Cancelling Builders Contracts

I Have Arranged For A Builder To Do Some Work But Changed My Mind. Can I cancel a builders contract?

Your rights in relation to cancelling builders contracts to undertake work on your home depend on several factors, including where the contract with the builder was made and whether or not they have already started work on the project. Understanding the nature of your rights, and how to properly exercise them, is crucial in ensuring you retain the right to cancel a builders contract and do not inadvertently place yourself in breach of contract.

Our expert building disputes solicitors regularly assist homeowners in cancelling a builder’s contract. Our advice is clear, straightforward, and focussed on effectively cancelling the contract as quickly as possible, while minimising any liability on your part.

Check your contract: To understand your right to cancelling building contracts, you should first read your agreement document. This is to see what it says about cancellation. If it fails to address this point then look at your statutory rights.

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.

Can I cancel the contract with my builder?

Sometimes, homeowners change their minds about an agreement they have made with a builder. They may have decided to move to a new house rather than renovate, be experiencing cash flow issues, or have simply found a better, cheaper tradesperson. The homeowner’s rights when cancelling a builder’s contract vary depending on several factors, as we explain below.

When you agree with a builder that they will carry out work on your home, you enter into a contract with them, even if nothing is written down. The first port of call when considering your cancellation rights will always be the terms of that contract. Our building disputes solicitors will review the relevant contractual terms and advise on how they impact your desire to cancel the job.

In certain circumstances, you may have additional statutory cancellation rights under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR).

Cancelling a building contract during the ‘cooling off period’

Your contract with the builder may allow for a cooling off period, during which you can cancel the job without consequences. Even if it does not, you may have a statutory right to cancel under the CCR within the applicable cancellation period, provided the agreement meets the following criteria:

• It was concluded ‘off premises’, meaning not at the builder’s workplace. Many building contracts are completed at the homeowner’s property, so satisfy this requirement; or
• It was concluded at a distance, via the internet, for example.

Crucially, these cancellation rights do not apply to new-build properties or urgent work. Further, if you have ordered bespoke goods, such as a tailor-made kitchen, you may not benefit from the statutory cooling off period.

The usual cooling off period for residential building contracts is 14 days. However, builders are legally obliged to provide you with specific information regarding your right to cancel; if they didn’t, the cooling off period may be extended by up to 12 months. Our building dispute resolution solicitors will review the terms of your contract and any other relevant documentation to ascertain whether the builder provided the requisite cancellation information.

You can cancel a builder’s contract within the cooling off period for any reason, or no reason. You are entitled to all of your money back, unless you specifically asked the builder to start work before the cooling-off period had expired.

The Consequences Of Failing To Comply With The CCR Requirement Are Severe. In Particular:

• The builder or contractor may be guilty of a criminal offence and potential fine.
• The homeowner may cancel the contract at any time up to one year and 14 days after the contract was entered into, without incurring any liability; and
• The builder or contractor must reimburse all payments received from the homeowner.

Construction disputes can become expensive and for certain matters Altion Law can offer a fast and fixed fee initial consultation to review your legal position and provide advice on your options and legal rights, before you have to commit to any large legal costs.

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.

Cancelling builders contract before work starts

If the builder has not yet started work on your project and you do not have a contract, you are under no obligation to proceed. However, since a contract does not need to be in writing to be effective, if you have reached the stage of being concerned about cancellation rights, chances are that you have a legally binding contract with your builder.

If you have a contract with your builder, cancelling it may place you in breach, unless the agreement allows you to do so. If it does, you must follow the procedure for cancellation detailed in the contract, which may involve paying a cancellation charge.

Cancelling a builder’s contract after work has started

If you want to cancel your builder’s contract after they have started work, you will need to negotiate terms with them. You will likely be asked to make good any losses sustained by the builder as a result of the cancellation. If, for example, the builder loses money because they do not have a replacement job to start, you may be liable for the builder’s lost profits. If you paid a deposit, the builder would likely retain all or some of it to cover the costs caused by your cancellation.

Having expert negotiators, like our building disputes team, on your side when cancelling a builder’s contract after work has started can be invaluable. Our lawyers will do all they can to extricate you from the contract as quickly as possible, and on the best possible terms.

What Statutory Rights Do You Have For Supply Of Service Contracts Under The Consumer Rights Act 2015?

The Consumer Rights Act 2015 (CRA 2015) consolidated existing consumer protection law and given a number of new rights and remedies which came into force on 1 October 2015. It made an impact on the residential constructions.  It is vitally important that the builders or other contractors, when dealing with homeowners, will have to make sure that their pre-contract information and business practices comply with various requirements.

The CRA 2015 replaces the Sale of Goods Act, the Unfair Terms in Consumer Contracts Regulations and the Supply of Goods and Services Act. All of these have affected the builders and their contractual arrangements with the homeowners.

Altion Law are specialists at advising and representing parties in a Cancellation Dispute relating to a building project. Construction disputes can become expensive and for certain matters such as advice on cancellation rights Altion Law can offer a fast and fixed fee initial consultation to review your legal position and provide advice on your options and legal rights, before you have to commit to any large legal costs.

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.