What is the Consumer Contracts Regulations 2013 cancellation right?

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give domestic (consumer) customers a 14-day right to cancel contracts entered into off-premises — which includes any contract signed at the customer's property. You must give the customer written notice of this right before the contract is concluded. If the customer asks you to start work within the 14-day period and then cancels, they must pay for work completed up to the point of cancellation. If you fail to inform the customer of their cancellation right, the cancellation period extends to 12 months — meaning the customer can cancel and demand a full refund for up to a year after the contract was made.

How long should a defects liability period be for electrical work?

For domestic work, a defects liability period of 12 months is standard and is the period recommended by Which? Trusted Traders and most trade bodies. During this period, you must rectify genuine defects in your workmanship at no additional charge. Note that a defect is a fault arising from poor workmanship or materials supplied by you — it does not cover damage caused by the customer or fair wear and tear. For commercial subcontract work, defects liability periods of 12 to 24 months are typical depending on the project type, and they run from the date of practical completion.

What should my payment terms say?

Your payment terms should state: when payment is due (e.g. "payment is due on practical completion" or "within 7 days of invoice"); how payment should be made (bank transfer preferred); what happens if payment is late (interest under the Late Payment of Commercial Debts (Interest) Act 1998 at 8 per cent above base rate for commercial contracts; your own stated rate for domestic customers); the deposit amount and when it is due; and for larger jobs, the stage payment milestones and amounts. For commercial subcontract work, payment terms are governed partly by the Housing Grants, Construction and Regeneration Act 1996 which sets minimum standards for payment timing that cannot be contracted out of.

Can I charge for a variation without the customer signing anything?

Technically you can carry out a variation based on a verbal instruction and then invoice for it, but recovering payment for uninstructed variations is very difficult without written evidence. The customer can simply deny that they asked for the additional work, and without written evidence you are in a "your word against theirs" situation. The correct process is: identify the additional work scope; issue a written variation order detailing the additional scope and price; get the customer's written acceptance (email confirmation is sufficient) before carrying out the work; and then include the variation in your final invoice.

What is retention in an electrical contract?

Retention is a percentage of each payment (typically 3 to 5 per cent) that the paying party withholds until the end of the defects liability period as security against incomplete or defective work. In domestic work, retention is uncommon — most homeowners pay in full on completion. In commercial subcontract work, retention is standard. Half of the retained amount is released at practical completion and the balance at the end of the defects liability period. Track your retention carefully across all contracts — it can represent a significant sum in aggregate. Note that there are ongoing legislative proposals (Retention Deposit Scheme) to reform how retention is held.

What dispute resolution options do I have if a customer refuses to pay?

For domestic customers, options include: formal letter before action (7 days notice of court proceedings); small claims court (claims up to £10,000 in England and Wales, online application via Gov.uk, court fee from £35); or a mediation service such as CEDR or Ombudsman Services. For commercial contracts, the Housing Grants, Construction and Regeneration Act 1996 gives you the right to adjudication at any time — an adjudicator's decision is binding within 28 days and enforceable through the courts. Adjudication is considerably faster than litigation and is the preferred route for commercial payment disputes.

BUSINESS GUIDE

Electrical Contractor Contracts: What to Include and Why

What to include in domestic customer contracts for electrical work — Consumer Contracts Regulations 2013, payment schedules, variation orders, defects liability periods, retention, and dispute resolution. Protect your business with professional documentation.

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13 min readUpdated 2026-05-18Andrew Moore, Founder of Elec-Mate

Written and reviewed by Andrew Moore, founder of Elec-Mate, against BS 7671:2018+A4:2026, IET Guidance Note 3 and the IET On-Site Guide.

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Key Takeaways

1The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require you to provide domestic customers with specific pre-contract information and a 14-day cancellation right for off-premises contracts. Failing to provide this information can render the contract unenforceable.
2A customer contract should clearly state what work is included, what is excluded, the total price, how variations will be charged, and when payment is due. Disputes arising from contracts are almost always about scope, price, or payment terms that were not clearly stated upfront.
3Variation orders must be agreed in writing before additional work is carried out. A signed variation order is the only reliable protection against a customer refusing to pay for work that was agreed verbally but not included in the original contract.
4A defects liability period (typically 12 months) is the period during which you remain responsible for rectifying defects in your workmanship at no charge to the customer. After this period, remedial work can be charged at your normal rate.
5For commercial subcontract work, retention (typically 3 to 5 per cent of contract value) is held by the main contractor until practical completion (50 per cent released) and end of the defects liability period (balance released). Track your retention carefully — it is a significant sum across multiple contracts.

01 · Business Guide

Why Written Contracts Matter for Electricians

Most disputes between electricians and customers arise from ambiguity about what was agreed — the scope of work, the price, who was responsible for making good, or when payment was due. A clear written contract, accepted before work begins, eliminates the vast majority of these disputes before they can arise.

