Home Fee Cost Plus Contract With Guaranteed Maximum In Virginia
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Description
The Home Fee Cost Plus Contract with Guaranteed Maximum in Virginia is designed to facilitate construction projects between a contractor and an owner, outlining the terms and conditions of their agreement. This contract includes key sections such as the scope of work, work site, and responsibilities regarding permits and soil conditions. Notable features include provisions for change orders, detailing how modifications to the project scope will affect costs, as well as stipulating a clear fee structure, either based on actual costs plus a fee or a fixed fee. The contract also addresses payment terms, including late fees and contractor warranties. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants engaged in real estate and construction law, as it provides a structured approach to ensure all parties understand their obligations. Additionally, it serves as a protective measure for both the contractor and owner, managing risks associated with construction while promoting transparency in costs and project management.
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FAQ
Disadvantages of GMP contracts Potential for disputes: While shared savings can be an advantage, it can also lead to disagreements over project management decisions, especially if there's a perception that savings are being prioritized over quality.
Limit your down payment or deposit. A good rule of thumb is an initial deposit of no more than 10% down or $1,000, whichever is less. Unless the job requires custom-made items or special orders, in which case an initial down payment should be no more than 30% of the total value of the contract.
