There are different types of contracts

 

  • The standard New Building Contract limits – lists who, what, why, were and when.
    Leaving very little wiggle room for changes, additions or even a change to think about your choices.

    • The good thing about this type of contract is if this is your first house being built for you.
    It keeps you on schedule and in budget.

  • The Design Build Contract is an open ended contract with no limitations expect your budget.

    • The good thing about this contract is that the contractor and sub contractors are locked into a price per hour rate and a percentage of profit.

    This type of contract differs from the new building contract, yes you can get the same results with both contracts but a lot more paperwork, down time (with no one working at the housing site) and higher end price tag.

  • Another type of contract is an addition contract. It could be a short contract or a detailed contract.

    • Remember the more detailed the contract the better it is.
    Don’t let it scare you if there a lot of papers to sign.
    It’s in your best interest to have a 40 page plus contract.

    11/28/2005 by Gary Korpi on Construction Tips, Contracts

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