Residential construction contracts define the duties and rights between a builder and owner, including scope of work, contract price, dispute resolution, and other provisions. Parties negotiate terms and may use standard contracts as a model. Additional documents may be added to the contract.
Residential construction contracts are documents that define the duties and rights between a builder and an owner. A typical agreement identifies the parties to the contract, the scope of the work, the contract price, dispute resolution procedures, and several other provisions. A builder and landlord negotiate the terms of housing contracts. A builder is usually a general contractor responsible for construction. An owner can be a person or business that is paying for the project on the property.
Typical provisions in housing contracts include a section identifying the parties. This section includes the name and address of each party. In the event of a dispute, the parties use the information in this section to provide each other with legal or contractual communications. Providing notice means that the parties have agreed to notify each other in writing of any dispute relating to a project.
The scope of work describes the services that a builder agrees to perform. In residential construction contracts, a builder usually agrees to provide the labor, equipment, materials, and other services needed to complete a project. This section also requires the builder to construct a home in accordance with the blueprints, plans, or drawings provided or agreed to by the owner, and in compliance with local building codes.
The contract price in residential construction contracts sets out the total amount that the owner must pay the builder. This section usually defines the payment process or payment schedule between the parties. For example, a landlord may agree to pay a specific percentage to the builder to get the job started. Subsequently, the owner pays additional sums to the builder upon completion of specified phases in a project.
Another key section of housing contracts is the dispute resolution procedure. The parties usually agree on a process to resolve any disagreements that may arise. For example, the parties may agree to submit disputes to mediation before filing a lawsuit. A mediator listens to each side of a dispute and tries to help the parties resolve their conflict outside of court. This type of arrangement can help each party avoid disputes and save money.
Residential building contracts have several other provisions and can be complex. In addition, several other documents called exhibits or additions are added to a residential building contract. These documents may include warranties, insurance, plans or any other documentation that the parties have agreed should be part of the contract.
A builder and landlord are free to negotiate the terms of housing contracts. The construction industry usually has standard contracts that a builder can use as a model and which comply with the appropriate statutory provisions in the jurisdiction. Professionals such as lawyers and building contractors design such contracts.
Protect your devices with Threat Protection by NordVPN
