Loft conversion with large rooflight

Project by Tuckey Design Studio under construction. Photo by Nick Ingram.

How to Find and Hire a Builder for a House Renovation or Extension

Explore essential steps for hiring the right builder for your house renovation or extension. This comprehensive guide covers defining your project, setting a budget, choosing a building route, and navigating the tender process to ensure a successful construction experience.

Aron Coates, Architect, BA (Hons), BArch, ARB | Designs in Detail | November 2024


Finding and hiring the right builder for your project is crucial to ensuring a successful construction experience. This step-by-step guide walks you through the essential steps, from gathering the information you’ll need for an accurate estimate to getting them on board and starting work on site.

1. Define Your Project

Before you start your search for a builder, clearly define your project. This involves preparing a good set of plans and specifications to outline your project's scope. Without these, the builder will be guessing and making assumptions.

You should also prepare a Schedule of Works, which is a pricing document that itemises tasks and is sent to all builders as a live document (Excel or similar) for completion. Tailor the level of detail to your project; if you don’t create a schedule, you’ll rely on builders producing their own pricing documents, making it difficult to compare prices.

Providing a detailed set of plans and specifications will ensure greater cost accuracy. Example technical drawing by Aron Coates.

2. Set a Budget

During the design stage, establish a realistic budget. Use online resources to gauge costs, and if you have an architect on board, they can provide outline cost advice based on tenders received for similar projects.

Do not disclose your budget to builders; it’s best to conduct the pricing exercise without revealing this information. The purpose is to test the market – if you disclose a higher budget than what a builder might estimate, there’s a risk they could inflate their quote.

Consider including a contingency fund of 10-15% for unexpected costs. Research local material and labour costs, as these can vary significantly by region. For complex projects, consulting a quantity surveyor can provide detailed cost estimates.

3. Choose a Building Route

The building route determines how your project is contractually set up and defines the roles and responsibilities of all parties involved – client, architect, etc. The two main options for running a domestic project are the traditional building route and design and build.

If you have an architect on board, the traditional route is likely the best choice as it ensures a high level of design quality. The ‘design and build’ route may be suitable if you’re not retaining your architect’s services during construction or using other design services (e.g., an architectural technologist). In this case, the builder has more freedom, which could lead to lower design quality if an architect isn’t involved during the site phase.

Certain builders may prefer one route over the other; those specialising in high-quality work are more likely to favour the traditional route, while those focusing on standard projects may prefer design and build.

Site photo by Jim Stephenson. Project by Architecture for London.

4. Decide on Tender vs Preferred Builder

To agree on a price with a builder, you can either tender the project to several firms or negotiate with a preferred builder. Tendering allows you to test the market and receive multiple quotations, providing peace of mind that you're getting value for money. However, selecting a builder isn’t just about cost; consider their quality of workmanship, track record, organisation, and the personalities of those involved.

If there’s a reputable firm in your area with an excellent track record, negotiating directly can be effective. If you choose the preferred builder route, surround yourself with a professional design team – architects, structural engineers, etc. – to ensure you receive value for money.

5. Decide on the Tender Route

If you choose to tender the works, there are two main options:

  1. Single Stage Tender.
  2. Two Stage Tender.

Single Stage Tender

This approach involves getting detailed quotes from builders based on a complete design. Your architect (or other designer) prepares detailed plans and specifications. You then invite selected builders to provide quotes based on these documents, review the quotes and choose a builder.

Pros:

  • More accurate pricing due to detailed plans.
  • Less risk of unexpected costs during construction.

Cons:

  • It takes longer to start building, as you need to wait for detailed designs.
  • If quotes are too high, you might need to redesign, causing delays.

Two Stage Tender

This method involves bringing a builder on board earlier in the design process.

During the first stage you invite builders to quote based on initial designs and outline specifications and choose a builder based on their preliminary costs and expertise. The second stage involves your chosen builder liaising with your design team to finalise the plans and agree on a final price.

