Few investments in life are more worthwhile or more profitable than building. Even small alterations or additions to one’s home - not to mention a holiday house, shop or workshop - will usually grow in value far more than what the builder was originally paid for the work. 

He says that 90% of payment problems experienced by contractors and owners are due to a contract not being signed.

“To get the maximum benefit from your investment you should not only choose your contractor wisely, but also enter into a formal contract before beginning the works,” says Rob Johnson, Executive Director of the Master Builders Association of the Western Cape (MBAWC). 

He says that 90% of payment problems experienced by contractors and owners are due to a contract not being signed. “Often the urgency and excitement to start the building work, normally after protracted negotiations, results in the administrative documentation being ignored by all parties.” 

In addition, Johnson says people don’t think of signing a contract when the builder is a friend, relation or acquaintance as they believe that the person will not let them down, adding that some also seem to think that a contract is unnecessary when it comes to smaller jobs.  

However, disputes usually arise around the time that the last payments are due to the contractor, he says. “In most cases the owner feels that the contractor has not complied with discussions held prior to the contract starting. 

Alternatively, Johnson says the contractor becomes aggrieved after non-payment of requested extra’s and variations over and above the originally priced scope of work. “All because a suitable contract, containing procedures for dealing with disputes, was not put in place from the very beginning.” 

“Be proactive and insist on having a building contract that has been approved by the Master Builders Association in your region and by other recognised professional bodies.”    

Contract documents as well as advice on the correct documentation for specific contracts, are available from MBAWC’s offices in Rondebosch. “The cost of a document is a small price to pay for keeping your investment and your relationship with the contractor safe,” says Johnson. 

Readers' Comments Have a comment about this article? Email us now.