Important note: This article provides general guidance and a framework for common T&C clauses. It is not legal advice. For legally robust terms and conditions specific to your trade and circumstances, consult a qualified solicitor or a trade body legal helpline (e.g. FMB, NFRC, ECA).

Summary

Most UK tradespeople work without any written terms and conditions, relying on a handshake and a verbal agreement. This works fine on the majority of jobs — but it creates significant exposure when disputes arise. Without written terms, the customer can dispute the price, refuse to pay the final invoice, and leave the tradesperson with no clear contractual basis for recovery.

A clear set of T&Cs does three things: it sets expectations before the work begins, it protects the tradesperson if a dispute goes to court or small claims tribunal, and it signals professionalism to customers who associate written contracts with reliable businesses. Research consistently shows that tradespeople who use written contracts get paid faster and have fewer disputes.

The legal framework for domestic work in the UK is primarily the Consumer Rights Act 2015 (for B2C contracts) and the Supply of Goods and Services Act 1982. For commercial work (business customers), the Sale of Goods Act 1979 and contract law principles apply, with somewhat more flexibility for the parties to agree their own terms.

Key principle: for domestic customers, you cannot contract out of statutory rights. If your T&Cs include a clause that says "no liability for defective workmanship" or "no refunds under any circumstances," those clauses are void under the Consumer Rights Act and will not be enforced by a court. Your T&Cs should work within the legal framework, not attempt to override it.

Key Facts

  • Consumer Rights Act 2015: Applies to all contracts with domestic customers; services must be performed with reasonable skill and care, in reasonable time, and at a reasonable price
  • Unfair Terms in Consumer Contracts Regulations: Terms that create significant imbalance against the consumer may be declared unfair and unenforceable
  • Cancellation rights: Under Consumer Contracts Regulations 2013, domestic customers have a 14-day cooling-off right for contracts concluded off-premises (i.e. at their home or over the phone) — must be notified in writing
  • Deposit limits: No legal maximum, but industry convention is 10–33% for materials; excessive deposits (50%+) may be challenged as unfair by Trading Standards
  • Payment terms: If not specified, the law implies payment is due on completion; specify payment terms explicitly (e.g. "within 7 days of invoice")
  • Retention: Industry standard is 5% retention for 12 months (on larger projects); must be specified in T&Cs to be enforceable
  • Variation orders: Any change to agreed scope should be agreed in writing with revised price — without this, customers may dispute additional charges
  • Liability limits: You can limit liability but not exclude it entirely for domestic customers; limits must be "reasonable" under the Unfair Contract Terms Act 1977
  • Dispute resolution: Including a mediation clause can reduce the likelihood of formal proceedings for both parties
  • VAT: If VAT-registered, state whether prices are inclusive or exclusive of VAT
  • Insurance: State what insurance you hold (public liability, professional indemnity) — not a legal requirement in T&Cs but builds customer confidence
  • Governing law: State "the laws of England and Wales" (or Scotland/Northern Ireland as applicable) govern the contract

Quick Reference Table

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Clause Purpose Consumer Law Constraints
Payment terms Defines when payment is due and consequences of late payment None — you can specify terms; late payment interest (Statutory Rate) is automatic for commercial clients
Deposit Protects against materials cost and customer cancellation Cannot be unfairly large; must be reasonable proportion of total
Cancellation by customer Specifies what happens if customer cancels Customer has 14-day cooling-off right (off-premises); beyond 14 days, deposit retention may apply
Cancellation by contractor What happens if you cannot complete Must be reasonable; compensation may be owed for wasted customer cost
Variations Change to scope, price updates Verbal changes are risky — always document in writing
Defects liability period Period in which you'll return to rectify defects Cannot reduce the 6-year limitation period for contract claims
Materials and goods Ownership (title), quality standards Materials must be of satisfactory quality (Consumer Rights Act)
Liability limit Cap on total liability Cannot exclude liability for death/personal injury; limits must be reasonable
Force majeure Events outside your control (supply delays, extreme weather) Reasonable if specific — blanket clauses may be challenged
Dispute resolution Mediation before legal action Good practice; enforceable
Governing law Jurisdiction England and Wales / Scotland / Northern Ireland

Detailed Guidance

Payment Terms

Specify: when payment is due (on completion, within 7 days, upon invoice, staged payments), what methods of payment you accept (BACS, card, cash), and what happens if payment is late.

For staged payments, clearly define the milestones and the payment due at each:

  • Deposit (before work starts)
  • Interim payment (at practical completion of each major phase)
  • Final payment (on completion of snagging)

Late payment: for commercial clients (other businesses), you can charge statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 — 8% above Bank of England base rate — automatically, without needing to specify it in T&Cs. For domestic customers, you must specify any interest clause in your T&Cs and it must be reasonable. Avoid punitive rates (e.g. 20% per month) which will not be enforced.

Deposits and Cancellation

Your T&Cs should state the deposit amount (or percentage), what it covers (materials procurement, reservation of diary time), and what happens to it if the customer cancels.

Off-premises cancellation right: if the contract was concluded at the customer's home (e.g. you attended to quote and the customer signed on the spot) or by telephone, the customer has 14 days to cancel without penalty under the Consumer Contracts Regulations 2013. You must inform customers of this right in writing before they sign. If you fail to do so, the cancellation period extends to 12 months.

Practical note: for most jobs, the customer books in advance, signs nothing on the doorstep, and the cooling-off period is less relevant. However, always provide written confirmation of the booking and T&Cs at that point.

If the customer cancels after the 14-day period, you may retain deposits covering actual costs incurred (materials purchased, subcontractors booked) plus a reasonable portion for the lost booking. Retaining the full deposit as a penalty — where you have incurred no costs — is likely to be challenged as an unfair term.

