As a home builder, it`s important to protect yourself and your clients with a comprehensive builder agreement. A builder agreement is a legally binding document that outlines the terms and conditions of a construction project, including the scope of work, payment terms, and responsibilities of both parties involved.
To help you get started on drafting your own builder agreement, we`ve provided a sample agreement below:
1. Scope of Work: This section should clearly define the scope of work for the project, including any plans, drawings, and specifications.
2. Payment Schedule: This section should outline the payment schedule for the project, including the deposit amount, progress payments, and final payment.
3. Change Order: This section should outline the process for any changes to the scope of work or materials during the construction process, including how the changes will be documented and any additional costs.
4. Warranty: This section should outline the warranty provided by the builder, including the length of the warranty and what is covered under the warranty.
5. Termination: This section should outline the conditions under which either party may terminate the agreement, including breach of contract or failure to make payments.
6. Insurance: This section should outline the insurance requirements for the project, including liability insurance and workers` compensation insurance.
7. Dispute Resolution: This section should outline the process for resolving any disputes that may arise during the construction process, including mediation and arbitration.
It`s important to note that this sample agreement is just a starting point and should be customized to fit the specific needs of your project. We recommend consulting with a lawyer experienced in construction law to ensure that your builder agreement provides the necessary protections for both you and your clients.
In addition to protecting yourself and your clients, a well-drafted builder agreement can also help ensure a successful construction project by clearly defining the expectations and responsibilities of all parties involved. So take the time to craft a thorough and comprehensive builder agreement before breaking ground on your next project.