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Home build and renovation contracts part 3 - What contracts should include

14/5/2020

1 Comment

 
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I started this series with an article: ​Home build and renovation contracts part 1 - what you should know followed by my next article  Home build and renovation contracts part 2 - the rules of the project.  Today I discuss what should be included  in a home build or renovation contract with your contractor.

Things to include in the contract are:
  • Signatures of the authorised representatives of both parties (you and the contractor). The contract could be null and void if the contractor’s secretary or supervisor has signed the contract and they don’t have the authority to sign on the contractor’s behalf.
  • Drawings.
  • The project schedule, or milestone dates when the project must be completed.
  • The scope of work (what the contractor must do).
  • General terms and conditions – including payment terms.
  • The contract price – what the contractor will be paid for the work.
  • Names and addresses of the contracting parties (you and the contractor).
  • Project specific conditions. These could include complying with specific estate rules and requirements, or explicit requirements that you may have, such as protecting certain trees and vegetation, or limiting working hours. Remember that any additional items which you’ve forgotten and add after the contract is signed could give the contractor the right to claim a variation.
  • The location of the project (physical address).
  • The date when the contract comes into effect (starts).
  • Defects and warranty periods. See Chapter 11.
  • Definitions of terminology used.
  • The obligations and responsibilities of the parties.
  • Specifications applicable to the project.
  • Penalties, or liquidated damages, for late completion – although few contractors will agree to this item.
  • Exclusions and work to be done by others.
  • Any other specific conditions which you think are pertinent.
Preferably it should also include a termination clause and a dispute resolution procedure.

It’s advisable to get an expert to check the contract before signing it. It’s important to check that the contents of the contract cover all the work the contractor was asked to price and that there aren’t additional clauses which weren’t included in the original pricing documents.
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​This is an extract from 'An Introduction to Building and Renovating Houses: Volume 1'  written by Paul Netscher.
Please like, share and comment.

Learn more about renovating and building houses

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​Paul Netscher has written 2 easy to read books 'An Introduction to Building and Renovating Houses - Volumes 1 and 2'. An Introduction to Building and Renovating Houses Volume 1 deals with Hiring Contractors, Managing Construction and Finishing Your Home.  and Designing your ideal home Volume 2 deals with Finding Your Ideal Property and Designing Your Dream Home. 
​("Great for those that DIY. Very helpful in home renovations!" said a Reader on Amazon.com 5*****)
These books are available from Amazon and other online bookstores in paper and ebook.

© 2020 This article is not to be reproduced for commercial purposes without written permission from the author.
1 Comment
Charles Bobber
14/7/2020 08:04:59 pm

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    I’m a construction professional, author of several successful construction management books, and a home owner. I’ve made mistakes in construction management, I’ve seen others make mistakes, but importantly I’ve had multiple successful construction projects and I’ve learned from the mistakes. I want to share these lessons and my knowledge with you.
    'An Introduction to Building and Renovating Houses - Volume 1 Hiring Contractors, Managing Construction and Finishing Your Home' are my latest books. packed with tips and information to ensure your home construction project is a success. Get your copy today from Amazon and other online stores.

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  • Construction Home
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