Value for Money & Fair Pricing
Value for Money and Fair Pricing are frequently used terms to consider the value derived from a purchase. It should be viewed not only on the minimum purchase price but also on the effectiveness and efficiency of the purchase. A simple exercise would be to consider the cost of your project i.e. £18,000 and the price of our “Hand Over” package at just £288.00 as a percentage it is just 1.60% of the total budget.
Edit the “open areas” of the agreement to suit your project. Email or print as many as you like.
Clearly define the project and work involved, your shortlisted contractors all issue a “Quotation Schedule” which prices the project “room by room”. This allows you to see the cost of materials and labour charge/rates. Remember an Estimate is a “rough guess” of costs a “Quotation” is legally binding.
Most projects do not require large initial deposits, this is because most projects begin by knocking down walls or digging foundations etc. Once you select your contractor after accepting their signed “Quotation Schedule” it is important to agree weekly payment terms (subject to the size and scale of the project). The payment terms should linked to the completion of works during that week. In the event the contractor does not complete the committed to works – discussions need to held before payment is released to understand the reasons why.
In the event that you wish to change something material to the project it is a fair assumption that this may take additional time and incur additional costs. This should be discussed and agreed at the time, so each party has an understanding of what is required of them. This can be done either by “adding” to the Building Agreement by an Addendum or restructuring the Building Agreement with an “Amendment Agreement”.
In the event that the contractor falls behind the agreed building schedule, you can issue an “Default” letter as a reminder to catch up and explain the reasons why the project is running slow or stopped. If after a reasonable period the contractor does not catch up on the project or should fall further behind, then a “Termination Letter” can be issued. To end the relationship with the contractor