Homeowners in the South of England could be wasting billions of pounds every year by failing to take the necessary precautions when using a builder, according to new research by the National Federation of Builders.

Over a quarter of homeowners surveyed by the professional building body said they wouldn’t bother asking a builder for references before inviting them on site to start work.

Fifty per cent said they wouldn’t take out a warranty on the work, although an unwarrantied modification could decrease the future value of the property.

The research also showed that:

• Over a third of homeowners wouldn’t spend any longer than 60 minutes sourcing, researching and appointing a builder.
• Half would happily pay an advance cash deposit for building work, regardless of whether it was required or not.
• One in five wouldn’t bother checking if their builder had public liability insurance – a critical requirement if your builder injures a member of the public.
• Almost 50 per cent would accept a VAT-free quote from a tax-dodging builder if it meant saving them money, although they wouldn’t have any comeback should the work prove unsatisfactory.

Tony Maynard, chief executive of the NFB, which represents almost 4,000 professional firms, said: “It’s no surprise that so many homeowners are getting caught out by cowboy builders when they’re failing to take the right precautions.

“Homeowners spend an estimated £10.9 billion every year with builders having essential repair, maintenance and improvement work done on their home.

“Our message is simple – do your homework and don’t take unnecessary risks. Your home is the most important purchase you’re ever likely to make and your biggest asset – so why tempt fate?

“People can take hours deciding on a new washing machine yet they seem willing to spend only half the time planning something that costs ten times as much.

“We’re urging homeowners to get clued up and protect their investment. Simply by spending the time, effort and energy into making sure they’ve got the right man for the job, homeowners can save a lot of headaches and heartaches further down the line while safeguarding the value of their property.”

The NFB’s advice to homeowners keen to get the best results from their builder include:

• Start your search for a good builder by getting a referral from family or friends who have recently had work done. Or, check with a trade association, such as the National Federation of Builders, for details of reputable builders in your area. The NFB has strict membership criteria covering workmanship, financial status and health and safety and also operates a Code of Practice to help safeguard customers. Its members are required to provide eight references from customers, suppliers and financial institutions. Some other trade associations may not be as rigorous, so you may want to check their membership criteria.
• Don’t be fooled by the badge! There have been cases of bogus builders fraudulently claiming membership to official trade associations, so call and make sure they are a bona fide member.
• Almost half of those homeowners surveyed by the NFB said they wouldn’t bother asking a builder for references. Ask each builder you’ve selected to provide at least two or three - then check them. Contact the people who provided the references and find out how happy they were with the quality of workmanship and the builder’s conduct.
• Once you’ve got a shortlist of builders, obtain quotations and make sure they give full details in writing of what’s covered and what’s not. Ask them to confirm whether any planning permission is required for the work and whether they will need to apply for Building Regulations approval.
• Avoid a ‘VAT-free’ deal. You won’t have a valid contract if there is no proof of payment and a builder who is VAT registered is more likely to be above board.
• Put details of the job down in writing – the more thorough you can be, the better. Your contract should outline what work is to be done, start and completion dates, security and safety, catering and lavatory arrangements, disposal of waste materials and hours of working.
• Be straight about money with your builder and agree payment terms clearly in writing. The National Federation of Builders encourages its members to use the JCT building contract for homeowners and occupiers – a straight-forward, plain-English contract – which sets down in writing what’s expected of you and your builder, such as payment terms and agreements, helping to avoid any potential disputes. For a copy, priced £9.95, call Construction Industry Publications on 0121 722 8200 or order it online at www.buildingcontract.co.uk.
• Avoid paying a cash deposit - it shouldn’t be needed unless you request specialist building materials or the job is likely to take a long time to complete.
• Ask whether the builder is insured against claims covering property damage and personal liability in the case of accident or injury.

Consider taking out a warranty which insures you against future problems with your building work. The NFB operates “Benchmark Plan” - a members-only insurance scheme which pays out the cost of correcting any building work defects for periods up to 20 years after the job is completed.

Two useful publications, called “Avoid Cowboy Builders” and “Finding the builder who’s right for you”, are available free of charge from the National Federation of Builders, Unit 12, Westlinks, Tollgate, Chandler’s Ford, Eastleigh, Hampshire SO53 3TG.