Building Fairness- Navigating Contract Types through a Collaborative Lens
Following on from an exciting meeting with some clients that are looking to take their 12-home cohousing project forward to technical design and construction, I have been reflecting on the importance of selecting the right procurement route and how we can do more to promote fairness in the process
We recognise that successful housing developments - whether for a community land trust (CLT), cohousing group, or individual self-builders - are about more than just construction projects. They’re about fostering trust, shared purpose, and resilient relationships. Our experience and ethos demonstrates that the choice of contractual framework is a vital tool to support collaboration and fairness across project scales.
The way risks are shared and responsibilities allocated within these contracts significantly influences the social, financial, and emotional success for all involved. When contracts are designed with transparency and shared responsibility, they help build stronger relationships and better outcomes.
Understanding Different Contract Approaches
Various contractual frameworks can support community-led, self-build, or extension projects. Here are some real-world examples illustrating their application and lessons learned:
1. Bridport Cohousing – 53 Home Development with a Housing Association Partner
Overview: This project, a 53-home scheme, was delivered under a Design and Build (D&B) contract with a reputable local contractor with multiple funding bodies and a complex tenure structure.
Why D&B? The client's funding arrangements dictated the need for a fixed price contract and early early contractor input with integrated design responsibilities (ie reducing professional design fees prior to contract).
Outcome: This approach, with Barefoot Architects being novated to the contractor, fostered early collaboration, making it easier to deliver a community-focused scheme efficiently.
Lesson: For larger community projects, robust D&B arrangements can promote early teamwork and shared ownership, provided risks are managed carefully. Novation of the pre-planning architect, or keeping them on as Employers Agent is essential to ensure the clients' driving ambitions, ethos and key design moves are not lost.
2. Small Cohousing & Farmhouse Renovation Project
Overview: The development of three new homes including the renovation of an old farmhouse. Two stage tendering was used to ascertain early and competitive tenders. Following some design development with a preferred contractor, the client chose (against our advice) to pivot and employ a contracts manager under a Prime Cost (PC) contract, using the cost estimate of others to track progress.
Challenges: The project is at the early stages but is running into cost control issues, due to unforeseen expenses during the renovation and groundworks phase.
Reflection: The client is recognising the lack of cost control and is querying the management fee and OH&P allocated in the contract. Without contractural incentives to provide best value or speed, this arrangement relies a lot on trust. A Target Cost contract might have been more suitable, as it promotes shared risk and ongoing financial transparency.
Lesson: For renovations or projects where the work can not be entirely defined, a Target Cost approach encourages joint responsibility for costs, reducing surprises and fostering collaboration.
3. Self-Builder Commissioning a Custom Home or extension.
Overview: We often work with clients up to planning who want to save costs and manage the construction project themselves - commissioning builders to bring the bespoke designs to life. This, its fair to say, has come with mixed success.
Risks & Challenges: Without clear contractual arrangements, costs can escalate, and misunderstandings may arise regarding scope and responsibilities. A lack of up-front communication of design intent/product selection is the biggest pitfall, leading to time delays and work needing to be redone.
Best Practice: Adopting a suitable contract—such as a targeted or collaboratively managed contract—can help self-builders manage risks, control costs, and maintain transparency. A fixed price contract with a contract administrator controlling variations, costs and extensions of time is best for new homes – with all the design work done before works start of site! For extensions or renovation projects, where there is less certainty about elements of work, clear contracts ensure that scope, responsibilities, and costs are understood, helping avoid disputes and ensuring the project reflects the homeowner’s vision.
Bridport Cohousing construction
Supporting Fairness and Collaboration across All Scales
The principles demonstrated by these examples hold true whether you're developing a community scheme, renovating a farmhouse, or building your own home. The key is choosing or designing contractual arrangements that promote:
- Transparent communication and shared understanding
- Shared risk management and joint problem-solving
- Clear responsibilities and expectations
- Flexibility to adapt to unforeseen challenges
For self-builders and home owners undertaking extensions, thoughtful contracts are essential for managing personal investment and aspirations, just as they are in larger community projects.
In Conclusion
Creating homes that serve individual dreams or community ambitions hinges on selecting contracts that foster fairness, trust, and collaboration. Whether developing a multi-home scheme, renovating a historic farmhouse, or building a dream eco-home, the same principles apply: well-structured, transparent, and shared-responsibility agreements support better relationships, better outcomes, and more enduring satisfaction.
By embedding fairness and collaboration into contract choices—big or small—we can build not just houses, but resilient, connected communities and homes that truly reflect collective and personal purpose.