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Builder contract: what to include, with a simple template

A builder contract should put the scope of work, the fixed price, the payment stages, the start and finish dates, what is included and excluded, how changes are priced, and the guarantee in writing, signed by both sides. Even a one-page written agreement is far safer than a verbal deal.

By Stephen Evans · reviewed June 2026

Why put it in writing?

Most disputes between homeowners and builders come down to one thing: the two sides remembered the deal differently. A written contract fixes the price, the work and the timetable so there is nothing to argue about, and it gives you something to fall back on if the job goes wrong. It protects the builder too, which is why good ones welcome it.

What a builder contract should include

Whether you use a formal contract or a simple letter, make sure it covers:

The names and addresses of both you and the builder
A clear description of the work to be done
The fixed total price, and what it includes and excludes
The payment schedule: any deposit, stage payments against work done, and a final payment held back until snagging is clear
Start and expected completion dates
How extras and changes are quoted and agreed, in writing, before they happen
Materials and the specification to be used
Who handles waste, skips and parking
The builder's public liability insurance
Any guarantee or warranty, and how long it lasts

A simple builder contract template

You can adapt the plain-English template below. It is not legal advice, but a clear written agreement like this is far better than a handshake. Copy it, fill in the brackets, and both sign and date it.

BUILDING WORK AGREEMENT

Between: [your name and address] ("the customer")
And: [builder/company name, address and company number] ("the builder")

1. The work. The builder will carry out the following work at [property address]:
   [describe the work and the specification]

2. Price. The fixed total price for the work is £[amount], including [materials/VAT as agreed]. This price excludes: [list anything not included].

3. Payments. The customer will pay:
   - Deposit of £[amount] on signing (materials only)
   - £[amount] on completion of [stage]
   - Final £[amount] within [x] days of completion, once the agreed snagging list is cleared

4. Dates. Work will start on [date] and is expected to finish by [date].

5. Changes. Any extra work or change to the above will be quoted and agreed in writing before it is carried out.

6. Insurance. The builder holds public liability insurance of £[amount].

7. Guarantee. The builder guarantees the work for [period] from completion.

Signed (customer): ____________________  Date: __________
Signed (builder):  ____________________  Date: __________

Before you sign

Read it through, and get it agreed in writing before any work starts, not halfway through. Never pay a large deposit, keep every change in writing, and hold back the final payment until the job and the snagging list are genuinely finished.

Common questions

Do I legally need a written contract with a builder?

No, a verbal agreement can be binding, but it is very hard to prove. A written contract is strongly advised because it makes the price, scope and payments clear and is far easier to enforce if there is a dispute.

What deposit is normal for a builder?

A modest deposit to cover materials is common on larger jobs. Avoid paying a large sum up front. The safest approach is stage payments against work completed, with the final payment held back until snagging is done.

What is retention on a building job?

Retention means holding back a small part of the final payment (for example five percent) until the snagging list is cleared. Agreeing it in the contract gives the builder a reason to come back and finish every last detail.

These are independent guide prices based on typical UK jobs in 2026. Your actual cost depends on your property, spec, access and where you live. Always get at least three written quotes before committing.