When building a new home, it`s important to have a solid contract agreement in place to protect yourself and ensure that all parties involved are on the same page. Here are some key elements to include in a new home construction contract agreement:
1. Scope of work: This section should clearly outline the work to be performed, including the materials to be used and the timeline for completion.
2. Payment terms: This section should detail the payment schedule, including the total contract amount, when payments are due, and any penalties for late payment.
3. Change orders: It`s not uncommon for changes to be made during the construction process. This section should outline the process for requesting and approving change orders, including any additional costs involved.
4. Warranties and guarantees: The contract should detail all warranties and guarantees for the work performed, including any specific warranties on materials used.
5. Permits and approvals: This section should outline the responsibility for obtaining all necessary permits and approvals for the construction project.
6. Insurance and liability: The contract should clearly state who is responsible for insuring the construction site and any liability for damages or injuries.
7. Completion and final inspection: The contract should detail the process for completing the work and conducting a final inspection to ensure that all work has been completed to the agreed-upon standards.
By including these key elements in your new home construction contract agreement, you can ensure that all parties involved are on the same page and that your new home is built to your exact specifications and standards.
