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.
A Franklin Ohio Construction Contract for Home is a legally binding agreement between a homeowner and a construction contractor in the Franklin, Ohio area. This contract outlines the terms and conditions of the construction project, including the scope of work, timelines, payment terms, and homeowner rights. There are two main types of Franklin Ohio Construction Contracts for Home, namely Fixed Fee and Cost Plus, each offering unique benefits and considerations for both the homeowner and contractor. 1. Fixed Fee Construction Contract: A Fixed Fee Construction Contract is based on a predetermined and fixed amount agreed upon by the homeowner and the contractor. This fee includes all expenses and costs associated with the construction project, such as materials, labor, permits, and overhead charges. This type of contract is commonly used when both parties have a clear understanding of the project's requirements and costs, ensuring that there are no unexpected budget overruns. Keywords: Franklin Ohio Construction Contract, Home, Fixed Fee, Terms and Conditions, Scope of Work, Timelines, Payment Terms, Homeowner Rights, Predetermined Amount, Materials, Labor, Permits, Overhead Charges, Budget Overruns. 2. Cost Plus Construction Contract: In a Cost Plus Construction Contract, the homeowner agrees to reimburse the contractor for all the costs incurred during the construction process, including materials, labor, equipment, and overhead expenses. Additionally, a predetermined fee, usually a percentage of the total cost, is included as compensation for the contractor's services. This type of contract provides more flexibility for unforeseen circumstances and allows changes to the scope of work during the construction process, but it requires transparent record-keeping and close communication to ensure fair reimbursement. Keywords: Franklin Ohio Construction Contract, Home, Cost Plus, Reimbursement, Materials, Labor, Equipment, Overhead Expenses, predetermined fee, Flexibility, Unforeseen Circumstances, Scope of Work, Transparent Record-Keeping, Communication, Fair Reimbursement. In conclusion, a Franklin Ohio Construction Contract for Home establishes the terms and conditions of a construction project and provides a clear understanding between the homeowner and the contractor. The choice between a Fixed Fee or Cost Plus contract depends on the project's requirements, budget constraints, and the level of flexibility needed. It is essential for both parties to carefully review and negotiate the terms of the contract to ensure a successful and satisfactory construction experience.A Franklin Ohio Construction Contract for Home is a legally binding agreement between a homeowner and a construction contractor in the Franklin, Ohio area. This contract outlines the terms and conditions of the construction project, including the scope of work, timelines, payment terms, and homeowner rights. There are two main types of Franklin Ohio Construction Contracts for Home, namely Fixed Fee and Cost Plus, each offering unique benefits and considerations for both the homeowner and contractor. 1. Fixed Fee Construction Contract: A Fixed Fee Construction Contract is based on a predetermined and fixed amount agreed upon by the homeowner and the contractor. This fee includes all expenses and costs associated with the construction project, such as materials, labor, permits, and overhead charges. This type of contract is commonly used when both parties have a clear understanding of the project's requirements and costs, ensuring that there are no unexpected budget overruns. Keywords: Franklin Ohio Construction Contract, Home, Fixed Fee, Terms and Conditions, Scope of Work, Timelines, Payment Terms, Homeowner Rights, Predetermined Amount, Materials, Labor, Permits, Overhead Charges, Budget Overruns. 2. Cost Plus Construction Contract: In a Cost Plus Construction Contract, the homeowner agrees to reimburse the contractor for all the costs incurred during the construction process, including materials, labor, equipment, and overhead expenses. Additionally, a predetermined fee, usually a percentage of the total cost, is included as compensation for the contractor's services. This type of contract provides more flexibility for unforeseen circumstances and allows changes to the scope of work during the construction process, but it requires transparent record-keeping and close communication to ensure fair reimbursement. Keywords: Franklin Ohio Construction Contract, Home, Cost Plus, Reimbursement, Materials, Labor, Equipment, Overhead Expenses, predetermined fee, Flexibility, Unforeseen Circumstances, Scope of Work, Transparent Record-Keeping, Communication, Fair Reimbursement. In conclusion, a Franklin Ohio Construction Contract for Home establishes the terms and conditions of a construction project and provides a clear understanding between the homeowner and the contractor. The choice between a Fixed Fee or Cost Plus contract depends on the project's requirements, budget constraints, and the level of flexibility needed. It is essential for both parties to carefully review and negotiate the terms of the contract to ensure a successful and satisfactory construction experience.