Scope of Work and Variations

This is the most frequent source of disputes. Your quote should clearly define what is included and what is excluded. Explicit exclusions are as important as inclusions:

Common exclusions to state:

  • Making good after trades work (e.g. repainting after first fix electrical)
  • Disposal of waste unless explicitly priced
  • Work to existing structure found to be defective
  • Planning or Building Regs applications and fees
  • Work outside agreed area
  • Any work requiring specialist trades (asbestos removal, structural engineering)

Variation procedure: your T&Cs should state that any change to the agreed scope requires a written variation order agreed and signed by both parties before additional work begins. Without this, customers can dispute additional charges by arguing they were part of the original scope.

Using squote: Every quote sent through squote — including variation orders — is emailed to the customer as a PDF and stored permanently in your quote history. That creates the written paper trail your T&Cs require, without any extra steps.

Include a rate for variation work (either a day rate or an agreed rate per unit for common additions) so there is no ambiguity.

Defects Liability and Workmanship Guarantee

The Consumer Rights Act implies a statutory right to repair or replacement for defective work for up to 6 years (England and Wales; 5 years in Scotland). You cannot reduce this period in T&Cs for domestic customers.

You can — and should — define how this works in practice:

  • A defects liability period (DLP) during which you will attend to minor snags at no charge (typically 12 months from practical completion)
  • A clear process for reporting defects (in writing, within a reasonable time of discovery)
  • Your right to remedy defects before the customer engages another contractor at your expense

If you offer a workmanship guarantee beyond the statutory minimum, state the specific terms: what is covered, what is not, whether it transfers to new owners, and whether it requires registration.

Liability

You can limit your liability to domestic customers, but you cannot:

  • Exclude liability for death or personal injury caused by negligence
  • Exclude liability for fraudulent misrepresentation
  • Include terms that create a significant imbalance against the consumer (unfair terms)

Reasonable liability limits: capping liability at the value of the contract is typically reasonable for small domestic jobs. For larger projects, capping at the insurance limit is common. State clearly what insurance you hold.

Materials

If you are supplying materials, state:

  • Materials remain your property until payment is received in full (retention of title clause)
  • Any materials specified by the customer that you have sourced to their specification are not your liability for suitability
  • Unused materials are returned or credited at cost (or remain your property)

Goods supplied must be of satisfactory quality and fit for purpose (Consumer Rights Act 2015). You are responsible for materials you supply; for materials the customer provides, your liability is limited to workmanship only.

Making Good and Reinstatement

Specify who is responsible for making good after your work. First fix electrical and plumbing work often leaves chases in plaster, holes in walls, and disturbed floor surfaces. Is making good included in your price? If not, state explicitly: "Making good plaster, decoration, and floor surfaces disturbed by first fix work is excluded from this contract and is the responsibility of the client."

Dispute Resolution

Include a clause specifying that in the event of a dispute, both parties will attempt to resolve it through a recognised trade body mediation scheme before commencing legal action. Many trade bodies (FMB, NFRC, Gas Safe, NICEIC) offer dispute resolution services.

Alternative Dispute Resolution (ADR) is increasingly expected by Trading Standards and courts for consumer disputes. A mediation clause shows good faith.

Frequently Asked Questions

Do T&Cs have to be in writing?

A contract can be formed verbally. However, verbal contracts are very difficult to enforce because there is no agreed record of the terms. Written T&Cs provided before the work starts create a clear record that protects both parties. Always send T&Cs with the quote, not as an afterthought.

Can I charge interest on overdue invoices?

For domestic customers, you must include an interest clause in your written T&Cs for it to apply. For commercial/business customers, the Late Payment of Commercial Debts Act applies automatically — you can charge 8% above base rate without it being in your T&Cs. Specify whether your customer is treated as a domestic or commercial client.

What happens if I find additional work mid-job?

If you discover additional work during a project (e.g. rotten timbers found under floorboards), stop work and obtain written agreement to the additional scope and price before continuing. If you proceed without agreement and the customer later disputes the additional charge, you may struggle to recover it. Your T&Cs should clearly state this procedure.

Should I use a standard trade body template or write my own?

Using a trade body template (FMB, Which? Trusted Traders, NFRC) as a starting point is good practice — these have been reviewed by solicitors and Trading Standards. Customise to your business but avoid removing key clauses. Have any significant changes reviewed by a solicitor.

Can I use the same T&Cs for business and domestic customers?

You can use the same T&Cs but should clearly identify which clauses apply to domestic customers (B2C) and which to business customers (B2B). Alternatively, maintain two sets. The Consumer Rights Act protections apply only to domestic customers — commercial clients have more limited rights and you have more flexibility in the contract terms.

Regulations & Standards

  • Consumer Rights Act 2015 — services must be performed with reasonable skill and care; defines remedies for defective work

  • Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 — 14-day cooling-off right for off-premises contracts

  • Unfair Contract Terms Act 1977 — liability limits must be reasonable

  • Late Payment of Commercial Debts (Interest) Act 1998 — automatic interest right for B2B contracts

  • Supply of Goods and Services Act 1982 — implied terms about quality and performance of services

  • Federation of Master Builders Contract Templates — standard contract documents for domestic builders

  • Citizens Advice Business Guide to Consumer Law — plain-English explanation of consumer rights for tradespeople

  • Which? Trusted Traders Terms Guidance — T&C guidance for registered tradespeople

  • Gov.uk — Consumer Rights Act 2015 — official guidance

  • written quote template — structuring a professional written quote

  • cdm regulations — CDM 2015 duties relevant to domestic construction contracts