Legal clarity — a signed written contract is the strongest evidence in any dispute. Without one, the case often comes down to your word against the customer's, and judges in the small claims court are reluctant to make findings of fact against customers when the contractor did not put the agreement in writing.
Professional credibility — customers who receive a professional written contract perceive the contractor as more competent and trustworthy. A typed contract with clear terms is one of the most cost-effective ways to differentiate yourself from informal tradespeople.
Regulatory compliance — the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require specific pre-contract information to be provided to domestic customers. A written contract is the natural vehicle for providing this information.

For domestic work, your professional quote accepted by the customer is your contract. For commercial subcontract work, a formal written subcontract agreement is essential — see the subcontracting guide for what subcontract agreements should include.

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02 · Business Guide

Consumer Contracts Regulations 2013 — Your Obligations

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 are the primary legislation governing contracts between electricians and domestic customers. They were passed to implement the EU Consumer Rights Directive and remain in force in the UK after Brexit.

Pre-contract information — before any contract is concluded you must provide the customer with: your identity and business address; a description of the services; the total price (or how it will be calculated if not known); the arrangements for payment; how long the contract will last; the customer's cancellation rights; and the existence of your workmanship guarantee.
14-day cancellation right — for off-premises contracts (signed at the customer's property), the customer has 14 days to cancel without penalty. You must give written notice of this right. If you fail to do so, the cancellation period extends to 12 months.
Starting work in the cancellation period — if the customer asks you to start work within the 14-day period, they must give express written consent. If they then cancel, they must pay for work done up to the point of cancellation. Without written consent, you may not be able to charge for work started during the cancellation period.
Additional charges — you cannot add charges not disclosed before the contract was made. Any additional charges — for access equipment, parking, making good — must be disclosed in the pre-contract information if they are foreseeable.

03 · Business Guide

Essential Terms in Every Electrical Customer Contract

A domestic electrical customer contract should be clear enough that any reasonable person can understand what has been agreed without legal training. These are the essential terms that every contract must include.

Parties — your full company or trading name, address, and company/sole trader registration details. Customer's full name and the property address where the work will be carried out.
Scope of works — a detailed description of what is included. The more specific, the better. Reference to drawings or specifications if applicable. Cross-reference your quote document if it contains the detail.
Exclusions — what is explicitly not included: making good, asbestos removal, third-party connections, planning permissions, Building Regulations application fees (separate from your notification fee), furniture moving.
Price and payment terms — the contract sum, VAT treatment, deposit amount, stage payment schedule (if applicable), and final payment date.
Programme — anticipated start date, duration, and any key milestones. Include a statement that the programme may be affected by unforeseen site conditions.
Certification — confirm the electrical certificates you will provide on completion (Electrical Installation Certificate, Building Regulations compliance notification under Part P).
Guarantee — the duration and scope of your workmanship guarantee. Distinguish between workmanship (your responsibility) and product failure (manufacturer's warranty).
Cancellation rights — the customer's statutory 14-day cancellation right (Consumer Contracts Regulations 2013) and what happens if they exercise it after work has begun.

04 · Business Guide

Payment Schedules for Electrical Work

A payment schedule sets out how and when the customer will pay throughout the project. For domestic work, a staged payment schedule protects your cashflow and reduces the risk of non-payment at the end of a project.

Small domestic jobs (under £1,000) — full payment on completion. A deposit is not usually expected by customers on small jobs, and requesting one can seem unusual. Invoice promptly on completion.
Medium domestic jobs (£1,000 to £5,000) — 25 to 30 per cent deposit on acceptance, balance on practical completion. For jobs lasting more than one week, consider a mid-project payment at a defined milestone (e.g. completion of first fix).
Larger domestic jobs (rewires, extensions) — 30 per cent deposit, 30 per cent at first fix, 30 per cent at second fix, 10 per cent on practical completion and handover of certificates. This structure reflects the actual cost profile of electrical installation work.
Commercial subcontract work — the Housing Grants, Construction and Regeneration Act 1996 requires interim payments at intervals of not less than 28 days. Your payment application must be submitted in accordance with the subcontract programme. See the subcontracting guide for your full payment rights.

05 · Business Guide

Variation Orders — Protecting Your Revenue

Variations (changes to the original agreed scope) are the most common source of revenue loss for electricians who do not use written variation orders. Customers frequently request additional work verbally during a job, and then refuse to pay for it at the end because "it was just a small extra".

The variation order process — when additional work is requested: (1) pause and agree the scope of the additional work; (2) issue a written variation order with the scope and price; (3) get customer acceptance in writing before starting; (4) carry out the work; (5) include the variation on the invoice.
Email is sufficient — a variation order does not need to be a formal document. An email from you describing the additional scope and price, followed by a reply from the customer accepting it, is a binding variation. Screenshot or save all such exchanges.
What your terms should say — your standard terms should include a clause stating that any additional work outside the agreed scope will be charged at your stated day rate plus materials, and that no additional work will be carried out without a signed or email-confirmed variation order.
Unforeseen conditions — distinguish between variations requested by the customer and additional costs arising from unforeseen conditions (concealed wiring in worse condition than visible inspection suggested, asbestos, hidden structural elements). Unforeseen conditions are not variations — they are a change in contract price that should be addressed through your assumptions clause.

