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.
Nassau New York Construction Contract for Home — Fixed Fee or Cost Plus A construction contract is an essential document that outlines the terms, conditions, and scope of a construction project. When it comes to Nassau County, New York, homeowners seeking to embark on construction projects typically have two popular contract options: Fixed Fee or Cost Plus contracts. Fixed Fee Construction Contract: A Fixed Fee construction contract is a binding agreement between the homeowner and the contractor, where the total cost of the project is predetermined and remains fixed throughout the construction process. This type of contract is commonly preferred by homeowners who wish to have a clear understanding of their project's costs from the beginning, providing cost certainty and budget control. Keywords: fixed fee, Nassau, New York, construction contract, homeowners, total cost, predetermined, cost certainty, budget control. Cost Plus Construction Contract: A Cost Plus construction contract, also known as a cost-reimbursable contract, is an agreement where the homeowner agrees to pay the contractor for the actual costs incurred during the construction process. This includes the cost of labor, materials, equipment, and subcontractors, along with a negotiated percentage for overhead and profit. Unlike the Fixed Fee contract, the total cost of the project is not predetermined, making it a suitable option for projects with uncertain scopes or extensive changes during construction. Keywords: cost plus, Nassau, New York, construction contract, actual costs, labor, materials, equipment, subcontractors, negotiated percentage, overhead, profit, uncertain scopes, extensive changes. Other types of Construction Contracts in Nassau County: Apart from the Fixed Fee and Cost Plus contracts, other types of construction contracts may be applicable in Nassau County, depending on the specific project requirements and homeowner's preferences. These may include Time and Materials contracts, Lump-Sum contracts, and Design-Build contracts. Each of these contract types offers unique advantages and considerations, catering to different project scopes, budgets, timelines, and risk-sharing arrangements. When navigating Nassau County's construction industry, homeowners should carefully review and negotiate the terms of the construction contract with the contractor, ensuring clarity, accountability, and legal protection for both parties involved. It is recommended to consult with legal professionals or construction experts in Nassau County for guidance on contract selection and customization to meet individual project needs and mitigate potential risks. Keywords: Nassau County, construction industry, homeowners, terms, clarity, accountability, legal protection, legal professionals, construction experts, contract selection, customization, individual project needs, mitigate risks.Nassau New York Construction Contract for Home — Fixed Fee or Cost Plus A construction contract is an essential document that outlines the terms, conditions, and scope of a construction project. When it comes to Nassau County, New York, homeowners seeking to embark on construction projects typically have two popular contract options: Fixed Fee or Cost Plus contracts. Fixed Fee Construction Contract: A Fixed Fee construction contract is a binding agreement between the homeowner and the contractor, where the total cost of the project is predetermined and remains fixed throughout the construction process. This type of contract is commonly preferred by homeowners who wish to have a clear understanding of their project's costs from the beginning, providing cost certainty and budget control. Keywords: fixed fee, Nassau, New York, construction contract, homeowners, total cost, predetermined, cost certainty, budget control. Cost Plus Construction Contract: A Cost Plus construction contract, also known as a cost-reimbursable contract, is an agreement where the homeowner agrees to pay the contractor for the actual costs incurred during the construction process. This includes the cost of labor, materials, equipment, and subcontractors, along with a negotiated percentage for overhead and profit. Unlike the Fixed Fee contract, the total cost of the project is not predetermined, making it a suitable option for projects with uncertain scopes or extensive changes during construction. Keywords: cost plus, Nassau, New York, construction contract, actual costs, labor, materials, equipment, subcontractors, negotiated percentage, overhead, profit, uncertain scopes, extensive changes. Other types of Construction Contracts in Nassau County: Apart from the Fixed Fee and Cost Plus contracts, other types of construction contracts may be applicable in Nassau County, depending on the specific project requirements and homeowner's preferences. These may include Time and Materials contracts, Lump-Sum contracts, and Design-Build contracts. Each of these contract types offers unique advantages and considerations, catering to different project scopes, budgets, timelines, and risk-sharing arrangements. When navigating Nassau County's construction industry, homeowners should carefully review and negotiate the terms of the construction contract with the contractor, ensuring clarity, accountability, and legal protection for both parties involved. It is recommended to consult with legal professionals or construction experts in Nassau County for guidance on contract selection and customization to meet individual project needs and mitigate potential risks. Keywords: Nassau County, construction industry, homeowners, terms, clarity, accountability, legal protection, legal professionals, construction experts, contract selection, customization, individual project needs, mitigate risks.
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.
