Most contract builders prefer to sign a construction contract. There have been cases where people flout unwritten agreements, and because they are not documented, no one is held accountable. If you want to build your new home, you can hire a contract builder to execute your plans but keep in mind that you need a construction contractor.
In this article, you’ll learn about the basic elements of a construction contract. Here are some of them:
Name of contractor and more information
First, you need to ensure you’re dealing with licensed personnel. This section includes the license number, name, email address, phone number, and a verifiable company address.
Name of the homeowner
Just as there are dubious builders, you also have dubious homeowners. This section contains the name, email address, phone number, and the property’s address. You also need to prove that you own the said property.
Cost
What projects do you want to execute? You need to list them out and decide the amount and how you intend to pay. Would you pay in full or installment? If you would pay in bits, record the due dates to avoid arguments in the future.
Describe how a contract may be terminated
Sometimes we think we are ready to execute a task, but our plans do not pull through along the line. While you have made part payment for the job, something may go wrong along the way. It may cut your finances, thereby incapacitating you. How should a contract be terminated in the event that a homeowner cannot pay? It should be written clearly on the paper.
Describe the completion date
It is not enough to outline the job at hand; you should go a step further set a completion date that the builder must keep. The date is set in collaboration with both parties after considering all the factors. If the builder fails to deliver at the agreed date, they must notify you else, they have fallen short of the contract.
The right to stop work or withhold payment
If you don’t pay your contractor as and when due, it is their right to stop work and terminate the contract. If you don’t find their work satisfactory, you can also withhold the payment. This right for both parties is only possible if they have agreed to it.
Acts of God
We cannot rule out the fact that natural disasters can happen at any time. Since we can’t control them, we only hope and wish they don’t happen. What would both parties do when there is a disaster like a winter storm, flood, or hurricane? You should state how both parties plan to manage the situation to avoid problems in the future.
A standard construction contract contains these clauses above and more. Ensure you start one before you hire a contract builder.
