What should a home construction contract include?

What should a home construction contract include?

Elements of a Construction Contract

• Name of contractor and contact information.
• Name of homeowner and contact information.
• Describe property in legal terms.
• List attachments to the contract.
• The cost.
• Failure of homeowner to obtain financing.
• Description of the work and the completion date.
• Right to stop the project.

What is a home construction contract?

A Residential Construction Contract is used to establish an agreement between a homeowner and contractor to ensure both parties are protected. The Contractor warrants that that he/she possesses the unique ability, knowledge, skills as may be necessary, to perform the Services provided for in this Agreement.

How do you protect yourself in a construction contract?

1. Document that all changes must be in writing and approved by both parties.
2. Require that all workers, including employees of contractors and subcontractors, will be bonded and insured.
3. Clearly state how disputes will be handled.
4. Contract should be signed and dated by both parties.
5. Have building plans attached.

How do I write a contractor contract?

Writing Your Construction Contract. Write the title and a little preamble. Your title should describe the purpose of the contract. The preamble should simply state basics like: the date the agreement was entered into, the parties’ names, the project, the work site location, and work commencement and end dates.

How does a construction contract work?

A construction contract agreement is a principal document that sets a date and specifies which parties are going to participate in the construction process. Usually, the contract agreement is executed between the owner of the project and the contractor (or supplier) that is providing the requested service.

How long is a construction contract good for?

The new 2017 AIA General Conditions of the Contract for Construction (AIA Document A201) defers to state statutes of limitation with respect to the time for claims to be made, however an outside date of 10 years from substantial completion is also specified, after which time the ability to bring a claim expires.

How much money should you give a contractor up front?

In California, the state limits advance payment at the time of contract signing to 10% of the total estimated job cost or $1,000, whichever amount is lower! All payments thereafter are supposed to be made for work performed or for materials delivered to the job site.

How do you write a simple construction contract?

What Should Be in a Construction Contract?

1. Identifying/Contact Information.
2. Title and Description of the Project.
3. Projected Timeline and Completion Date.
4. Cost Estimate and Payment Schedule.
5. Stop-Work Clause and Stop-Payment Clause.
6. Act of God Clause.
7. Change Order Agreement.
8. Warranty.