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.
The Broward Florida Construction Contract for Home — Fixed Fee or Cost Plus refers to the legally binding agreement between a homeowner and a construction contractor in Broward County, Florida. This contract aims to clearly outline the terms, conditions, and expectations for a residential construction project. Whether related to new home construction, remodeling, renovations, or additions, this contract provides clarity on the agreed-upon payment structure and responsibilities. The Fixed Fee Construction Contract is one of the commonly used types in Broward County. As the name suggests, this contract stipulates a predetermined, fixed fee for the entire project. It ensures that the homeowner pays a set amount for the construction work, regardless of any cost fluctuations or unforeseen circumstances during the project. The fixed fee contract provides cost certainty and protects the homeowner from potential budget overruns. On the other hand, the Cost Plus Construction Contract is another prevalent type employed in Broward County. This contract bases the payment structure on the actual costs incurred by the contractor, including labor, materials, and subcontractor fees, plus an agreed-upon percentage as the contractor's profit. It offers transparency to the homeowner, as they have visibility into the specific costs associated with their project. Cost Plus contracts are suitable when there is unpredictability in project scope or when the homeowner desires full control over the construction process. When selecting a Broward Florida Construction Contract for Home, it's crucial to determine the type that aligns with the homeowner's needs, preferences, and budget. Both Fixed Fee and Cost Plus contracts have their own advantages and considerations. Homeowners should review the specifics of each contract, including payment terms, change order procedures, warranty provisions, and completion deadlines. By entering into a detailed Broward Florida Construction Contract for Home — Fixed Fee or Cost Plus, both homeowners and contractors can ensure a mutually beneficial and legally compliant agreement. It safeguards the interests of both parties and promotes transparency, accountability, and efficient project completion.The Broward Florida Construction Contract for Home — Fixed Fee or Cost Plus refers to the legally binding agreement between a homeowner and a construction contractor in Broward County, Florida. This contract aims to clearly outline the terms, conditions, and expectations for a residential construction project. Whether related to new home construction, remodeling, renovations, or additions, this contract provides clarity on the agreed-upon payment structure and responsibilities. The Fixed Fee Construction Contract is one of the commonly used types in Broward County. As the name suggests, this contract stipulates a predetermined, fixed fee for the entire project. It ensures that the homeowner pays a set amount for the construction work, regardless of any cost fluctuations or unforeseen circumstances during the project. The fixed fee contract provides cost certainty and protects the homeowner from potential budget overruns. On the other hand, the Cost Plus Construction Contract is another prevalent type employed in Broward County. This contract bases the payment structure on the actual costs incurred by the contractor, including labor, materials, and subcontractor fees, plus an agreed-upon percentage as the contractor's profit. It offers transparency to the homeowner, as they have visibility into the specific costs associated with their project. Cost Plus contracts are suitable when there is unpredictability in project scope or when the homeowner desires full control over the construction process. When selecting a Broward Florida Construction Contract for Home, it's crucial to determine the type that aligns with the homeowner's needs, preferences, and budget. Both Fixed Fee and Cost Plus contracts have their own advantages and considerations. Homeowners should review the specifics of each contract, including payment terms, change order procedures, warranty provisions, and completion deadlines. By entering into a detailed Broward Florida Construction Contract for Home — Fixed Fee or Cost Plus, both homeowners and contractors can ensure a mutually beneficial and legally compliant agreement. It safeguards the interests of both parties and promotes transparency, accountability, and efficient project completion.
