Imagine this: You’ve just finished a full bathroom refurbishment for a client. The tiling is pristine, the plumbing is solid, and the project has taken longer than expected because partway through, the client changed their mind about the layout. You had to move pipework and retile, but you made it work. Now, as you send the final invoice, the client disputes the cost increase. “I thought that was included in the original quote,” they say. Then they ask about the new door—one they briefly mentioned but you never agreed to supply and fit. To top it off, they refuse to pay for waste removal, insisting you should have factored that in.

These situations are more common than you’d think. As a sole trader or small contractor, your reputation, time, and cash flow are everything. A simple contract doesn’t just protect you—it keeps your business running smoothly by setting clear expectations from the start. Here’s how.

The Most Common Issues Tradespeople Face—and How a Contract Can Prevent Them

1. How a Scope of Work Contract Protects Small Contractors

Example: You quote for a bathroom refurbishment. Halfway through, the client asks if you can also replace a few kitchen taps and sort out a dodgy boiler pressure issue. You oblige, but when you send the final invoice, they refuse to pay for the extras—claiming they assumed it was all included.

Solution: Define the Scope of Work

✅ Include a detailed description of the work covered in your quote.

✅ State that any additional work requires a written agreement and a revised quote.

✅ Use a simple variation clause: “Any work outside of this scope will be quoted separately and agreed upon in writing before proceeding.”

2. Late Payment Protection for Tradespeople: How to Get Paid on Time

Example: You complete a job, send your invoice, and wait. Days turn into weeks. The client stops responding, and you’re left out of pocket, with no clear way to enforce payment.

Solution: Set Clear Payment Terms

✅ State your payment schedule upfront (e.g., 50% deposit, 50% on completion).

✅ Include a late payment clause: “Invoices must be paid within X days. Late payments will incur a fee of X% per month.”

✅ Consider offering staged payments for longer projects to improve cash flow.

3. How to Prevent Hidden Costs in Contractor Agreements

Example: You uncover rotten floorboards mid-renovation, requiring extra work and materials. The client is shocked when you mention additional costs and refuses to pay for them.

Solution: Include a Contingency & Unforeseen Works Clause

✅ A simple line like “Any unforeseen issues requiring additional labour or materials will be communicated before proceeding, with a revised estimate provided.”

✅ Keeps expectations clear and prevents uncomfortable conversations about surprise costs.

4. Construction Liability Clauses: What Every Tradesperson Should Include

Example: You finish the job, but a week later, the client claims you scratched their brand-new bathtub. They threaten to leave a bad review unless you fix it—at your cost.

Solution: Protect Yourself with a Liability Clause

✅ Define what you’re responsible for: “The contractor is liable for damages caused by negligence but not for pre-existing issues or misuse by the client.”

✅ Take before-and-after photos to document site conditions.

5. Cancellation Policies in Small Contractor Contracts: Why You Need One

Example: A client cancels the job the night before you’re due to start, after you’ve already ordered materials and turned down other work.

Solution: Introduce a Cancellation Policy

✅ Require a non-refundable deposit to cover upfront costs.

✅ State that cancellations within X days of the start date will incur a charge.

6. Waste Removal in Construction Contracts: Avoid Costly Disputes

Example: You complete a bathroom renovation and leave the site tidy, but the client calls later, upset that the old tiles, plasterboard, and fittings are still on their driveway. “I thought you were taking care of that?” they say. You never agreed to, but now it’s an issue.

Solution: Specify Waste Removal Responsibilities

✅ Include a clause stating who is responsible for removing debris. Consider taking this task on for profitability and the opportunity to dispose responsibly of waste.

✅ If you offer waste removal, specify the cost and method upfront. Consider getting a license to access the local recycling facilities.

✅ Use a simple line: “Waste removal is not included unless explicitly agreed upon in writing. A disposal service can be arranged at an additional cost.”

The Real Benefit: More Time, Less Stress, Better Cash Flow

A contract doesn’t have to be complicated. A few clear clauses can prevent misunderstandings, reduce unpaid work, and keep your projects running smoothly. More importantly, it gives you confidence in running your business—so you can focus on doing great work instead of chasing payments or managing disputes.

At The Place Between, we help small contractors like you put simple, effective contracts in place that safeguard your business while keeping things practical and professional. If you’d like to discuss how to create a contract tailored to your business, book a call with me.

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Always consult a qualified legal professional for specific guidance.

Best as always 💚 Valerie

www.theplacebetween.co.uk

Instagram: @theplace_between