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 Harris Texas Construction Contract for Home — Fixed Fee or Cost Plus is a legal agreement between a homeowner and a construction contractor that outlines the terms and conditions regarding the construction or renovation of a residential property in Harris County, Texas. This comprehensive contract protects both parties and ensures that all aspects of the project are clearly defined and agreed upon. In a Fixed Fee contract, the contractor agrees to complete the project for a predetermined, fixed amount of money. This type of contract provides certainty to the homeowner regarding the project's cost, preventing any unforeseen expenses and financial surprises. The contractor bears the risk of cost overruns and is responsible for managing the project within the agreed-upon budget. On the other hand, a Cost Plus contract allows the contractor to be reimbursed for the actual costs incurred during the project, including materials, labor, and other related expenses. The homeowner agrees to pay the contractor an agreed-upon percentage or fee on top of the actual costs. This type of contract is often preferred when the scope of work is unclear, and potential changes or additional work may arise throughout the construction process. In both types of contracts, it is crucial to include specific details such as project timelines, payment schedules, responsibilities of each party, warranty provisions, dispute resolution mechanisms, and any applicable local building codes and regulations. The contract should also address important considerations such as permits, inspections, scope of work, change orders, and provisions for unforeseen circumstances or delays. By having a well-drafted Harris Texas Construction Contract for Home — Fixed Fee or Cost Plus, homeowners can ensure that their construction projects are carried out smoothly, within budget, and in compliance with legal requirements. It provides transparency, clarity, and protection for both parties involved, minimizing the risk of disputes and conflicts. Whether opting for a Fixed Fee or a Cost Plus contract, it is essential to consult legal professionals who specialize in construction law to ensure the contract meets all necessary legal standards and adequately addresses the specifics of the project.The Harris Texas Construction Contract for Home — Fixed Fee or Cost Plus is a legal agreement between a homeowner and a construction contractor that outlines the terms and conditions regarding the construction or renovation of a residential property in Harris County, Texas. This comprehensive contract protects both parties and ensures that all aspects of the project are clearly defined and agreed upon. In a Fixed Fee contract, the contractor agrees to complete the project for a predetermined, fixed amount of money. This type of contract provides certainty to the homeowner regarding the project's cost, preventing any unforeseen expenses and financial surprises. The contractor bears the risk of cost overruns and is responsible for managing the project within the agreed-upon budget. On the other hand, a Cost Plus contract allows the contractor to be reimbursed for the actual costs incurred during the project, including materials, labor, and other related expenses. The homeowner agrees to pay the contractor an agreed-upon percentage or fee on top of the actual costs. This type of contract is often preferred when the scope of work is unclear, and potential changes or additional work may arise throughout the construction process. In both types of contracts, it is crucial to include specific details such as project timelines, payment schedules, responsibilities of each party, warranty provisions, dispute resolution mechanisms, and any applicable local building codes and regulations. The contract should also address important considerations such as permits, inspections, scope of work, change orders, and provisions for unforeseen circumstances or delays. By having a well-drafted Harris Texas Construction Contract for Home — Fixed Fee or Cost Plus, homeowners can ensure that their construction projects are carried out smoothly, within budget, and in compliance with legal requirements. It provides transparency, clarity, and protection for both parties involved, minimizing the risk of disputes and conflicts. Whether opting for a Fixed Fee or a Cost Plus contract, it is essential to consult legal professionals who specialize in construction law to ensure the contract meets all necessary legal standards and adequately addresses the specifics of the project.
