The Federation of Master Builders (FMB) have announced an update to their builder contract templates to reflect the changes made by the Building Safety Act 2022
The FMB builder contract templates are designed for builders and homeowners alike to be able to read and understand, providing a free alternative (for FMB members) where many similar contracts may cost much more.
The changes made to the templates reflect FMB research findings that not only has nearly £15bn been lost to cowboy builders, but many homeowners are not familiar with their legal responsibilities under the Building Safety Act 2022.
The contracts help both parties understand their roles
Many homeowners engaging in building work are not aware of the duty-holder roles that can affect the project’s liability or compliance as a whole, or that a contract is important to protect both them and the builder.
The changed FMB builder contract templates:
- Identify professional, trustworthy builders who operate to recognised standards
- Understand their own legal duties under current building regulations
- Avoid disputes by having clear terms agreed upfront, and clear steps to take if something does go wrong.
- Verify competence through built-in competency statements
- Protect their investment with legally robust agreements
By including:
- Clear duty holder role definitions under the Building Safety Act, protecting both builders and homeowners
- Competency statement templates demonstrating skills, knowledge, experience and behaviours (SKEB)
- Plain English throughout – no confusing jargon or legal terminology
Flexible payment terms and optional advance/deposit mechanisms - Tailored versions for all four UK nations
- Alignment with the FMB Code of Conduct, which requires members to use written contracts on every job
Brian Berry, FMB CEO, said: “Homeowners often don’t know what questions to ask when hiring a builder. Our contracts do that work for them. When an FMB member presents a professional, comprehensive contract that explains duty holder roles and legal responsibilities, it immediately signals this is a trusted business operating to the highest standards. In an industry where licensing is being discussed and desperately needed – these contracts give homeowners the confidence they need.”
Sarah Fox, FMB contract creator, said: “No-one ever thinks they need a contract, until a client fails to pay, a subcontractor disputes what their role was, or there’s a defect at the property. Of course, the UK building sector is awash with complex contracts that really are hard for members to read, understand and use. But the FMB contracts are specifically designed with members’ needs front and centre – easy to fill in the details, cover everything important and they shouldn’t be off-putting for your clients or subcontractors. They only safeguard your business, though, if you use them! If you’ve avoided ‘going down the legal route’ previously, please give them a try. We want you to test them and feedback if there is room for improvement. But we really just want you to get the benefit from our hard work creating them.”
Cowboy builders have cost homeowners £14.3bn
In a report released by the FMB in July, 37% of British homeowners have hired a cowboy builder without being aware of it, and 33% reported low-quality work.
Furthermore, 85% said that the cost of hiring a builder has risen, nearly half of which said “by a lot,” while 37% had delayed renovations due to cost or availability, 34% resorted to doing the work themselves, and 16% gave up on the project entirely.
15% reported that they had lost money in the last 5 years due to sub-standard building work, at an average of £1,759 per person. This means that the country as a whole loses £14.3bn per year to sub-standard building practices and sub-par builders.
Brian Berry, chief executive of FMB, added: “This research lays bare the scale of damage caused by poor standards and a lack of accountability in the building industry – from botched jobs and lost savings to deepening public mistrust.
“We urgently need a licensing system for domestic building companies that ensures only competent builders are allowed to trade. Licensing would protect consumers while also supporting reputable builders by ensuring a level playing field.
“Licensing building companies would raise standards across the building industry and give homeowners the confidence to carry out home improvements. The public has had enough of cowboy builders – it’s time for change.”
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