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.
Kings New York Construction Contract for Home — Fixed Fee or Cost Plus In Kings New York, the construction industry is thriving, and homeowners are constantly seeking trustworthy and transparent contracts for their home construction projects. Kings Construction offers two main types of contracts for residential projects — Fixed Fee and Cost Plus. 1. Fixed Fee Contract: A Fixed Fee contract with Kings Construction provides homeowners with a clear and predetermined cost for the entire project. The contract includes a detailed description of the work to be performed, project specifications, and timelines. The fixed fee is agreed upon at the beginning and ensures that homeowners have a concise understanding of the total cost they will be responsible for. This type of contract is particularly suitable for those who prefer financial stability and want to avoid unforeseen expenses during the construction process. 2. Cost Plus Contract: Kings Construction also offers a Cost Plus contract option, which allows homeowners to pay for the actual costs of construction plus a predetermined percentage fee. This transparent approach ensures that homeowners have complete visibility into the project expenses. Cost Plus contracts are beneficial when there is potential for changes or customization throughout the construction phase, as it provides more flexibility in accommodating alterations or upgrades. With a Cost Plus contract, homeowners have a closer involvement in decision-making and can benefit from potential cost savings during the project. Regardless of the contract type, Kings New York Construction prioritizes open communication, quality workmanship, and adherence to agreed-upon timelines. Each contract is tailored to the specific needs and preferences of the homeowner, offering a customized solution for every project. Keywords: Kings New York, construction contract, home construction, fixed fee, cost plus, residential projects, predetermined cost, project specifications, timelines, financial stability, unforeseen expenses, customization, transparent, project expenses, flexibility, decision-making, workmanship, open communication, tailored solution.Kings New York Construction Contract for Home — Fixed Fee or Cost Plus In Kings New York, the construction industry is thriving, and homeowners are constantly seeking trustworthy and transparent contracts for their home construction projects. Kings Construction offers two main types of contracts for residential projects — Fixed Fee and Cost Plus. 1. Fixed Fee Contract: A Fixed Fee contract with Kings Construction provides homeowners with a clear and predetermined cost for the entire project. The contract includes a detailed description of the work to be performed, project specifications, and timelines. The fixed fee is agreed upon at the beginning and ensures that homeowners have a concise understanding of the total cost they will be responsible for. This type of contract is particularly suitable for those who prefer financial stability and want to avoid unforeseen expenses during the construction process. 2. Cost Plus Contract: Kings Construction also offers a Cost Plus contract option, which allows homeowners to pay for the actual costs of construction plus a predetermined percentage fee. This transparent approach ensures that homeowners have complete visibility into the project expenses. Cost Plus contracts are beneficial when there is potential for changes or customization throughout the construction phase, as it provides more flexibility in accommodating alterations or upgrades. With a Cost Plus contract, homeowners have a closer involvement in decision-making and can benefit from potential cost savings during the project. Regardless of the contract type, Kings New York Construction prioritizes open communication, quality workmanship, and adherence to agreed-upon timelines. Each contract is tailored to the specific needs and preferences of the homeowner, offering a customized solution for every project. Keywords: Kings New York, construction contract, home construction, fixed fee, cost plus, residential projects, predetermined cost, project specifications, timelines, financial stability, unforeseen expenses, customization, transparent, project expenses, flexibility, decision-making, workmanship, open communication, tailored solution.
