08-30-2008, 08:08 AM
I suppose that it depends on how the contract is written. Boilerplate contracts can make your eyes glaze over faster than a cloud of VOG at the rim of Pu'u Oo'o.
A contract should be a communication tool that the owner and the Contractor use as a point of reference.
First off, a contract needs to be accompanied by an accurate set of plans and specifications; EVERY change and detail complete. No verbal alterations from the plans and specs. This is a huge pitfall and very common.
Specifications are eveything from the type and manufacturer of the siding to the paint to the tile installation method.
I have always hand typed out my contracts. Everything is spelled out in everyday language.
The overall price for the completed project including labor and materials in accordance with the plans and specifications.
The draw schedule (payments due at certain stages of completion) usually 6or7 for a new home.
Time frame. When the construction will begin and an anticipated completion date.
How change orders will be handled.
Disclosures and insurance issues; how disputes will be handled.
Allowances (included in the price)for items which the owner will choose. example: Finish flooring..... $ 2800. If you spend less then you get a credit, If you spend more, you pay the overage.
Items Not included. very important.
The time spent on careful preperation of plans, specifications and a carefully written contract will save tons of time and aggravation and lawsuits down the road.
By the way, It is the owners responsibility to provide the contractor with the plans and specifications, or pay the contractor to develop them.
Good luck, Dan
A contract should be a communication tool that the owner and the Contractor use as a point of reference.
First off, a contract needs to be accompanied by an accurate set of plans and specifications; EVERY change and detail complete. No verbal alterations from the plans and specs. This is a huge pitfall and very common.
Specifications are eveything from the type and manufacturer of the siding to the paint to the tile installation method.
I have always hand typed out my contracts. Everything is spelled out in everyday language.
The overall price for the completed project including labor and materials in accordance with the plans and specifications.
The draw schedule (payments due at certain stages of completion) usually 6or7 for a new home.
Time frame. When the construction will begin and an anticipated completion date.
How change orders will be handled.
Disclosures and insurance issues; how disputes will be handled.
Allowances (included in the price)for items which the owner will choose. example: Finish flooring..... $ 2800. If you spend less then you get a credit, If you spend more, you pay the overage.
Items Not included. very important.
The time spent on careful preperation of plans, specifications and a carefully written contract will save tons of time and aggravation and lawsuits down the road.
By the way, It is the owners responsibility to provide the contractor with the plans and specifications, or pay the contractor to develop them.
Good luck, Dan