Building Without Proper Contracts
Paul Donnelly, Head of Construction at Blackstone Solicitors looks at the legal risks for homeowners and business owners in Cheshire
As a construction lawyer practising in Cheshire, I regularly see the same problem: people begin building projects without a proper written contract. Whether you are extending your family home in Wilmslow or fitting out new business premises in Crewe, relying on a handshake deal and a builder’s quote can be a recipe for disaster.
A contract is not just a piece of paper. It sets out responsibilities, fixes payment terms, defines quality standards and provides clear remedies if something goes wrong. For domestic projects, the JCT Homeowner Contract is a popular choice. For commercial clients, the JCT Minor Works or Intermediate forms are often more appropriate. Choosing the right contract at the outset can prevent disputes that otherwise spiral into adjudication or litigation.
Common Legal Issues
Payment Disputes
Under the Housing Grants, Construction and Regeneration Act 1996, strict rules apply to interim payments. Those provisions do not apply to residential occupiers but will do so if the contract so provides. If you fail to issue a valid payment notice or pay less notice on time, you will be required to pay the full sum claimed - even if the work is defective. Both homeowners and businesses regularly fall into this trap, often leading to costly adjudications.
Poor Workmanship or Unfinished Works
Whilst services should be carried out with reasonable care and skill and work carried out in a good and workmanlike manner, without a clear contract detailing specifications, performance obligations and a process for rectifying defects, proving a claim is far more difficult.
Health and Safety (CDM 2015)
Domestic clients’ health and safety obligations under the Construction (Design and Management) Regulations 2015 (CDM) are usually transferred to the contractor. For business projects, however, the client must actively appoint a Principal Designer and Principal Contractor and ensure compliance. Failing to document these responsibilities in the contract can result in enforcement action.
Boundary and Neighbour Disputes
Many home extensions fall under the Party Wall etc. Act 1996, particularly when building close to a neighbour’s property. Business projects face similar risks, especially when redeveloping tight plots or older buildings. Disputes can delay works, add surveyor costs or even result in injunctions.
Planning and Building Regulations
Homeowners may be able to rely on permitted development rights, but businesses often need full planning permission, change-of-use consent or listed building approval. Both must also secure Building Regulations sign-off. Without the correct approvals, sales, leases or refinancing can be held up indefinitely.
Practical Tips
Choose the right form: JCT Homeowner for private extensions; JCT Minor Works or Intermediate for business projects.
Fix payment terms clearly: Include dates, deadlines and valuation methods.
Define quality standards: Use detailed specifications or an employer’s requirements document.
Allocate CDM roles: Name the Principal Designer and Principal Contractor in writing.
Check boundary issues early: Serve Party Wall notices where required.
Secure consents before work starts: Planning and Building Regulations obligations must be confirmed in writing.
Keep records: Variations, site progress and insurance details should be documented. Your mantra should be “evidence, evidence, evidence”.
Final Word
Whether you are a homeowner in Cheshire extending your property or a business owner constructing or altering premises, the risks of building without a proper contract are serious. The modest investment in legal advice at the outset is far cheaper than dealing with disputes, delays or enforcement later.
Speak to an Expert
Paul Donnelly, specialises in helping both homeowners and business clients protect their investment.
0161 929 0121
Hungry for more?
Read up on the latest news, delicious eats, travel treats and seasonal style trends in FEATURES, or browse a curated selection of our FEATURED PRODUCTS, meander through our guide to the finest things to do in Cheshire and beyond in WHATS ON or partake in our COMPETITIONS.
About The CHESHIRE Magazine
We are the definitive guide to luxury lifestyle in the North West. Latest news, delicious eats, travel treats and seasonal style trends. The Cheshire Magazine is the largest luxury lifestyle title for the North West of England, dropping directly through the letterboxes of VIP subscribers from the Wirral to Greater Manchester plus all the villages and towns in between and digitally available as a subscription in print and digital on issuu.com worldwide. We specialise in connecting luxury brands to likeminded consumers.
If you are interested on how you can partner with The CHESHIRE Magazine, read more about us. Or get in touch to find out more about marketing, featuring or partnering with the Cheshire Magazine in print or online.
