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.
A Kansas Construction Contract for Home refers to a legally binding agreement between a homeowner and a contractor for the construction, renovation, or remodeling of a residential property in the state of Kansas. This contract outlines the terms and conditions, scope of work, payment structure, and other essential details related to the project. There are two main types of Kansas Construction Contracts for Home — Fixed Fee and Cost Plus. 1. Fixed Fee Contract: This type of contract specifies a predetermined and fixed amount that the homeowner agrees to pay the contractor for the entire project. The contractor is responsible for completing the agreed-upon work within the set budget. Any additional costs incurred during the construction, due to unforeseen circumstances or changes requested by the homeowner, are usually negotiated separately and documented in a change order. 2. Cost Plus Contract: In a Cost Plus Contract, the homeowner agrees to pay the contractor for the actual cost of materials, labor, and subcontractors, along with an agreed-upon percentage or fee as the contractor's profit. This contract type allows for more flexibility as it allows adjustments for any unforeseen expenses or changes in the scope of work. It requires the contractor to provide detailed invoices, including receipts and labor records, to justify the costs incurred during the project. Regardless of the contract type, the Kansas Construction Contract for Home should include various key aspects: 1. Parties Involved: The contract should identify the homeowner and contractor, including their names, addresses, contact information, and any relevant licenses or certifications. 2. Scope of Work: A detailed description of the work to be performed, including architectural plans, project specifications, permit requirements, and any specific materials or finishes being used. 3. Project Timeline: The contract should specify the start and completion dates, including any milestones or deadlines for specific project phases. 4. Contract Price: For a Fixed Fee Contract, this includes the agreed-upon amount to be paid to the contractor. In a Cost Plus Contract, it includes the reimbursement of actual costs along with the contractor's profit percentage or fee. 5. Payment Schedule: This section outlines the payment structure, including any down payment, progress payments, and the final payment upon completion. It may also include retain age or hold back provisions to ensure the completion of the project satisfactorily. 6. Change Orders: Procedures for handling any changes or modifications to the original scope of work, including the process for documenting and approving change orders, their impact on the contract price and timeline, and any additional costs incurred. 7. Warranties and Guarantees: Any warranties on labor, materials, or the completed work, along with any applicable guarantees, should be clearly stated. 8. Insurance and Liability: The contract should outline the insurance coverage required of the contractor, including general liability and workers' compensation insurance, to protect both parties in case of any accidents or damages during the construction process. 9. Dispute Resolution: Procedures for resolving any disputes or disagreements that may arise during the course of the contract, including mediation, arbitration, or litigation processes. It is essential for both the homeowner and the contractor to carefully review and understand the Kansas Construction Contract for Home before signing it, as it serves as a crucial legal document that protects the rights, responsibilities, and interests of both parties.
