We look at:
Key TakeawaysAre Verbal Agreements With Builders Legally Binding?What You Need to Prove a Verbal Agreement ExistedEvidence That Can Support Your CaseWhen a Builder Disputes What Was AgreedCommon Problems With Verbal Building AgreementsSteps to Take If Your Builder Is Not Honouring the AgreementWhen Legal Advice Becomes WorthwhileFrequently Asked QuestionsCan You Sue a Builder Over a Verbal Agreement?What Evidence Do You Need to Prove a Verbal Contract With a Builder?Is a Text Message Agreement With a Builder Legally Binding?Acting Early on a Building Dispute Can Improve Your Prospects of RecoveryCan I Enforce a Verbal Agreement with My Builder?
You might have a verbal agreement with your builder because you’re planning a small project or they’ve worked for you before. You might even have a written contract and have agreed to some additional works verbally.
So, what can you do if you aren’t happy with the quality of the work or the price, or your builder disagrees with some of the verbally agreed terms?
We act for homeowners and small businesses across England and Wales who are in dispute with their builder and relying on a verbal agreement. If you want clear advice on your options, contact our specialist construction litigation solicitors. Our team act nationally and we would love to help you.
Key Takeaways
- Building disputes are commonplace over scope,quality of work and price.
- Most verbal agreements are legally binding in English law, although there are exceptions for guarantees.
- A verbal contract requires the key components demanded by English law of offer, acceptance, consideration (value), and an intention to create legal relations.
- Proving the existence of a verbal contract involves evidence including emails, messages, receipts, payment records, and photographs or film of the completed work.
Are Verbal Agreements With Builders Legally Binding?
Some agreements must be written down to be legally enforceable. These include guarantees, contracts for the sale of property, and agreements involving intellectual property.
A verbal agreement with a builder is legally binding if it fulfils the essential elements required under English law needed to establish a contract. There’s an important legal difference between a contract and an agreement, and it’s the contract test that decides whether yours can be enforced. However, the real challenge is proving that it exists; it can boil down to one person’s word against another.
If there’s no written evidence to support the agreement, then you’ll have to rely on other ways to prove and enforce a verbal contract.
What You Need to Prove a Verbal Agreement Existed
You’re likely to have a trail of correspondence including text and SMS messages, emails, and potentially hard copy letters and estimates which collectively can support the existence of a verbal agreement.
Once you’ve proven the existence of a contract, you will need to establish a breach of contract and show that it caused you to suffer loss. Under the Limitation Act 1980, most claims for breach of contract must be brought within 6 years of the breach, though a longer limitation period may apply under the Defective Premises Act 1972.
Evidence That Can Support Your Case
Several types of evidence can support your case:
- Performance of the work. The builder actually carrying out the work is evidence in itself.
- Delivery notes and hire documents. These show materials and equipment arriving on site.
- Payment records. Consideration (value exchanged between the parties) is a legal requirement of any contract. Your bank statements will show payments made to the construction company.
- Witness evidence. Your own account, plus statements from third parties who can corroborate the agreement.
When a Builder Disputes What Was Agreed
A builder may dispute the existence of an agreement or accept the verbal contract and argue about additional terms which have been agreed in person.
This is a particular hazard when work departs from the original schedule due to changes in the project or unexpected challenges.
A verbal addition or variation to a written agreement can sometimes override the terms of the original contract. For this reason, many construction contracts contain a clause stating that any variations must be in writing and signed by both parties.
Common Problems With Verbal Building Agreements
- Your builder denies making an agreement or denies a variation of terms agreed verbally following a written contract.
- It can be more challenging to demonstrate the essential requirements needed to create a contract under English law.
- The lack of specificity means that it’s difficult to define precise obligations even in a scenario where the existence of a contract isn’t in dispute or you can prove it to the satisfaction of the Court.
- Verbal contracts rarely have the same level of considered thought or negotiation compared to a written agreement. Consequently, interpretations on different aspects may vary, creating misunderstandings that then lead to a dispute.
Steps to Take If Your Builder Is Not Honouring the Agreement
- Negotiate first, and keep it friendly. Log or record anything from this point onwards. If you speak to your builder in person, confirm the conversation by email afterwards.
- Request that your builder remedies the problem, while gathering evidence of the verbal agreement: emails, invoices, payment records, and dated photos or film if necessary.
- Ask relevant parties if they’ll act as witnesses: subcontractors, independent professionals like surveyors or planning officers, or people who work for your builder.
- Take legal advice if your builder refuses to cooperate.
When Legal Advice Becomes Worthwhile
In a building dispute, legal advice is worthwhile at an early stage. We can often prevent relations from deteriorating into a dispute and protect your rights while negotiations are ongoing.
Check from the outset whether you have a binding verbal agreement. The Court will need clear evidence of offer, acceptance, and consideration plus your intention to create a legal relationship. We can assess your case and establish whether there’s enough evidence to proceed with a claim.
Next you will have to prove the specific terms you want to rely on. Proving the existence of a verbal agreement in detail and then evidencing a breach can mean a long, drawn-out claim.
Early specialist advice can shorten this process and improve your outcome.
A letter from us tends to focus the mind and if your builder still disputes your claim, there are other resolution options like mediation, which is quicker and cheaper than going to court.
Written construction contracts routinely contain clauses providing for mediation in the event of a dispute. Mediation is part of a suite of Alternative Dispute Resolution options resolving disputes while helping projects stay on track.
If you are facing a dispute and aren’t certain what your options are, we’d love to assist you.
Frequently Asked Questions
Can You Sue a Builder Over a Verbal Agreement?
You can sue a builder over a verbal agreement if you can prove the essential components in English law that create a binding contract. These include offer, acceptance, consideration or value, and an intent to create legal relations. You must be able to evidence all of these and the specific details of the breach.
What Evidence Do You Need to Prove a Verbal Contract With a Builder?
You need enough evidence to be able to demonstrate the key contractual components. Evidence may include messages, emails, invoices for materials received on site, and payment records from your bank account. Performance of the work also constitutes a key evidential element.
Is a Text Message Agreement With a Builder Legally Binding?
A singular text message is unlikely to be sufficient. However, two or more text messages which show the requirements for a valid contract of offer, acceptance, consideration, and an intention to create legal relations can be sufficient. Additionally,a text message can be used as part of a broader cohort of evidence to demonstrate an intention to create legal relations or to demonstrate a specific element of the contract.
Acting Early on a Building Dispute Can Improve Your Prospects of Recovery
Taking specialist advice early in a building dispute often saves time and money. In a situation where the agreement is verbal, it’s easy to go round in circles with neither side able to effectively win their point.
We’re a team of specialist litigation solicitors providing practical advice on disputes for homeowners and businesses in England and Wales. Protecting your rights while identifying all your options is central to how we work, with the aim of the quickest and most cost-effective solution to align with your objectives.
We also put our own fees on the line for qualifying cases: No Win No Fee funding is available on qualifying construction and property disputes typically valued over £10,000 with strong prospects of success, subject to case assessment and our funding criteria.
If you’re in a dispute with your builder and only have a verbal agreement to rely on, speak to our specialist construction litigation solicitors. Our team have decades of experience acting in matters like yours, act nationally, and we would be happy to help you.