A building and construction contract must fulfill the same requirements as any other type of contract in regard to matters such as offer and acceptance, sufficiency of consideration, certainty, and the like. Such a contract generally provides not only for the construction of the project, but also for many matters that are incidental to the project. Thus, it may provide for the carrying of liability, workers' compensation, and fire insurance policies, designating which party is responsible for obtaining particular insurance. A building and construction contract will typically specify the duties, responsibilities, and liabilities of each of the parties, as well as those of any employed architect or engineer. The amount and method of compensation is, of course, an important part of such a contract.
If things get sticky, first try to resolve it amicably. If that doesn’t work, you might want to consider mediation or consulting a lawyer to explore your options.
Do your homework! Check reviews, ask for references, and look into their past projects to ensure they have a solid track record.
Most new construction contracts come with a warranty that covers defects in workmanship and materials for a specific period, so read the fine print!
If construction falls behind schedule, the contract should specify what happens next, whether it’s penalties for the builder or options for you as the buyer.
Yes, you can typically negotiate terms before signing, but it’s important to get any changes in writing to avoid misunderstandings later.
You should make sure it includes details about the timeline, payment schedule, materials used, and warranty information, to ensure you're covered all around.
A new construction contract is a legal agreement between a builder and a buyer outlining the terms for building a new home or property.