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06 · Business Guide

Defects Liability Period

A defects liability period (DLP) is the period after practical completion during which you remain responsible for rectifying genuine defects in your workmanship at no charge to the customer. It is distinct from a manufacturer's product warranty.

Standard DLP — 12 months — for domestic electrical work, 12 months is the standard and the period recommended by NICEIC, NAPIT, and most consumer protection organisations. State the DLP clearly in your contract: "Elec-Mate provides a 12-month guarantee against defects in workmanship from the date of practical completion."
What constitutes a defect — a defect is a fault arising from poor workmanship, incorrectly specified materials (where you chose the specification), or materials supplied by you that are not fit for purpose. It does not include: fair wear and tear; damage caused by the customer or third parties; faults in materials supplied by the customer; or faults in existing electrical installations that were not part of your scope.
Manufacturer's warranty — electrical products (consumer units, luminaires, sockets) carry their own manufacturer's warranties, typically 2 to 5 years. Product failure within the manufacturer's warranty period is a claim against the manufacturer, not necessarily against you (unless you supplied the product and made the selection).

07 · Business Guide

Retention in Commercial Electrical Contracts

Retention is a common feature of commercial subcontract electrical work. Understanding how retention works, how it is released, and how to track it across multiple contracts is essential for cashflow management.

Typical retention rates — 3 to 5 per cent of the gross value of each interim payment application. The retention is deducted from each payment and held by the main contractor. On a £200,000 electrical subcontract at 5 per cent retention, £10,000 is held.
Release — half the retention (e.g. £5,000) is typically released at practical completion of your section. The balance (e.g. £5,000) is released at the end of the defects liability period, usually 12 months after practical completion. Chase retention release actively — main contractors do not always release retention without prompting.
Retention reform — there are ongoing proposals for a Retention Deposit Scheme in the UK construction industry that would require retention to be held in a protected account rather than by the main contractor. Monitor industry developments — this would significantly reduce the risk of losing retention through main contractor insolvency.

08 · Business Guide

Dispute Resolution for Electrical Contractors

Despite the best contracts, disputes sometimes arise. Knowing your options — and using the least costly and most appropriate one — is essential for any electrical business.

Letter before action — always the first step. A formal letter stating the amount owed, the basis of the claim, and that you will take court action within 14 days if unpaid. Many disputes resolve at this stage without further action.
Small claims court — for domestic disputes up to £10,000 (England and Wales). Online application via Gov.uk Money Claim Online. Court fees from £35 to £455 depending on claim value. No legal representation required. Usually resolved within 6 to 12 months.
Adjudication — for commercial subcontract disputes under the Housing Grants, Construction and Regeneration Act 1996. An adjudicator's decision is usually reached within 28 days of referral and is immediately enforceable. The fastest and most cost-effective route for commercial payment disputes.
Mediation — a voluntary process where both parties attempt to reach agreement with the assistance of a neutral mediator. Courts actively encourage mediation before litigation. Services include CEDR, the Civil Mediation Council, and sector-specific mediators.

09 · Business Guide

Contract and Documentation Tools for Electricians

The most effective contracts for electricians are those that are used consistently — the same professional template on every job. Elec-Mate provides the tools to build and manage your customer documentation efficiently.

Professional Quotes as Contracts

Use the Elec-Mate quoting app to generate professional quotes that double as customer contracts, including payment terms, exclusions, and guarantee statements. Export to PDF and email direct from site. See the quote writing guide for what to include.

RAMS and H&S Documentation

Complete your H&S documentation alongside your customer contracts using the Elec-Mate RAMS generator. Keep your H&S policy, risk assessments, and method statements current and professional. See the H&S audit guide for full details.

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Frequently Asked Questions About Electrical Contractor Contracts

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Electrical Contractor Contracts: What to Include and Why

Key Takeaways

Why Written Contracts Matter for Electricians

Get the BS 7671 A4:2026 Cheat Sheet — free

Consumer Contracts Regulations 2013 — Your Obligations

Essential Terms in Every Electrical Customer Contract

Payment Schedules for Electrical Work

Variation Orders — Protecting Your Revenue

Price the job in minutes, not evenings

Defects Liability Period

Retention in Commercial Electrical Contracts

Dispute Resolution for Electrical Contractors

Contract and Documentation Tools for Electricians

Professional Quotes as Contracts

RAMS and H&S Documentation

Manage customer contracts and documentation with Elec-Mate

Frequently Asked Questions About Electrical Contractor Contracts

Do I need a written contract for electrical work?

What is the Consumer Contracts Regulations 2013 cancellation right?

How long should a defects liability period be for electrical work?

What should my payment terms say?

Can I charge for a variation without the customer signing anything?

What is retention in an electrical contract?

What dispute resolution options do I have if a customer refuses to pay?

Continue reading

Quote Writing Guide

Subcontracting Guide

Tender Writing Guide

H&S Audit Guide

Framework Contracts

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