This form is a Construction Contract. The form contains the following subjects: scope of work, work site, and insurance. The contractor's warranty is limited to defects in workmanship within the scope of the work performed by the contractor.
What is a Construction contract agreement?
If you’re planning to build, renovate or reconstruct your house, you will need to enter into a contract for home construction with the building contractor, defining your mutual rights and responsibilities. This agreement contains project specifics, the contractor’s license and insurance details, the requested scope of work, etc. It may also determine the potential lien on the property should the work not be paid in full.
Types of construction contracts
Depending on the payment arrangements determined by parties, there are four basic types of home builders’ contracts:
1. Fixed price (or lump-sum) agreements set the price for the completed job right from the start. Although fixed, the document may also include provisions defining penalties (for example, if the constructor fails to finish the work on schedule).
2. Cost plus construction agreements set the price for the finished work based on building materials and labor with additionally mentioned “plus” (a percentage of the total costs or a fixed fee).
3. Time and material agreements set the price for the work without a “plus,” but the client pays the contractor a daily or hourly rate while they are under contract.
4. Unit-price agreements are standard in bidding, particularly for federal building projects. Both owner and contractor define the price that the contractor charges for a standard unit without any specific extra fees for other units.
The first two types of contract for home construction mentioned are the most popular ones. Let’s take a closer look at them.
Fixed price vs. cost-plus contract benefits
The fixed price agreement benefits owners more than builders, as it determines at the moment the parties seal the deal the exact price the contractor will get after they complete all the work. Builders risk not getting the estimated profits they initially anticipated, as expenses may increase significantly but remain the constructor’s responsibility.
The cost-plus construction deal contains the evaluation of the final project cost; however, it doesn’t determine the final contract price until the contractor completes all the work. Unlike the fixed-price agreement, it separates expenses and sets the profit rate (as a percentage of the final project cost or as a flat amount), so contractors prefer this type of agreement; it is riskier for homeowners.
Information you should provide in the construction contract agreement
The presented Construction Contract for Home is a universal multi-state construction contract template. This sample describes typical terms for a home building contract. Download a printable document version from our website or amend and fill it out online. Make sure to provide the following information:
• Name and contact details of the contractor and their license number;
• Name and contact details of the homeowner;
• Property legal description from county clerk’s records;
• Project description with blueprints and building specifications;
• Scope, description of work, and its estimated final dates;
• Costs of work and responsibilities of parties for any breach of contract.
Fairfax Virginia Construction Contract for Home — Fixed Fee or Cost Plus When embarking on a home construction project in Fairfax, Virginia, it is crucial to establish a comprehensive construction contract to ensure a smooth execution of the project. Contracts bind both the homeowner and the contractor and dictate the terms and conditions regarding project scope, payment, timelines, and dispute resolution. In Fairfax, homeowners have the option to choose between two popular types of construction contracts: Fixed Fee and Cost Plus. Fixed Fee Construction Contract: A Fixed Fee construction contract in Fairfax, Virginia, involves an agreement wherein the homeowner and the contractor agree upon a predetermined fixed price for the construction project. This contract type is more suitable for well-defined projects with minimal changes or variations throughout the construction process. The contractor is responsible for completing the project within the agreed budget, covering all costs and potential cost overruns. This type of contract provides homeowners with a clear understanding of the total project cost upfront, allowing for better financial planning. Cost Plus Construction Contract: A Cost Plus construction contract in Fairfax, Virginia, is an agreement where the homeowner agrees to reimburse the contractor for all expenses incurred during the construction process. This contract type is ideal for projects with significant uncertainties, complexities, or where changes in design or material choices are expected. Cost Plus contracts provide transparency, as homeowners are informed about the actual cost of materials, labor, subcontractors, permits, and other relevant expenses. Contractors charge a predetermined percentage or fixed fee on top of the actual construction costs as compensation for their services. It's essential to understand that both types of contracts have their advantages and considerations for homeowners. Fixed Fee contracts provide certainty in terms of project cost, while Cost Plus contracts offer flexibility for modifications during construction. Homeowners should carefully evaluate the nature of their project, their level of involvement, budget constraints, and risk tolerance before opting for a specific contract. Choosing the right construction contract type helps homeowners set clear expectations, avoid potential disputes, and ensure that their dream home in Fairfax, Virginia, is constructed within their budget and timeline. Consulting with experienced construction professionals and legal advisors is recommended to navigate through the complexities of these contracts and make well-informed decisions.Fairfax Virginia Construction Contract for Home — Fixed Fee or Cost Plus When embarking on a home construction project in Fairfax, Virginia, it is crucial to establish a comprehensive construction contract to ensure a smooth execution of the project. Contracts bind both the homeowner and the contractor and dictate the terms and conditions regarding project scope, payment, timelines, and dispute resolution. In Fairfax, homeowners have the option to choose between two popular types of construction contracts: Fixed Fee and Cost Plus. Fixed Fee Construction Contract: A Fixed Fee construction contract in Fairfax, Virginia, involves an agreement wherein the homeowner and the contractor agree upon a predetermined fixed price for the construction project. This contract type is more suitable for well-defined projects with minimal changes or variations throughout the construction process. The contractor is responsible for completing the project within the agreed budget, covering all costs and potential cost overruns. This type of contract provides homeowners with a clear understanding of the total project cost upfront, allowing for better financial planning. Cost Plus Construction Contract: A Cost Plus construction contract in Fairfax, Virginia, is an agreement where the homeowner agrees to reimburse the contractor for all expenses incurred during the construction process. This contract type is ideal for projects with significant uncertainties, complexities, or where changes in design or material choices are expected. Cost Plus contracts provide transparency, as homeowners are informed about the actual cost of materials, labor, subcontractors, permits, and other relevant expenses. Contractors charge a predetermined percentage or fixed fee on top of the actual construction costs as compensation for their services. It's essential to understand that both types of contracts have their advantages and considerations for homeowners. Fixed Fee contracts provide certainty in terms of project cost, while Cost Plus contracts offer flexibility for modifications during construction. Homeowners should carefully evaluate the nature of their project, their level of involvement, budget constraints, and risk tolerance before opting for a specific contract. Choosing the right construction contract type helps homeowners set clear expectations, avoid potential disputes, and ensure that their dream home in Fairfax, Virginia, is constructed within their budget and timeline. Consulting with experienced construction professionals and legal advisors is recommended to navigate through the complexities of these contracts and make well-informed decisions.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
