You decided to build a house and talk to several builders and contractors and compare their cost and estimates. After you chosen the right contractor for your house, the builders or contractors will provides a construction contract based on your verbal agreement. This agreement includes the floor layout, home finishes and fixtures, materials specification and time frame.
It is advisable to review and understand the construction before signing. If you are not knowledgeable about the standard specification for your house, you can get the help of the expert.
Here are some things to look for before signing a construction contract:
1. Scope of Work
It describes the work agrees to perform by the contractor from the beginning such obtaining building permit, furnishing labor, materials, equipment and other services for the construction of the house. It also contains the drawing and specification to be used that should conform to house plan.
2. Specification of Material
It contains the specification of the materials to be used in the construction. Consider hiring professional to review the plans and specification to make sure that the contractor put the right specification on your house.
3. Time Frame
Time when the house construction will be completed should be indicated in the contract. The schedule of work should follow by the contractor. Cause of delays includes poor weather, delay payment of the owner, inspection delay by the municipal, labor strikes and other issues.
4. Payment
The terms of payment should be included in the contract so that the owner may know when and how will pay the contractor. It indicated the payment schedule so that the house may built in a timely manner. A regular contract will require an initial payment prior to construction. A contractor may also submit a report of work completion to the owner and this will be the basis for the payment.
5. Warranty
The contract may contain the type of defects that will take care of the contractor later after the construction. It indicated how long the warranty lasts and type of maintenance obligations of the owner and what the contractor requires to fix the defects if any.