So, you have finally saved enough, and you are now ready to build your home. You have chosen your layout and selected all the home’s furniture and fixtures.
Now the only thing left is to liaise with the contractor and finish signing the construction contract. However, before you sign, you must read and understand the agreement. You can even negotiate specific terms and conditions if you want.
On that note, the following information is intended to provide you with the necessary information on what to look out for before you sign a construction contract with your builder.
Elements To Know Before Signing A Contract With A Builder
Picking the right builder for your home can sometimes prove to be a daunting task. However, if you don’t approach the matter correctly, you can end up losing a lot of money and feeling heartbroken.
It has become relatively easy to find people who entered into a building contract without checking the terms and conditions or considering how those terms would affect them.
With that said, the following are some of the aspects you should look at before you sign on the dotted line.
Experience Levels
No one who needs a house built or their home remodeled would want to mess around with a subpar builder. You should look for someone who can show you that they have the necessary experience to do a good job.
Cost Of The Project
Pricing is one of the first things you and your builder ought to agree on before signing a contract. Make sure they can work within your budget. A seasoned professional can even help you bring down your expenses by suggesting more reasonable alternatives for your home construction or remodel.
Are They Insured?
It is vital that you make sure the builder holds the correct insurance policies before you sign any contract. It would be best if you asked them to show you their certificates of insurance. You should be asking yourself, does their insurance cover poor workmanship?
They should at least have Workers Compensation, Public Liability Insurance, and Home Building Insurance. If there is ever a claim against them, such insurance policies will ensure you are protected and that your project is not stopped or negatively affected.
Is The Builder Registered?
If you are building a home, you should only work with a qualified and experienced builder who takes pride in the quality of their craft.
By working with professionals, you will have peace of mind when signing the contract since you will be working with someone who knows what they are doing and are capable of delivering what you want.
How Many Construction Projects Are They Currently Working On?
By knowing how many properties your builder is currently working on, you will be able to get a rough idea of the size of their company. This usually means finding out if they are a small or large construction company.
A construction firm with a full book of current projects may be seen as trustworthy and reliable since their work is in high demand. However, it is also important to establish if they can handle your project professionally and adequately while having a number of other projects going on.
Communication And Conflict Resolution
You have to know how you will communicate with your builder once the work starts. Remember, building a home can be one of the most stressful times in an individual’s life.
The stress will get a lot worse if the project does not progress the way you expect it to. So, before you sign a contract, know that you will be entering into a business deal with your builder and must clearly outline what channels of communication will be used and what methods of conflict resolution will be applied if things go wrong.
Summary
As mentioned earlier, even though a building contract may seem like something you can easily sign without much thought, some of its provisions can be surprisingly complicated.
You should take the time to understand the entire contract before you sign anything. Also, take the necessary steps to protect your interests. You should never underestimate the need to evaluate a legal contract with your builder.