Yes. But building projects are done without one. Some turn out well. Because of, at least, these five factors:- Firstly, construction drawings are comprehensive, complete, clear and easy to build from. Secondly, there is no customer change, during construction, in what’s to be built . Thirdly, communication is efficient. Fourthly because there are no changes for reasons beyond the control of builder or customer. And fifthly because customer and builder trust each-other. Of course not all these factors apply. Issues can arise.
So do sign a contract with your builder. Which helps manage the normal issues which often do arise. It controls cost and quality. And guides everyone on all essential requirements. For example, on insurances.
There are several, simple, contract formats for the smallest construction project. Such as those on the websites of JCT, RICS and RIBA. An architect administers the contact if you don’t want to. Are you thinking of signing a contract made up by a builder? If so, get a qualified construction-lawyer to check it out first.
Beware of builders who don’t want to sign a contract (and often ask for an up-front deposit). Usually because it commits them to a price and program. If the construction information is proper in all respects a capable builder should be confident in pricing it. Rather than just giving you an estimate. They should also be confident in devising and managing a program to deliver on time.
Remember that a proper contract is a useful tool to manage change in both price and program. And it’s a checklist of all the key requirements for safety and a successful outcome.
Finally. The insurer of your house, who you must notify of your alterations and extensions to it, usually insists on a formal construction contract. As will a lender.