Building Contract For Homeowners In Montgomery

State:
Multi-State
County:
Montgomery
Control #:
US-00462
Format:
Word; 
Rich Text
Instant download

Description

This form is a Construction Contract. The form contains the following subjects: scope of work, work site, and insurance. The contractor's warranty is limited to defects in workmanship within the scope of the work performed by the contractor.


What is a Construction contract agreement?


If you’re planning to build, renovate or reconstruct your house, you will need to enter into a contract for home construction with the building contractor, defining your mutual rights and responsibilities. This agreement contains project specifics, the contractor’s license and insurance details, the requested scope of work, etc. It may also determine the potential lien on the property should the work not be paid in full.


Types of construction contracts


Depending on the payment arrangements determined by parties, there are four basic types of home builders’ contracts:


1. Fixed price (or lump-sum) agreements set the price for the completed job right from the start. Although fixed, the document may also include provisions defining penalties (for example, if the constructor fails to finish the work on schedule).


2. Cost plus construction agreements set the price for the finished work based on building materials and labor with additionally mentioned “plus” (a percentage of the total costs or a fixed fee).


3. Time and material agreements set the price for the work without a “plus,” but the client pays the contractor a daily or hourly rate while they are under contract.


4. Unit-price agreements are standard in bidding, particularly for federal building projects. Both owner and contractor define the price that the contractor charges for a standard unit without any specific extra fees for other units.


The first two types of contract for home construction mentioned are the most popular ones. Let’s take a closer look at them.


Fixed price vs. cost-plus contract benefits


The fixed price agreement benefits owners more than builders, as it determines at the moment the parties seal the deal the exact price the contractor will get after they complete all the work. Builders risk not getting the estimated profits they initially anticipated, as expenses may increase significantly but remain the constructor’s responsibility.


The cost-plus construction deal contains the evaluation of the final project cost; however, it doesn’t determine the final contract price until the contractor completes all the work. Unlike the fixed-price agreement, it separates expenses and sets the profit rate (as a percentage of the final project cost or as a flat amount), so contractors prefer this type of agreement; it is riskier for homeowners.


Information you should provide in the construction contract agreement


The presented Construction Contract for Home is a universal multi-state construction contract template. This sample describes typical terms for a home building contract. Download a printable document version from our website or amend and fill it out online. Make sure to provide the following information:


• Name and contact details of the contractor and their license number;


• Name and contact details of the homeowner;


• Property legal description from county clerk’s records;


• Project description with blueprints and building specifications;


• Scope, description of work, and its estimated final dates;


• Costs of work and responsibilities of parties for any breach of contract.

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  • Preview Construction Contract for Home - Fixed Fee or Cost Plus

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FAQ

The Illinois Department of Financial and Professional Regulation provide online public access through its 'License Lookup' to search and verify all Illinois professional license holders.

An individual may act as general contractor, without obtaining a license, for work on an entirely residential property that is the individual's primary residence (as shown on an Illinois driver's license or similar government-issued ID) if there are no more than 6 residential units and no buildings taller than 3 ...

While the Prairie State doesn't require a general contractor license at the state level, licenses are typically regulated at the city or county level, and those requirements often vary. There are exceptions for roofing and plumber licenses, which require state permits.

Contracts don't need to be in legal language, but they do need to outline exactly who is responsible for what from obtaining various permissions (such as building control approval) to timings, tidying up, materials, insurance and how payments will be made. A written contract will protect you and reduce risks.

Contractors should contact the division's Administrative Assistant with any questions at permits@montgomeryil or 331-212-9023. Submit application materials to permits@montgomeryil, mail them, or drop them off at the Permit officer at Village Hall.

A permit is required prior to construction of detached one- or two-family dwellings and townhouses (not more than three stories above grade in height). New home construction requires that you have applied for Right-of-Way and Sediment Control permits at the time of your building permit application.

Standard residential building permit applications typically take four weeks to complete the first set of review comments. Fast track permit applications are issued generally in one to two days. How are revisions handled? Revisions must be submitted electronically.

A homeowner may perform the construction and pull the permits if they agree to accept all liabilities of the work to be performed. If a homeowner applies for a permit(s), then the homeowner assumes responsibility for the work being in compliance with applicable codes.

Building Permit applications are completed online. Please go to Momentum portal; enter the information directly into the County's Permitting System; and print three (3) copies of the computer-generated application prior to visiting the Permits Center. (Printers are NOT available onsite for customers.)

Can I write my own contract? Yes, you can write your own contract. However, including all necessary elements is crucial to make it legally binding.

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Building Contract For Homeowners In Montgomery