Building & Renovation in France: Build it into the contract

Finding competent and reliable workmen is not only a problem in the UK, despite the Polish factor, but also in France, where this phenomenon does not appear to have arrived on the French scene – at least not yet. In France, most good workmen are gainfully employed on various building projects – not least on loft and barn conversions so popular and beloved among Brits. When selecting a builder, recommendations from friends are probably the best guarantee of good workmanship.

Likewise, many French builders worth their hire are keen to show prospective customers projects they have completed. This is a source of comfort and confidence, as well as a good way of comparing prices. In any case, make sure the builder you choose is registered with the French authorities. This means that if anything goes wrong, especially if the builder goes bust, you have financial resort through official insurance schemes. This applies also to English builders registered in France.

If your French is not so good, it is helpful to find a builder who speaks English and, in particular, knows the English equivalent of French technical building terms; or if not, at least has a good French technical dictionary. It is often useful to find a builder that has most, if not all, of the trades required for the work concerned – a ‘one-stop’ situation that avoids coordination problems when you have to rely on, say, an independent plumber and/or electrician. This can save time and money, particularly if the project involves a holiday home (residence secondaire) and you are not on site to keep an eye on things. Finally, on the subject of choosing a builder, try to find one who specialises in the kind of project you are undertaking.

Advance payments There are a number of small builders who, for example, specialise in loft and barn conversions and do nothing else. They are often much in demand and there may be a wait to use them. This can raise a number of financial issues. Being small concerns, these builders usually require money upfront, to finance their operations. Advance payments need to be handled carefully. For instance, an upfront payment of 30% – instead of the more usual 10% deposit – is frequently demanded. Combined with a wait of say, three to six months for the work to begin, the money, so far as the customer is concerned, is dead money, not earning interest which, depending on the total value of the project, could be quite significant.

Again, once the work begins, a further 30% or 35% (be clear on whether this is a percentage of the total bill or the balance remaining after payment of the deposit and any other sums) is often demanded, with further sums as the work proceeds to cover expenses, which should be specified, for example, materials. In such cases it is advisable to agree a definite start and end date for the work, with, if possible, financial penalties payable by the builder for delays in completing the work (for instance, €300 per day).

Planning permission A further complication, with financial consequences, arises, where planning permission (permis de construire) for the project is required. Depending on the complexity of the project, this can take months to obtain, especially if the summer intervenes (August is a dead month in France), resulting in further delays on starting the work. To proceed without planning consent can result in fines and orders from the planning authorities to halt or even demolish any work done.

Again, it is advisable to agree with the builder a time clause for obtaining the permission by a specified date, and a return of the deposit if that date passes without permission having been granted. Otherwise, the builder is holding your money without it earning any interest for you. Stage payment arrangements in building contracts are preferable, whereby the builder does the work first and at various stages of the project, sends the customer a bill (facture) for work done, which the customer is then required to pay (assuming, of course, they are satisfied with the work done).

In the absence of a stipulation to the contrary, such stage payments customarily become due within 30 days of the bill being rendered. In effect, the builder – not the customer – is financing the operation. Again, this method of payment allows the customer the possibility at the end of the project to retain the final instalment to remedy any defects found in the building work or other matters with which they are unhappy. To avoid any dispute on retentions, this matter should be expressly covered in the building contract.

Builders’ quotes Finally, do not forget that the builder’s estimate (devis), which the parties sign once everything has been settled, constitutes a legally binding contract between the parties. That’s why the customer’s signature is preceded by the time honoured words: lu et approuvé et bon pour accord. In other words, read and approved and good for agreement. So, any special stipulations or conditions should be included in the devis itself or in a signed and dated annex to it. Clarity on both sides is the name of the game and pays dividends.

Ian Blackshaw is an international lawyer. Email: cblackshawg@aol.com

---