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 Wyoming Construction Contract for Home refers to a legally binding agreement between a homeowner and a construction contractor for the execution of construction or renovation work on a residential property within the state of Wyoming. This contract can be structured either as a Fixed Fee or Cost Plus arrangement and encompasses a range of pertinent details and clauses. In a Fixed Fee contract, the homeowner and the contractor agree upon a predetermined fixed amount that will be charged for the entirety of the project. This fixed amount remains unchanged, regardless of any unforeseen circumstances or changes that may arise during the construction process. It provides transparency and ensures that both parties are aware of the total cost upfront, allowing for financial planning and reducing the risk of budget overruns. On the other hand, a Cost Plus contract involves the homeowner paying for the actual cost of the construction work, along with an additional fee or percentage to the contractor for overhead costs and profit. This pricing structure allows for more flexibility as it takes into account any variations or changes that might occur during the project, such as material price fluctuations or unforeseen issues. The homeowner bears the risk of any cost increase, but also retains control over the project's scope and budget. Within the realm of Wyoming Construction Contracts for Home, there can be further variations or modifications tailored to specific circumstances or preferences. These may include Lump-Sum Fixed Fee contracts, which are similar to the Fixed Fee structure but include specific line items outlining individual costs associated with the project. Additionally, there could be Guaranteed Maximum Price (GMP) contracts, where the contractor agrees to complete the project within a set budget, reducing the homeowner's risk of additional costs. Other essential details that should be included within a Wyoming Construction Contract for Home — Fixed Fee or Cost Plus include: 1. Project Description: A comprehensive description of the construction work to be undertaken, specifying the scope of the project, materials to be used, and any specific requirements or instructions provided by the homeowner. 2. Project Timeline: A clear schedule outlining the start date, estimated completion date, and any key milestones or deadlines throughout the construction process. 3. Payment Terms: The agreed payment structure, including the amount and frequency of payments, as well as any conditions for payment releases tied to completion stages or milestones. 4. Change Orders: Procedures and conditions for making changes to the original project scope, along with how the associated costs will be addressed and approved. 5. Permits and Approvals: Clarification regarding the party responsible for obtaining necessary permits, inspections required, and compliance with local building codes and regulations. 6. Dispute Resolution: A provision detailing a preferred method of dispute resolution, such as mediation or arbitration, in case any disagreements arise during the construction project. It is important for both parties involved in a Wyoming Construction Contract for Home to carefully review and understand its terms before signing it. Additionally, seeking legal advice may be beneficial to ensure that the contract meets all legal requirements and protects the interests of both the homeowner and the contractor.
