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.
Hillsborough Florida Construction Contract for Home — Fixed Fee or Cost Plus In Hillsborough County, Florida, individuals looking to embark on a home construction project can choose between two common types of construction contracts: Fixed Fee or Cost Plus. These contracts serve as legally binding agreements between homeowners and contractors, outlining the scope of work, project timelines, and payment terms. Here, we will provide a detailed description of each contract type, along with their key features and differences. 1. Fixed Fee Construction Contract: A Fixed Fee Construction Contract in Hillsborough County, Florida, establishes a predetermined contract sum for the entire home construction project. This type of contract provides homeowners with a clear understanding of the total costs involved before the project commences. The contractor is responsible for delivering the project within the stipulated budget, regardless of any unforeseen circumstances or additional costs that may arise during the construction process. Homeowners usually opt for this contract when they have a well-defined scope of work and want to avoid any unexpected financial burdens. Key features of a Fixed Fee Construction Contract: — A pre-determined, fixed sum for the entire project. — Clearly defined project scope, including materials, labor, and any included amenities or finishes. — Contractors bear the risk for any cost overruns or unexpected expenses during construction. — Provides homeowners with a firm understanding of their financial commitments and budget constraints. — Usually suitable for projects with well-documented plans and minimal scope changes. 2. Cost Plus Construction Contract: A Cost Plus Construction Contract in Hillsborough County, Florida, involves the contractor charging the homeowner for the actual costs incurred during the construction, along with an additional agreed-upon amount as profit or fee. This type of contract provides homeowners with flexibility, especially in cases where the project scope is not fully defined or changes may arise during construction. Homeowners opting for this contract type should be prepared for potential variations in the final project cost as it depends on the total expenses incurred during construction. Key features of a Cost Plus Construction Contract: — Compensation is based on the actual costs of labor, materials, and other project-related expenses. — Contractors charge an agreed-upon percentage or fee on top of the actual costs. — Provides flexibility for homeowners to make changes or additions to the scope during construction. — Requires regular financial reporting of expenses to ensure transparency. — Typically suits projects with evolving designs, customizations, or uncertain project requirements. It is important to note that in Hillsborough County, Florida, these two contract types are the most common for home construction projects. However, some contractors may offer variations or customized versions of these contracts to better suit the specific needs of homeowners. Therefore, before entering into any construction contract, homeowners should thoroughly review and understand all clauses, including payment schedules, project timelines, and dispute resolution mechanisms, to protect their interests and ensure a successful construction endeavor.Hillsborough Florida Construction Contract for Home — Fixed Fee or Cost Plus In Hillsborough County, Florida, individuals looking to embark on a home construction project can choose between two common types of construction contracts: Fixed Fee or Cost Plus. These contracts serve as legally binding agreements between homeowners and contractors, outlining the scope of work, project timelines, and payment terms. Here, we will provide a detailed description of each contract type, along with their key features and differences. 1. Fixed Fee Construction Contract: A Fixed Fee Construction Contract in Hillsborough County, Florida, establishes a predetermined contract sum for the entire home construction project. This type of contract provides homeowners with a clear understanding of the total costs involved before the project commences. The contractor is responsible for delivering the project within the stipulated budget, regardless of any unforeseen circumstances or additional costs that may arise during the construction process. Homeowners usually opt for this contract when they have a well-defined scope of work and want to avoid any unexpected financial burdens. Key features of a Fixed Fee Construction Contract: — A pre-determined, fixed sum for the entire project. — Clearly defined project scope, including materials, labor, and any included amenities or finishes. — Contractors bear the risk for any cost overruns or unexpected expenses during construction. — Provides homeowners with a firm understanding of their financial commitments and budget constraints. — Usually suitable for projects with well-documented plans and minimal scope changes. 2. Cost Plus Construction Contract: A Cost Plus Construction Contract in Hillsborough County, Florida, involves the contractor charging the homeowner for the actual costs incurred during the construction, along with an additional agreed-upon amount as profit or fee. This type of contract provides homeowners with flexibility, especially in cases where the project scope is not fully defined or changes may arise during construction. Homeowners opting for this contract type should be prepared for potential variations in the final project cost as it depends on the total expenses incurred during construction. Key features of a Cost Plus Construction Contract: — Compensation is based on the actual costs of labor, materials, and other project-related expenses. — Contractors charge an agreed-upon percentage or fee on top of the actual costs. — Provides flexibility for homeowners to make changes or additions to the scope during construction. — Requires regular financial reporting of expenses to ensure transparency. — Typically suits projects with evolving designs, customizations, or uncertain project requirements. It is important to note that in Hillsborough County, Florida, these two contract types are the most common for home construction projects. However, some contractors may offer variations or customized versions of these contracts to better suit the specific needs of homeowners. Therefore, before entering into any construction contract, homeowners should thoroughly review and understand all clauses, including payment schedules, project timelines, and dispute resolution mechanisms, to protect their interests and ensure a successful construction endeavor.
