When it comes to building a house, having a written agreement between the homeowner and the contractor is essential. This agreement ensures that both parties are on the same page and that the construction process goes smoothly. In this article, we will provide you with a sample house construction agreement that you can use as a reference when drafting your own.
1. Parties Involved
The agreement should begin by stating who the parties involved are. This should include the name and address of the homeowner and the contractor. It’s important to note that if the contractor is a company, the legal name of the company should be listed.
2. Project Description
The agreement should include a detailed description of the project, including the location, the type of construction, and any special requirements or requests made by the homeowner. This section should also include a timeline for the project, outlining when each phase of construction will take place and the expected completion date.
3. Payment Terms
The agreement should outline the payment terms, including the total cost of the project, the payment schedule, and any penalties for late payments or changes to the project. It’s essential that the payment terms are clear and agreed upon by both parties to avoid any disputes in the future.
4. Change Orders
Change orders are changes made to the original scope of work or project plan. The agreement should include a clause that outlines how change orders will be handled. This should include the process for requesting a change order, how it will be approved, and any additional costs or delays that may result.
5. Warranties and Guarantees
The agreement should also include any warranties or guarantees provided by the contractor. This may include a warranty on the construction work, materials used, or any appliances installed. It’s important to understand what warranties and guarantees are included and for how long they will be valid.
6. Termination Clause
The agreement should include a termination clause outlining the conditions under which either party can terminate the agreement. This may include breach of contract, non-payment, or other issues that may arise during the construction process.
Conclusion
A well-written house construction agreement is essential to ensure that your construction project goes smoothly and without any disputes. Using this sample as a reference, you can draft your own agreement that clearly outlines the rights and responsibilities of both parties. Remember, it’s important to have an attorney review your agreement before signing to ensure that it’s legally binding and protects your interests.