What is the Home Improvement Contract?
The Home Improvement Contract (HIC) is the formal agreement between you and your chosen builder. It’s signed securely through the Beams platform before any construction work begins.
It sets out what’s being built, how much it costs, when payments are made, and the standards your builder must meet.
Beams isn’t a party to this contract. Beams provides the platform and payment service, acting as the builder’s disclosed agent.
What it covers
The HIC brings all key project details into one clear, binding agreement. It includes:
1. Scope and price
The HIC Work Order (Appendix 3) lists your agreed works, the total price (the ‘Total Fee’), and the payment milestones.
It’s a design-intent document — your builder will still verify all measurements on site and confirm feasibility.
2. Timings
The HIC includes indicative dates, which may change for fair reasons such as approvals, weather, supply delays, or site conditions.
3. Payments
Payments are made only through Beams, via our regulated payment provider acting as the builder’s agent. You pay:
- £1,000 when you select your builder
- The remaining construction balance after you and your builder sign the HIC, and before work starts
Beams holds funds securely and releases them at each milestone once the builder issues a Milestone Notice and you’ve had seven days to raise any objection.
4. Refunds and cooling-off
You have a statutory cooling-off period, set out in both the HIC and Customer Agreement.
You may cancel your builder selection or the HIC for any reason up to the earlier of:
- 14 days after signing the HIC
- The day before work begins on site
- The day before the scheduled start date in the Work Order
If you ask the builder to start within the 14-day period, you may waive part of this right.
If you cancel within this window:
- Any unused balance of the Total Fee is refunded
- Money spent on work you asked to start early, or on materials bought for you, isn’t refundable
- Any Beams platform or consultation fees already incurred aren’t refundable
Your £1,000 builder-selection payment forms the first part of the construction fee. It’s refundable during the cooling-off period unless work has already started. If nothing has been spent, the full £1,000 is returned as part of the unused balance.
5. Changes
Any change to your scope must be agreed through the platform’s Change Order process.
Changes update cost, timing, and payment milestones once both sides accept them. Verbal changes aren’t valid unless logged through Beams.
6. Insurance and safety
Builders must hold at least £5m public liability and £5m employer’s liability insurance. They’re also responsible for site health and safety and act as Principal Contractor and Principal Designer under CDM 2015.
7. Customer responsibilities
You’re responsible for securing valuables, providing access and parking, and obtaining the necessary permissions (planning, building control, party wall, landlord approvals). You must make sure your home insurance covers renovation works.
8. Warranties and protection
Your builder guarantees their workmanship for one year after practical completion — the point when the works are finished and usable, with only minor snagging left. You also have rights under the Consumer Rights Act 2015.
7. Termination and disputes
Either party can end the contract if the other side seriously breaks its obligations — for example, persistent non-payment, refusal to carry out agreed work, or blocking access to the site. If the issue isn’t fixed within seven days after being raised, the contract can be terminated.
Key protections for customers
- Clear pricing and milestone breakdowns before signing
- 14-day cooling-off period
- Refund of unused funds if you cancel
- Seven-day window to dispute any milestone
- Funds held securely and released only when you approve milestones
- One-year workmanship warranty
- Transparent, documented change process
- All messages, payments, and records in one place
Preview the contract
You can read the latest template here [PDF link]. Your final HIC will include your builder’s details, agreed scope, final price, dates, and payment milestones.
The HIC protects both you and your builder — giving you clear expectations, safe payments, and a fair framework from first signature to final sign-off.