Building disputes: Advice for builders

Building disputes can occur for a number of reasons. In this guide for builders, our experienced and specialist team looks into what can be done to help resolve disputes in an effective and efficient manner.

Whether you are contracted to complete an extension, loft conversion, landscaping, internal structural alterations or the refurbishment of residential or commercial premises, this guide summarises how we can support builders to resolve disputes, manage risk and protect your business’ reputation.

Building projects can be complex, time sensitive and prone to changes. Although most projects can conclude smoothly, it is not uncommon for issues to arise in respect of poor workmanship, delays, costs or scope of work.

This short guide outlines the most common causes of building disputes, your legal rights and responsibilities as a builder, as well as the practical steps you can take to prevent or resolve conflict efficiently.

What can I do if my customer raises an issue with building works?

In our experience, it is always best to maintain a good line of communication with the customer and to understand the nature of the issues raised. The most common issues a customer can raise are in relation to:

• The quality or standard of workmanship and allegations of defective or incomplete work;
• Delays or failure to complete the work;
• Disputes about the agreed scope of work;
• Non-payment or underpayment;
• Misunderstandings arising from unclear or informal contracts.

Identifying the category of the issues at hand is likely to facilitate a more prompt and efficient resolution. Should you be able to reach an agreement to settle the matter, this may prevent it from escalating into a dispute and avoid the need for litigation.

Common issues that cause building disputes & your obligations as a builder

Poor workmanship & incomplete works

Where a customer raises issues with the quality and standard or workmanship or incomplete work, legislative provisions – such as the Supply of Good and Services Act 1982 and the Consumer Rights Act 2015 – impose duties on builders to ensure that:

• The work is carried out with reasonable care and skill;
• Materials are of satisfactory quality and fit for purpose;
• The work is completed within a reasonable time if not specified.

In the first instance, it is advisable for builders to engage constructively with the customer, carefully consider the concerns raised, and make genuine efforts to resolve the matter amicably and without delay, ideally through remedial works or a mutually agreed solution to avoid escalation into a formal dispute.

Where resolution cannot be achieved through direct engagement, it is prudent to consider involving an expert to prepare a report identifying any defects or shortcomings in the work, specifying the remedial measures required. Even if a settlement is not reached, this will often assist with narrowing the issues.

What happens if the customer raises issues with the agreed scope of works?

While clear written contracts and documented variations are the most effective means of protecting your position, we recognise that it is common for agreements to be made via email, WhatsApp or text message. These forms of communication may constitute written agreements, however – in the absence of a formal contract – it can be significantly more difficult to determine the precise terms agreed between the parties.

A clear, written contract with a well-defined scope of works is essential to protect your position and reduce the risk of building disputes. Disagreements often arise when the scope is vague, undocumented, or altered without written confirmation.

To avoid this, ensure the scope is detailed, signed by both parties and includes terms for variations, payments, timelines and dispute resolution. Confirm all changes in writing before proceeding with additional work and retain all correspondence. A properly drafted contract sets clear expectations and provides a strong foundation if issues arise.

Non-payment & underpayment

If a customer fails to make payment as agreed and the builder has completed the works, strictly speaking, the customer is in breach of contract, and the builder is entitled to pursue payment. The same applies in respect of underpayments, and it is often the case that customers may refuse to make payment or underpay on the basis that they have identified issues in relation to poor workmanship and the quality of the work.

In our experience, there is a clear distinction between defects and snagging issues. Defects refer to significant faults in materials or workmanship that breach the contract or fail to meet required standards. Snagging, by contrast, typically involves minor, cosmetic or finishing issues. While defects may give rise to legal claims for breach of contract or negligence, snagging items are usually expected to be rectified as part of the completion process.

While customers may be justified in withholding payment where there are genuine and significant defects, the distinctions between defects and snagging could be significant. It is important to seek legal advice to help avoid escalation.

Delays & extensions of time

Delays are a common cause of tension and disputes in building projects, but many can be avoided through clear communication and proper documentation. We recommend that builders notify their clients in writing as soon as a delay becomes apparent and setting out the impact on completion.

The right way to stop work

It can be tempting to walk away from a project when a customer refuses to pay, changes their mind or the relationship breaks down. However, simply abandoning a project without following the correct process can put you in breach of contract and expose you to claims for unfinished work. Before taking that step, we recommend that you review the contract to check your rights and seek legal advice to ensure that you lawfully bring the contract to an end.

How can Willans help?

Most building disputes arise from unclear expectations, payment delays or disagreements over the quality or extent of work. We recommend good communication, clear written agreements and accurate records of what was done and when.

Taking early advice where a customer raises complaints can save time and costs, as well as disruption to your business. Our team can assist with resolving disputes quickly and can help to put practical steps in place to prevent similar issues arising in future.

Our Legal 500 and Chambers-rated litigation & dispute resolution team can help resolve a wide range of disputes, including those related to building projects.