Consumer Guide

Home building works.
Do it right.

Most problems with builders are entirely avoidable. This guide tells you everything you need to know — from getting quotes to staying protected when things go wrong.

37,000+
Home trade complaints to Citizens Advice per year
72%
Of building disputes involve no written contract*
53%
Of complaints: substandard work (CA 2024/25)
17%
Average saving from getting 3 quotes

Sources: Citizens Advice Consumer Service Jul 2024–Jun 2025 (37,000+ complaints; 53% substandard work). *Dispute/contract figure: consumer protection research. Saving estimate: Bundle IQ benchmarking.

The fundamentals
Four rules that prevent most problems
2️⃣

Always get it in writing

A verbal agreement is nearly unenforceable. Without a written contract, there's no agreed scope, no agreed price, no agreed timeline, and no recourse when things don't match what you expected.

3️⃣

Get at least three quotes

A single quote gives a builder no incentive to price competitively. Three quotes immediately gives you market context — you'll know within 20 minutes whether you're being overcharged.

4️⃣

Retain 5–10% until snagging is complete

Always hold back a retention payment until all defects have been identified and fixed. Once a builder is fully paid, their motivation to return and fix minor issues disappears sharply.

The most common scenario: A homeowner gets one quote, pays 50% upfront to "secure materials", the builder does 40% of the work, demands more money, and either does poor quality work or disappears. Without a contract, recovery is difficult. With IQ Protection, your money never leaves escrow until you confirm each stage is done.

Step 1
Before you approach any builder
The clearer your brief, the better your quotes — and the less room for dispute later. Do this work upfront.
1
1

Define the scope precisely

Write down exactly what you want done, room by room if needed. Include materials preferences, finishes, and anything that must be preserved. Vague briefs attract vague quotes — and every ambiguity becomes a potential dispute or "extra".

2
2

Know what you need permission for

Most extensions need planning permission. Most structural work needs building regulations approval. Work that doesn't comply is a legal liability and can prevent you selling your home. Check with your local authority before getting quotes.

3
3

Set a realistic budget

Add 15–20% contingency for unexpected issues — especially on older properties. If builders know your hard ceiling, they'll quote to it. Give a budget range, not a single number.

4
4

Understand who is responsible for what

In most cases, the builder is responsible for carrying out the work. You are responsible for ensuring planning and building regs are in order unless you've explicitly contracted those tasks to the builder.

Permitted development rights let you do certain works without planning permission — but the rules are specific about size, materials, and proximity to boundaries. The Planning Portal (planningportal.co.uk) has a free interactive guide. When in doubt, submit a Lawful Development Certificate application — it's cheap insurance.

Step 2
How to get quotes that are actually comparable
If every builder is quoting on a different scope, you can't compare them meaningfully. Get quotes on the same brief.
💡

IQ does this for you. Submit your requirement once. Bundle IQ sends the same brief to 3–6 vetted builders, collects their quotes in a structured format, and presents a side-by-side comparison with scores. You don't chase builders — they respond to you.

What a proper quote should include

Itemised breakdown of labour and materials
Not just a single total number — you need to see where the money goes
VAT status clearly stated
Registered builders charge VAT. Un-registered builders can't — if they quote £X "plus VAT" and aren't registered, that's a red flag
Start and completion date
Vague "we'll start in a few weeks" is not good enough
What's explicitly excluded
Good quotes list what's NOT included to prevent dispute later
How variations will be handled and priced
Changes to scope mid-project can double costs if not agreed in advance
Payment terms and schedule
Should show staged payments tied to progress milestones, not arbitrary dates
Insurance details
Public liability insurance (min £1m) and employer's liability if they have employees
References from comparable work
Recent jobs of similar size and type, verifiable by you

Comparing quotes side by side

Once you have three quotes, compare like for like — not just the headline number.

