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 Wake North Carolina Construction Contract for Home can either be a Fixed Fee or Cost Plus contract, both of which are commonly used in the construction industry. These contracts outline the terms and conditions agreed upon between the homeowner and the contractor, ensuring a smooth and successful construction project. 1. Wake North Carolina Construction Contract for Home — Fixed Fee: The Fixed Fee contract is the most common type of construction contract used in Wake, North Carolina. It involves a predetermined fixed amount of money agreed upon between the homeowner and the contractor. This contract is ideal for homeowners who have a clear understanding of the project scope and want to avoid any unexpected expenses or variations. The Wake North Carolina Construction Contract for Home — Fixed Fee includes detailed information about the project, such as project plans, specifications, and a timeline for completion. 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This contract type provides homeowners with transparency as they have direct access to invoices and receipts, making it easier for them to track expenses. Keywords: Wake North Carolina, Construction Contract, Home, Cost Plus, actual cost, percentage, fee, labor, materials, expenses, transparency, invoices, receipts. 3. Wake North Carolina Construction Contract for Home — Combined Fixed Fee and Cost Plus: In some cases, homeowners and contractors may decide to utilize a combined Fixed Fee and Cost Plus contract for their construction project. This hybrid contract includes both a predetermined fixed fee and an agreed-upon percentage or fee based on the actual costs incurred during construction. The Wake North Carolina Construction Contract for Home — Combined Fixed Fee and Cost Plus provides a balance between fixed and variable costs, ensuring homeowners have the advantage of an upfront price while still allowing flexibility for unforeseen changes. This contract type is suitable for homeowners who desire a degree of cost certainty but also want to accommodate potential project alterations. Keywords: Wake North Carolina, Construction Contract, Home, Combined Fixed Fee and Cost Plus, hybrid contract, predetermined fee, percentage, variable costs, upfront price, flexibility, project alterations. In conclusion, whether it's a Wake North Carolina Construction Contract for Home — Fixed Fee or Cost Plus, homeowners have the option to choose the contract type that best suits their needs and preferences. These contracts protect both parties involved in the construction project and help ensure a successful and satisfactory outcome.A Wake North Carolina Construction Contract for Home can either be a Fixed Fee or Cost Plus contract, both of which are commonly used in the construction industry. These contracts outline the terms and conditions agreed upon between the homeowner and the contractor, ensuring a smooth and successful construction project. 1. Wake North Carolina Construction Contract for Home — Fixed Fee: The Fixed Fee contract is the most common type of construction contract used in Wake, North Carolina. It involves a predetermined fixed amount of money agreed upon between the homeowner and the contractor. This contract is ideal for homeowners who have a clear understanding of the project scope and want to avoid any unexpected expenses or variations. The Wake North Carolina Construction Contract for Home — Fixed Fee includes detailed information about the project, such as project plans, specifications, and a timeline for completion. It also includes provisions for any necessary permits or inspections required by the local authorities. This contract type offers homeowners peace of mind, as they know the exact cost of the project upfront. Keywords: Wake North Carolina, Construction Contract, Home, Fixed Fee, predetermined amount, project scope, unexpected expenses, project plans, specifications, timeline, permits, inspections. 2. Wake North Carolina Construction Contract for Home — Cost Plus: The Cost Plus contract is another type of construction contract widely used in Wake, North Carolina. Unlike the Fixed Fee contract, the Cost Plus contract involves the homeowner paying the actual cost of construction, plus an agreed-upon percentage or fee to cover the contractor's overheads and profit. The Wake North Carolina Construction Contract for Home — Cost Plus includes detailed information about the project scope, estimated costs of labor, materials, and other expenses. This contract type provides homeowners with transparency as they have direct access to invoices and receipts, making it easier for them to track expenses. Keywords: Wake North Carolina, Construction Contract, Home, Cost Plus, actual cost, percentage, fee, labor, materials, expenses, transparency, invoices, receipts. 3. Wake North Carolina Construction Contract for Home — Combined Fixed Fee and Cost Plus: In some cases, homeowners and contractors may decide to utilize a combined Fixed Fee and Cost Plus contract for their construction project. This hybrid contract includes both a predetermined fixed fee and an agreed-upon percentage or fee based on the actual costs incurred during construction. The Wake North Carolina Construction Contract for Home — Combined Fixed Fee and Cost Plus provides a balance between fixed and variable costs, ensuring homeowners have the advantage of an upfront price while still allowing flexibility for unforeseen changes. This contract type is suitable for homeowners who desire a degree of cost certainty but also want to accommodate potential project alterations. Keywords: Wake North Carolina, Construction Contract, Home, Combined Fixed Fee and Cost Plus, hybrid contract, predetermined fee, percentage, variable costs, upfront price, flexibility, project alterations. In conclusion, whether it's a Wake North Carolina Construction Contract for Home — Fixed Fee or Cost Plus, homeowners have the option to choose the contract type that best suits their needs and preferences. These contracts protect both parties involved in the construction project and help ensure a successful and satisfactory outcome.
