Why Bob the Builder is Almost Unemployed
‘Can we fix it? Yes we can,’ cried Bob, Scoop and the gang. They never turned any job down, regardless of how big it was.
There was a time when many a building project was agreed on a handshake based on a price roughly scribbled in pencil on a scrap of paper, scavenged from the cluttered dashboard of a van held together by rust.
Hands up – that was a little heavy on the stereotypes. But there is always some truth in even the harshest of cliches!
The point is, not so long ago, one and two man bands, who seemed to cover almost every trade going, could find themselves building an extension, conversion or sometimes an entire new build house. And the one thing you could almost certainly guarantee was at some point there would’ve been a conversation along the lines of: ‘How much for cash?’
Compared to the industry now, the above is an almost Jurassic era. Almost. The reality is, some of these dinosaurs are not completely extinct and are still trying to ply their trade this way. They shouldn’t be, but it doesn’t stop them trying.
The world has turned and with good reason. There are so many more hoops for reputable building firms to go through. Compliance is a major part of the modern building industry’s offering. Granted, they may only look like small badges and emblems at the bottom of websites or quotes. But compliance is the difference between the end client being protected and taking over the house or space of their dreams or being left with a site that looks more like they’re opening a paintball park.
Not to mention ensuring the protection, health and safety of everyone entering and working on the site.
Prior to any final engagement, an end client should be insisting upon having:
- Being presented with the terms and conditions of their preferred construction company
- Proof of Employers and Public Liability Insurance, as well as All Risk Insurance
- A fully itemised scope of works
- A fully broken out quotation against that scope of works
- An agreed payment schedule to deliver that scope
- Items or elements that are not included within the quotation should be clearly highlighted and verbally referenced
- A timeline for delivering the project
- An understanding of the potential areas for variation or delay
- A commitment to a general code of conduct by the building team whilst on site and within the immediate environment.
- Proof of the firm’s health and safety record
- An appreciation of what will ultimately be included within the scope for ‘snagging’, so that their expectations are well managed.
HMRC rules have also changed relatively recently in that the lead contractor on a project now has to pay the VAT on behalf of subcontractors, in advance, quarterly. If they don’t, they may well be shut down, part way through a client project. If they haven’t managed their finances well enough, their cashflow may run out, resulting in the same scenario for the client. Hence, it’s also critical that any client ensures their building partner is extremely financially stable and has a track record of delivering similar projects.
A few scribbled figures on the inside of a torn off, cardboard, screwbox lid carries none of the above assurances. That pencil figure will almost certainly be smaller than any other quote a client would receive. If cash is then handed over to meet that pencilled figure, there is no receipt or proof of transfer. Both of which means the client would be operating in the absence of any contract and therefore any protection.
Thankfully, it’s becoming increasingly harder to operate this way but whilst these practices are far from rife, unbelievably, we still come across clients looking for a way out of having to open South Manchester and Cheshire’s latest paintball park.