Some Tips On Selecting A Building Contractor:

 

Who chooses which building contractor will quote for the re-instatement work? 

Usually, the choice rests with the policyholder who will be asked to obtain two or three alternative estimates. If the work involved is small, you may only be asked to obtain one estimate. Some insurance companies have their own selected panel of building contractors, in which case they will select and nominate a firm. They will then submit their estimate to your insurer and payment will be made direct between the insurer and the contractor, subject to you being satisfied with the standard of workmanship.
 

How should I select the contractors that I wish to quote?

The best advice that we can give is to talk to friends, family and neighbours to obtain a personal recommendation. If you select a contractor from the Yellow Pages or similar directory, you may find that out of ten who say they will come, only six or seven actually arrive and then only one or two will actually put an estimate in writing.
 

As a firm of loss adjusters, you must use contractors on a regular basis. Why do you not recommend any particular firm?

It is our experience that even with well tried and trusted building contractors, there is no guarantee that every contract will be problem free. We, therefore, prefer policyholders to select their own contractor without any input from ourselves. This also avoids the potential for us being accused of taking commissions for recommendations!
 

What if I want to have some other work carried out at the same time as the insurance work is carried out?

This is not a problem providing that the estimates which are submitted clearly identify which work relates to the insurance claim and which work is a private matter between you and the contractor. You should bear in mind that the insurance policy will not pay for undamaged areas or for any betterment/improvement works.
 

Once I have obtained estimates, who decides which firm will undertake the repair?

The insurance company or their representative, such as a loss adjuster, will check that all of the estimates allow for the same and correct scope of work. Subject to all of the contractors appearing to be professional and competent, you will then be asked to instruct the lowest quoting contractor.
 

Who authorises the contractor to start work? 

In order to preserve the correct contractual relationship, we ask you to instruct the contractor at the earliest possible date that is convenient to both parties. This means that you are able to control the work of the contractor and to raise any issues which may arise during the course of the work on a direct basis.
 

How, and to whom, will payment be made?

Unless the contract is very small (less than £1,500) your insurers or ourselves will almost always ask to see a copy of the final account. Payment will then be made direct to yourself taking into account any previously agreed adjustments including deduction of the policy excess. If you have a mortgage, the interest of the lender will normally be included on the cheque. If you would like the contractor to be paid direct, this will not usually be a problem providing that you supply a proper letter of authority instructing payment to be made in this fashion. Normally, you will need to sign a satisfaction note confirming that the works have been completed to an acceptable standard.
 

Does anyone check the work once it has been completed?

When the cost of repairs is substantial, the buildings insurers will normally have paid for the cost of a surveyor or architect to superintend the work. They will not issue a final certificate until they are satisfied that the works have been carried out correctly. For smaller contracts, the fact that you have forwarded a copy of the final account is normally taken as sufficient proof that you are satisfied regarding the work, with the result that no further inspection will usually be undertaken.

What if the builder will not start work without a deposit?

We would not recommend paying any sums to a builder until they are actually on site and materials have been delivered. This is to protect you from fraud. Once you have materials on site that are of some value, arrangements can be made for an interim payment to be made, subject to an appropriate interim invoice being produced by the contractor. On large projects, a number of interim, or stage, payments may have to be made.
 

Does the VAT have to be paid by the insurance company?

If the policyholder is a VAT registered organisation which is able to recover 100%, or a part percentage, from HM Customs and Excise, the insurers will not pay either any or part of the VAT element of the final account. If the policyholder is a private individual or is not a VAT registered organisation, then insurers will meet the full cost of repair including any element of VAT. Not all contractors are registered for VAT and you should be careful to ensure that VAT is only charged by an organisation which is entitled to add VAT to their invoice. VAT invoices must have a tax point (usually the date when the invoice is issued), must be clearly numbered, and must show the appropriate VAT registration number.
 

If I employed an assessor to help me deal with my claim, can the cost of their fees be met?

Unless you have arranged specific insurance cover to pay for the cost of assessors' fees, which would be very unusual, their costs must be met by yourself. Please note that the superintending of the actual reinstatement works by a surveyor or architect is a different issue which we have dealt with above.