Owning your own home

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dst2

We are looking at quotes to build an extension. after reading some t&cs we asked for JCT homeowners contract instead...this is the reply we got. xxx are the company

Hi dst,
We are unable to work to a JCT contract. As per the terms and conditions that Vicky sent through, the contractual setup that xxx work to is as follows: xxx are a project Management company and we arrange for contractors to work directly for yourselves. You make stage payments into a Client Deposit Account and you entrust xxx to manage your funds on your behalf. xxx release your funds to the contractors once we have checked each element of the project has been carried out to a high standard. Once the project has been finished and all invoices paid for, whatever sum is left in the Client Deposit Account is then transferred to xxx and this is our project management fee. xxx provide an overriding 10 year guarantee on the works and this forms part of the contract.

Any thought on this would be appreciated. They were the front runners but after this look to be out of the process.

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hugo7 in reply to @dst2

Iirc when my folks had a major renovation project, their JCT was with the main contractor (who subcontracted works). Then the woman doing the actual project management had a side contract. Although her role was more of a comms person.

Worth pointing out that sometimes there can be cost savings if you're contracting directly with the subcontractors. Mainly because often they're won't be VAT registered, whereas a mgmt Co will almost definitely be.

If there's a kitchen going in the extension then that's possibly a lot of subcontractors.

There are obviously pros and cons to this. But thought it was worth pointing out.

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dst2 in reply to @hugo7

We wouldn't be sourcing and contracting them, they would. We would hold the contract, pay them as PMs and they would pocket the difference. They get the premium of subcontracting with out holding the risk it seems. It might be fine and they were the cheapest but we don't know enough to make a good judgment so we wont be using them.

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