What to compareWhat to look forWatch out for
PriceWithin 10–15% of others is normalSignificantly cheapest quote — either scope is different or corners will be cut
Materials specNamed brands, grades, or standards"Materials as required" with no specification is a blank cheque
Labour breakdownClear hours and trades listedSingle "labour" line with no detail
TimelineSpecific start and end datesVague "approximately X weeks" with no start date
Payment scheduleStaged payments tied to milestones50%+ upfront, or weekly payments with no milestone linkage
ExclusionsClearly listed — e.g. "Decoration not included"No exclusions listed — scope disputes are almost guaranteed
Step 3
Red flags — walk away
These are the warning signs that experienced buyers recognise immediately. Any one of these should give you pause. Multiple red flags mean walk away.
🚩
Demands large upfront payment before starting. "I need 50% to buy the materials" is almost never legitimate. Established builders have supplier accounts. This is the single biggest predictor of problems.
🚩
Can only start immediately or "this week only". Pressure tactics around availability are designed to prevent you getting other quotes. Good builders are busy — they book in advance.
🚩
No written quote — only a verbal price. A verbal quote is not a contract and is worth very little in a dispute. If they won't put it in writing, they're leaving room to change the price later.
🚩
Wants cash payment with no receipt. Cash deals deprive you of any paper trail and may indicate the builder isn't declaring income. If something goes wrong, you have no proof of payment.
🚩
Knocks on your door cold. Unsolicited doorstep traders offering to fix your drive, roof, or guttering are disproportionately likely to be dishonest. Always seek out your own contractors.
🚩
Can't provide references or shows only photos. Photos can be taken anywhere. Real references mean previous clients you can call. If they won't provide names and numbers, ask why.
🚩
No company registration or only a mobile number. Check Companies House. A genuine limited company has a registered address and accounts on file. Sole traders should at least have a proper business address and be VAT registered if their turnover is above threshold.
🚩
Asks you to get the skip, scaffolding, or materials yourself. Occasional subcontracting is normal. Being asked to organise the basics suggests poor organisation — or that they intend to walk off once they've been paid.
🔍

IQ vets every supplier on the Bundle IQ platform. Company registration, insurance, trading history, and references are all verified before a builder can receive enquiries. You don't have to do this yourself.

Step 4
The contract — non-negotiable
A contract doesn't signal distrust — it signals professionalism. Any builder who refuses to sign a written contract is refusing accountability. That is your answer.

72% of building disputes involve no written contract. Without one, the scope is whatever each party remembers it being. The price is whatever they say they agreed. The timeline is irrelevant. You have almost no legal protection.

What your building contract must cover

Full description of the works — scope, materials, finishes
This is the definition of "job done". Everything must be written down.
Total contract price and what it includes
VAT-exclusive or inclusive. What's in, what's not.
Staged payment schedule tied to milestones
Payments triggered by completion of defined stages, not by dates.
Retention: 5–10% held back until snagging complete
Withheld for typically 3–6 months to cover defects that appear after completion.
Start date and expected completion date
Include what happens if they overrun — liquidated damages provision.
Variation procedure — how changes are agreed and priced
No verbal instructions. All changes in writing, signed by both parties, with price agreed before work starts.
Who is responsible for planning and building regulations
Make this explicit. Assume nothing.
What happens if the builder abandons the project
Right to terminate and recover additional cost of completion from a replacement.
Defects liability period — typically 12 months
Builder must return to fix defects that appear within this period at no cost.
Insurance requirements
Public liability, employer's liability, and who insures the works during construction.
📝

Bundle IQ's construction contract template covers all of this. It's pre-written, plain English, and takes 5 minutes to fill in. Both parties sign digitally. You don't need a solicitor for most domestic building work — but the contract must exist. Create your contract →

Step 5
How to structure payments safely
Payment structure is your single most powerful lever. Get this right and you are almost fully protected against non-delivery.
25–30%
Deposit on start
Only once work has visibly commenced on site. Never before a single tool has appeared.
60–65%
Stage payments
Released in 2–3 tranches as defined milestones are completed and inspected by you.
5–10%
Retention
Held for 3–6 months after completion. Released only when all snagging items are signed off.
🔒

With IQ Protection, all of this is automatic. You pay Bundle IQ, not the builder. We hold funds in escrow. You release each stage payment by tapping a button when you're satisfied. If you dispute a stage, funds stay held until resolved — at no cost to you.

Milestone examples for a kitchen extension

#MilestoneAcceptance criteria%
1Structural work completeWalls up, roof weathertight, steels in, building inspector sign-off30%
2First fix completeElectrics first fix, plumbing first fix, windows and doors in, plastering complete35%
3Second fix and practical completionKitchen fitted, electrics and plumbing second fix complete, decoration done, clean site30%
4Retention releaseAll snagging items from your list rectified, building regs completion certificate received5%

Never pay for a stage before inspecting the work yourself. Walk the site before releasing any payment. If something isn't right, say so in writing before paying. Once money leaves your account, your leverage disappears.

