A building and construction contract must fulfill the same requirements as any other type of contract in regard to matters such as offer and acceptance, sufficiency of consideration, certainty, and the like. Such a contract generally provides not only for the construction of the project, but also for many matters that are incidental to the project. Thus, it may provide for the carrying of liability, workers' compensation, and fire insurance policies, designating which party is responsible for obtaining particular insurance. A building and construction contract will typically specify the duties, responsibilities, and liabilities of each of the parties, as well as those of any employed architect or engineer. The amount and method of compensation is, of course, an important part of such a contract.
Guam Construction Contract for New Residential Dwelling — A Detailed Description Introduction: A Guam Construction Contract for New Residential Dwelling is a legally binding agreement between the homeowner (client) and a construction company (contractor) in Guam. This contract outlines the terms and conditions under which the contractor will construct a new residential dwelling for the client. It serves as a crucial document that provides clarity, protection, and defines the rights and responsibilities of both parties involved in the construction process. Keywords: — Guam constructiocontractac— - New residential dwelling — Legally bindinagreementen— - Construction company — Homeowner - Terms and condition— - Protection — Rights and responsibilities Different Types of Guam Construction Contracts for New Residential Dwelling: 1. Lump Sum Contract: A lump sum contract is the most common form of construction contract used in Guam for new residential dwellings. It involves the contractor providing a fixed total price for the complete construction project. This means that the client pays a predetermined amount regardless of any changes or modifications that may occur during the construction process. 2. Cost Plus Fee Contract: The cost plus fee contract is another type of construction contract used in Guam. Under this arrangement, the client pays the actual costs incurred by the contractor during the construction process. These costs typically include materials, labor, equipment, and other expenses. Additionally, the contractor receives a pre-agreed fee on top of the total costs as compensation for their services. 3. Unit Price Contract: A unit price contract involves the pricing of specific construction elements or units. It breaks down the project into various components, and the contractor provides a unit price for each item. The final payment is calculated by multiplying the number of units by the respective unit price. This contract type is useful when there is uncertainty regarding the quantity of specific construction elements. Important Elements of a Guam Construction Contract for New Residential Dwelling: 1. Scope of Work: The contract must clearly define the scope of work, outlining all construction activities and deliverables. It should include architectural drawings, technical specifications, and a detailed description of the residential dwelling to be constructed. 2. Construction Schedule: The contract should establish a timeline for the construction project, including start and completion dates, milestone targets, and any penalties or incentives tied to timely project completion. 3. Payment Terms: The contract should outline the payment terms agreed upon by both parties. It should cover amounts, payment schedule, and any retention that may be held by the homeowner as security until the project is completed. 4. Change Order Procedures: Change orders refer to modifications or additions requested by the homeowner during construction. The contract should outline a procedure for approving and documenting change orders, including any adjustments to the project cost or schedule resulting from such changes. 5. Dispute Resolution: In the event of conflicts or disputes, it is essential to have a clause in the contract that specifies the preferred method for dispute resolution, such as mediation, arbitration, or litigation. Conclusion: A Guam Construction Contract for New Residential Dwelling is a crucial document that protects both the homeowner and the construction company during the construction process. By clearly defining the scope of work, payment terms, and dispute resolution procedures, this contract ensures a smooth and transparent relationship between the parties involved, leading to successful completion of the residential dwelling project.Guam Construction Contract for New Residential Dwelling — A Detailed Description Introduction: A Guam Construction Contract for New Residential Dwelling is a legally binding agreement between the homeowner (client) and a construction company (contractor) in Guam. This contract outlines the terms and conditions under which the contractor will construct a new residential dwelling for the client. It serves as a crucial document that provides clarity, protection, and defines the rights and responsibilities of both parties involved in the construction process. Keywords: — Guam constructiocontractac— - New residential dwelling — Legally bindinagreementen— - Construction company — Homeowner - Terms and condition— - Protection — Rights and responsibilities Different Types of Guam Construction Contracts for New Residential Dwelling: 1. Lump Sum Contract: A lump sum contract is the most common form of construction contract used in Guam for new residential dwellings. It involves the contractor providing a fixed total price for the complete construction project. This means that the client pays a predetermined amount regardless of any changes or modifications that may occur during the construction process. 2. Cost Plus Fee Contract: The cost plus fee contract is another type of construction contract used in Guam. Under this arrangement, the client pays the actual costs incurred by the contractor during the construction process. These costs typically include materials, labor, equipment, and other expenses. Additionally, the contractor receives a pre-agreed fee on top of the total costs as compensation for their services. 3. Unit Price Contract: A unit price contract involves the pricing of specific construction elements or units. It breaks down the project into various components, and the contractor provides a unit price for each item. The final payment is calculated by multiplying the number of units by the respective unit price. This contract type is useful when there is uncertainty regarding the quantity of specific construction elements. Important Elements of a Guam Construction Contract for New Residential Dwelling: 1. Scope of Work: The contract must clearly define the scope of work, outlining all construction activities and deliverables. It should include architectural drawings, technical specifications, and a detailed description of the residential dwelling to be constructed. 2. Construction Schedule: The contract should establish a timeline for the construction project, including start and completion dates, milestone targets, and any penalties or incentives tied to timely project completion. 3. Payment Terms: The contract should outline the payment terms agreed upon by both parties. It should cover amounts, payment schedule, and any retention that may be held by the homeowner as security until the project is completed. 4. Change Order Procedures: Change orders refer to modifications or additions requested by the homeowner during construction. The contract should outline a procedure for approving and documenting change orders, including any adjustments to the project cost or schedule resulting from such changes. 5. Dispute Resolution: In the event of conflicts or disputes, it is essential to have a clause in the contract that specifies the preferred method for dispute resolution, such as mediation, arbitration, or litigation. Conclusion: A Guam Construction Contract for New Residential Dwelling is a crucial document that protects both the homeowner and the construction company during the construction process. By clearly defining the scope of work, payment terms, and dispute resolution procedures, this contract ensures a smooth and transparent relationship between the parties involved, leading to successful completion of the residential dwelling project.
