Oral and written contracts

Whilst, strictly, an oral agreement is as binding as a written contract, dispute is more likely and proof more difficult where the paperwork is deficient or non-existent. There is often merit in the old saw: ‘an oral contract is worth the paper it is written on’.

Many builders are far keener to start on site than they are to prepare paperwork. This is frequently true of domestic projects where householders, lacking prior experience in building work and unassisted by qualified professionals, are seduced by the self-assured approach characteristic of many jobbing builders. It is easy to be swept along by builders’ general relaxed air of confidence into not worrying over the unknowns of building work. It is, after all, reassuringly routine ‘bread and butter work’ to builders while they are talking the job in.

Where householders seek the formalities of standard written contracts, they are likely to be assured that ‘no one else asks for that’ and to be solemnly advised ‘that contract stuff makes the job cost more’.

Then the unexpected occurs and causes delays, unforeseen costs and defects – with resulting dissatisfaction and dispute.

Fixed-Price Building Contracts

It is a common desire for clients to fix in advance the cost, quality and scope of a building project.

If complete certainty is required, a simple lump-sum agreement may be appropriate, but most standard forms are unsuitable as they provide mechanisms for revaluing the payments due. Before they enter into a building contract, it is wise to ensure employers fully understand the scope for costs to vary.

Benefits of alternative dispute resolution

When used successfully, ADR may be quick, cost effective and preserve confidentiality. All disputes, whether in difficult negotiations or full-scale litigation, can become a drain on resources – sapping money, time and focus. Generally, with alternative dispute resolution, the parties remain in control. If no settlement is reached, they retain their legal rights. For these benefits to be achieved, at the commencement of alternative dispute resolution both sides must have a genuine interest in seeing an end to the dispute or in re-starting effective negotiations.

The incidence of different types of defects

In the most general sense, a satisfactory building is one which is where it is needed, fits appropriately into its surroundings, and provides adequate space and facilities, protected from adverse weather and other undesirable external conditions. Since this protection cannot readily be achieved with short-lived structures, buildings typically outlast many other modern products, and, if built so that they can be adapted to changing requirements and easily repaired, can give satisfactory service for a long time.

Much can be learnt from the condition of the existing building stock about what mostly causes dissatisfaction after completion.

Faulty materials

Materials may give rise to building failures for three reasons:
• Inappropriate use
• Inherent faults
• Deterioration

The first of these is more likely to provide the basis for a claim for poor design than for faulty materials. The second is usually evidence of a materials failure. The third may not indicate a fault at all but, where it does, it may fall under either of the preceding categories.

Designing for Movement

One characteristic of most common building materials is that they move, both in response to directly applied loads and in sympathy with changes in ambient moisture and temperature levels. Designing for this means allowing buildings to be essentially flexible, and accommodating less flexible or brittle materials – such as glass – by suitable provision for differential movements and detailing to prevent this becoming a problem. Whilst seemingly a small issue, taking full account of this when designing fundamentally changes the way one thinks about building, especially in combination with the issue of ‘breathability’. In this, much can be learnt from traditional detailing.

Setting it in stone

Once upon a time a man built a hut. He employed no architect, hired no builder and entered into no contracts. If it worked, he was happy – if not, he fixed it.

With industrialisation construction becomes an enterprise to be procured by clients who do not themselves build and may not occupy the completed buildings. They may have to borrow to finance and, in some cases, sell projects on concepts and promises long before they are built. To fulfil their undertakings, clients draw from the building trades and professions to form project teams. These teams will be bound by contract, regulated by statute and judged by the written authorities found in ever-evolving codes and standards. This brings with it scope for misunderstanding and sometimes disputes.