide.

4. Variations

This is crucial. State that any changes to the agreed scope must be agreed in writing (email is fine) and will be priced separately. Many disputes arise because the customer asked for "just a small change" verbally, which turned out to cost the builder significant time and money. A variation clause protects you.

5. Programme and delays

State your estimated start date and duration, but clarify that these are estimates, not guarantees. List factors that may cause delays: weather (for external work), material supply issues, access restrictions, additional work discovered during the project, and delays caused by the client or other trades.

6. Access and site conditions

State that the client must provide reasonable access to the site during working hours. Specify your normal working hours (typically 8am to 5pm, Monday to Friday). State that the client is responsible for clearing the work area (moving furniture, etc.) unless otherwise agreed.

7. Materials

Specify who is supplying materials. If you are supplying them, note that you will use materials of appropriate quality but may substitute equivalent products if specific items are unavailable. If the client is supplying materials, state that you are not responsible for the quality or suitability of client-supplied materials.

8. Warranties and guarantees

Offer a workmanship warranty, typically 12 months from completion. State what the warranty covers (defects in workmanship) and what it does not cover (normal wear and tear, damage caused by the client, defects in materials not supplied by you). Materials are typically covered by the manufacturer's warranty.

9. Insurance

State that you hold public liability insurance and provide the level of cover and policy number. This gives the client confidence and demonstrates professionalism. See our insurance guide for more on what insurance you need.

10. Cancellation

Specify what happens if the client cancels after accepting the quote. Reasonable terms include: the deposit is non-refundable, and the client is liable for the cost of materials already ordered and work already carried out.

Under the Consumer Rights Act 2015, domestic customers who hire you at their home have a 14-day cooling-off period if you did not visit the property before providing the quote. If you visited the property (which you should for any construction work), this cooling-off period does not apply.

11. Dispute resolution

State that disputes should first be resolved through direct discussion. If that fails, mediation through an independent mediator. If mediation fails, the matter will be resolved through the courts of England and Wales (or Scotland, as applicable).

12. Limitation of liability

State that your total liability for any claim is limited to the contract value or your insurance cover, whichever is less. This prevents disproportionate claims. However, you cannot exclude liability for death or personal injury caused by negligence.

Keeping Your T&Cs Enforceable

• Write in plain English. Jargon-filled legal language that the customer cannot understand may be challenged as unfair.
• Be fair. Under the Consumer Rights Act, terms that are significantly one-sided may be deemed unfair and unenforceable.
• Get written acceptance. The customer should sign your quote, which includes or references your T&Cs. This creates a binding agreement.
• Be consistent. Use the same T&Cs for every job. Tailoring terms for specific customers creates inconsistency and potential legal issues.

Include your terms and conditions on every quote you send. QuoteSmith lets you attach your T&Cs to professional PDF quotes automatically, so they are always included.

Frequently Asked Questions

Do terms and conditions have to be written by a solicitor?

No, you can write them yourself. This guide gives you everything you need for basic T&Cs. However, having a solicitor review them once (typically 200 to 500) gives you confidence that they are legally sound and enforceable.

Can I copy terms and conditions from another business?

You can use other T&Cs as inspiration, but copying them word-for-word is not advisable. Their terms may not be appropriate for your specific business, and they may contain errors or unfair terms. Write your own based on the structure above.

What if a customer refuses to agree to my terms?

That is their right, and it is your right to decline the job. Do not work without agreed terms. It is better to walk away from a job than to do significant work with no contractual protection.

Are verbal agreements enforceable?

Verbal contracts are technically enforceable in England and Wales, but they are extremely difficult to prove. Always get agreements in writing. Even a text message or email is better than a verbal agreement.