When you work with builders, you are at risk of disputes arising, particularly if work is left incomplete or below an acceptable standard.
Many people may worry that if an issue arises and there is no written contract in place, they may have no legal options.
However, the absence of formal paperwork does not automatically prevent you from bringing a claim.
Our Head of Construction Law, Adam Davis, explains your rights when faced with a construction dispute without a contract.
What counts as a contract?
Despite common belief, a contract does not have to be in writing to be legally binding.
Verbal agreements, agreements partly in writing and by the conduct of the parties can still be enforceable if certain elements are present.
So long as the essential elements of a contract exist, which includes matters such as an agreement to carry out work, payment or consideration and an intention to create legal relations, then a contract can be formed.
Courts are becoming increasingly more inclined to uphold informal messages as a legally binding contract if the essential terms are agreed upon.
This was proven in the Jaevee Homes Ltd v Fincham case, where WhatsApp messages were found to be evidence of a legally binding agreement.
The court agreed that the establishment of the project’s fee, work scope and payment terms was sufficient to make it a valid contract despite being informally arranged.
If you have instructed builders to complete work for an agreed price, either verbally or via informal messages, then this may count as a contract.
Evidence such as emails, text messages, invoices, bank transfers or witness accounts can help demonstrate what was agreed and support the existence of a contract.
While not having a written contract can create uncertainty around the specifics of the work, timing and price, it does not mean there is no legal relationship at all.
How are your rights protected?
If you hired a builder as a consumer (not for business purposes), then the Consumer Rights Act 2015 applies.
This requires building work to be carried out with reasonable care and skill, within a reasonable time and for a reasonable price if none was agreed.
These rights apply regardless of whether the contract is written or verbal.
For work involving the construction, conversion or extension of a dwelling, the Defective Premises Act 1972 may also apply.
This imposes a duty on builders to ensure work is carried out properly and that the property is fit to live in. This duty can also be extended to future owners of the property.
A claim may also be brought in negligence if poor workmanship has caused you loss or damage.
What should you do if a dispute arises?
If problems do arise, it is important to act quickly and prepare all relevant evidence, including photographs of the work, payment records, correspondence and any expert reports.
Where possible, an independent surveyor’s report can be crucial to prove defects or substandard workmanship.
It is also important to be mindful of time limits, as the Limitation Act 1980 sets out a six-year time limit for most breach of contract and negligence claims, albeit there are some exceptions.
Delays can make disputes harder to resolve and evidence more difficult to obtain, so seeking legal support early on is crucial.
How can we support you?
While written contracts offer clarity, the lack of one does not leave you without protection and you can still hold builders accountable when work goes wrong.
Our expert team can help assess your claim and understand the right legal route for you.
We can assist with correspondence, negotiation, dispute resolution and court proceedings, if necessary.
Early legal advice can prevent disputes from escalating and improve the prospects of achieving a cost-effective resolution.
To learn more about how to protect your rights and make a claim, contact our Construction Law team today.
