PROCESS BEFORE BUILDING:
Last year I was hired to build a home with my dad who has been a certified builder for many years now. I was hired under him as an apprentice so he was set to teach me as much as he could. I was unaware of what how how the building process would begin. My dad told me first step was to ensure you had all legal documentation to begin construction, as without these documents no construction was legally allowed to proceed. So I set my self a task to research all the documentation required and to study each one so I would know about this situation further along my carrier in building.
Here are some typical content of a home building contract:
- Names of all parties
- Addresses of all parties
- Phone, fax, email contacts and procedures
- Date of contract
- Property description
- Street address
- Subdivision
- Homeowners association
- Amount of contract
- Terms of financing
- Construction draw schedule
- Construction draw procedure
- Insurance requirements
- Start date and definition
- Substantial completion date and definition
- Plans, drawings, blueprints, sketches
- Specifications - as complete as possible
- Substitution policy
- Allowances - including labor and/or material
- Change order procedures and pricing
- Exclusions to the contract
- Authorized delay conditions
- Penalties or fines
- Access to the construction site
- Owner, lender, and third party inspection procedures
- Methods to solve disputes
- Arbitration clause
- Settlement terms
- Formal notification times and procedures
- Warranties and service policies
- Any documents required by state or local laws
- Signatures and dates of all parties on every page of every document with original copies for all signing parties
- Witness to all signatures
- And anything else about which two or more people can disagree, misunderstand, fail to do, install improperly, overlook, ignore, or that otherwise might create a problem between any or all of the aforementioned parties.
- WITNESSETH, the party of the first part hereafter known as owner, and the party of the second part, hereafter known as contractor that have here today placed their hands and seals on this document have hereby agreed to just be friends, get along nicely with each other at all times, expect only what is reasonable of each other, neither charge too much nor pay too little for services rendered, and build the perfect house on schedule and under budget.
Once I had an understanding of what was required of the documentation I had more of an understanding of what was involved with building. Once my dad had passes all documents needed we began work. And 4 months later we had made a brand new house without and trouble or injuries.
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