Pros:

  • The builder can contribute to the design process, potentially improving buildability
  • You can start construction earlier
  • Better collaboration between the design team and the builder

Cons:

  • Less certainty about the final cost at the beginning
  • Potentially less competitive pricing

Choosing the Right Approach

The best approach depends on your project's complexity, timeline, and budget. For simpler projects, a single stage tender often works well. For more complex or time sensitive projects, a two stage tender might be better.

If you're unsure, consult with your architect or project manager. They can guide you on the best approach for your specific situation. Whichever route you choose, it's crucial to have clear communication and documentation throughout the process.

House extension under construction. Photo by Pensaer.

6. Find Builders to Quote

If you've appointed an architect, they can recommend builders. If not, start by asking friends, family, and colleagues for recommendations. Our project pages include lists of companies involved in previous projects.

Once you have compiled a list of six or seven companies, gauge their interest before narrowing it down to at least three candidates. Verify their credentials by checking:

  • Relevant qualifications and certifications.
  • Who will be involved in your project.
  • Their organisational structure (do they directly employ their labour?).
  • Proper insurance (public liability and employer's liability).
  • Their portfolio.
  • References from previous projects.

7. Send Out Tenders for Pricing

Send pricing documents to your chosen builders for their quotations. Whether pricing through competitive tendering or via a preferred builder arrangement, your pricing pack should include:

  • Project details and contact list.
  • Drawings and specifications.
  • Schedule of works.
  • Target start and completion dates.
  • Proposed building contract.
  • Details of any site constraints (parking access or noisy working hours).
  • A cover letter outlining project parameters and timeline (if tendering; set the return date).

The level of detail should match your project's complexity; sending less creates unknowns that could lead to price fluctuations once you've engaged a builder.

8. Analyse Tenders and Choose a Builder

When comparing returned tenders, create a spreadsheet linked to your original schedule of works. First, check each builder's arithmetic for errors and identify any missing items. Then analyse costs per section – groundworks, structure, floors, walls –and compare against each tender.

Look out for unusual pricing patterns; for example, high foundation costs paired with cheaper decoration costs may indicate that the builder is unsure about specific details and hedging their risk!

Include provisional sums for items not yet finalised before issuing your schedule. Builders may provide feedback on these, so ensure their comments are considered and applied consistently across all tenders.

List any queries you have and contact builders for clarification. After completing your analysis, select your preferred contractor for further discussions while being cautious of unusually low quotes that may hide potential issues or extra costs.

9. Agree on a Final Price

Following detailed discussions and further clarifications, agree on a final price for your project. If costs need reducing, consider adjusting specifications or phasing parts of the project while being prepared for unexpected issues that may arise during construction.

For renovation or extension projects, maintaining a contingency fund of 10-20% separate from your agreed final price is advisable to cover unforeseen expenses.

Once you've agreed a final price with a builder sign a building contract. Photo by RIBA.

10. Sign a Building Contract

Once you've chosen a builder, ensure all details are clearly outlined in a written building contract that includes:

  • Detailed drawings and specifications (the contract documents).
  • Programme with key milestones.
  • Payment schedule.
  • Warranties and guarantees.
  • Procedures for handling changes or disputes.

By following these steps and understanding the tendering process, you'll be well-equipped to find and hire a reliable builder for your project.

For further guidance on how this fits into your overall project plan, see our guides on renovating or extending a house – they provide step-by-step instructions from getting started right through to completing works on site.

READ:
The Ultimate Guide to Building a House Extension: From Concept to Completion
How to Renovate a House: Your Ultimate Step-by-Step Guide from an Experienced Architect

The information provided in this article is intended for general guidance only. For specific expert advice on your project, consult an experienced residential architect featured on Designs in Detail.


About the Author

Aron Coates is an architect with over two decades of experience working on projects ranging from historic building restoration to contemporary home design.

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