Step 6
During the build
Good project management prevents problems from becoming expensive. You don't need to be on site every day — but you do need to stay involved.
📸

Take photos throughout

Date-stamped photos of every stage of work, particularly before walls are boarded over. These document what was done and when — essential if defects appear later. Pay specific attention to pipe runs, electrical routes, and insulation.

📝

Put every change in writing

If you want something different from what's in the contract, agree the change, the price, and the impact on timeline in writing before it's done. A variation instruction should be signed by both parties.

🔍

Inspect before paying

Before releasing each milestone payment, walk the site with the contract scope in hand. Note anything that isn't complete or doesn't meet the specification. Raise issues before paying — not after.

💬

Keep communication in writing

Email or WhatsApp beats phone calls for anything important. If you have a conversation, follow it up in writing: "As we discussed, you agreed to X by Y date." This creates a record.

Building Regulations inspections: The inspector needs to sign off key stages. Know when they need to visit — typically at foundation, drainage, structural steels, first fix, and final completion. The builder should be arranging these, but check. Failing to get inspections can invalidate your building regs approval.

Step 7
When things go wrong
Even with the best preparation, problems happen. Here's what to do.

🚨 Builder has disappeared

If you used IQ Protection: Funds are still in escrow. Raise a dispute in your dashboard. IQ investigates and returns held funds. You then use the remainder to hire a replacement.

Without escrow: Send a formal letter before action to their registered address. If no response, Small Claims Court (up to £10,000) or County Court. Check if they're a member of a trade body with a complaint scheme.

🔨 Work is defective or substandard

First: Document everything — photos, measurements, written description of the defect.

Write formally requesting remediation within a reasonable time (14–21 days). If not done, get an independent assessment report. This becomes your evidence.

If using IQ Protection: Don't release the final milestone. Raise a dispute with the evidence.

💸 Builder demanding more money mid-project

Mid-project price increases are only valid if there's a written, signed variation order. If they're demanding more for work that's already in the contract scope, refuse politely but firmly in writing.

Reference your contract and the agreed scope. If they threaten to stop work, that itself may be a breach of contract.

📅 Significant overrun on timeline

If your contract has a completion date and a liquidated damages clause, you may be entitled to deduct a sum for each week of overrun.

Write formally noting the overrun and requesting a revised programme. Keep records of any additional costs you incur as a result of the delay (e.g. alternative accommodation, storage).

🛠 Building regulations issues discovered after completion

If work wasn't inspected and doesn't comply with building regulations, you may face enforcement action or difficulty selling. Get a structural engineer's report. A Regularisation Certificate application may resolve it — at extra cost.

If the builder was responsible for arranging inspections, they may be liable for the cost of regularisation.

⚖️ Formal resolution options

Mediation: RICS, CEDR, and RIBA all offer mediation services. Faster and cheaper than court.

Small Claims Court: Claims up to £10,000. You don't need a solicitor. Very effective for straightforward non-payment or abandonment cases.

Trading Standards: For serious cases involving fraud or deliberate mis-selling.

Trade body schemes: Federation of Master Builders, NHBC, and others have dispute resolution procedures.
Master checklist
Everything before you sign anything
Work through this before committing to any builder. Print it, save it, share it.

📋 Checking the builder

Verified company registration on Companies House
companieshouse.gov.uk — check they're active and have been trading for a reasonable period
Confirmed public liability insurance (min £1m) — seen the certificate
Called at least two references from similar jobs
Ask: Did they finish on time? Were there extra costs? Would you use them again?
Checked for reviews on Trustpilot, Which Trusted Traders, or Checkatrade
Confirmed they are VAT registered (if they've charged VAT)
vatcheck.co.uk — takes 30 seconds
No unsolicited cold-calling or doorstep approach

💰 Before paying anything

Received at least 3 written, itemised quotes
Contract signed by both parties before work starts
Payment schedule tied to milestones, not dates
Retention of at least 5% agreed and written into contract
Upfront deposit no more than 30% — and only once work has started
Payment method creates a paper trail (bank transfer, not cash)

📄 The contract itself

Full written scope of works included
Start date and completion date specified
Variation procedure defined (written sign-off required)
Defects liability period stated (minimum 12 months)
Termination rights for both parties included
Insurance requirements listed
📝 Build your contract now Get vetted quotes →

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