RICOP Construction Blog UNDERSTANDING YOUR BUILDING CONTRACT

At times new construction projects may turn to be complicated. Before the project begins, a contract should be drawn up. The contract would act as a guide for the contractor to follow during the construction and at the same time protect you from future verbal disputes that may arise. Since you want your home to be constructed using a specific design and completed within a specific period of time, you must be ready to face different challenges while signing a contract with your constructor. The main contractor and sub-contractor may have different ideas with yours hence making the negotiation process totally tiring. A good constructor who seriously wants your business will always come into an agreement with you after negotiations. What are the exact facts you need to know and steps you can follow in order to write a good contract?The first thing you might consider doing before signing the new contract is doing some research. Review the contractors' reputation and track records. Check with your state's construction contractor board to confirm if the company is good and is licensed properly. Apart from that, you might try examining samples of construction home agreements. By doing this, you might find out about issues that you wouldn't have known otherwise. Use the information that you now have as a guideline for writing the contract.The first thing your contract should have is the date. This is a must in any contract in order to be considered legal. Clearly state the name of both parties. Other information details that should be included are phone numbers, fax numbers, email addresses and any other valid contact of your constructor and yourself. The contract should also include detailed information about the property such as the street address and any other that is necessary.State the monetary value of the contract and list all the financing terms. All the allowances that will be received by the constructor should be included here. These allowances might include the amounts of carpets, electrical fixtures and cabinets. It is important to note in the contract the procedure you would to be followed when you want something to be changed during construction. Usually such changes leads to additional fees.The starting date and completion date of the project should appear in the contract. These time lines help your constructor to plan how the construction would be done effectively. Negotiate with the constructor and agree on matters such as the style and design of your home. Remember that signing the contract means that both parties have agreed on the terms stated in it.