Building a Home – Contract
I was sitting in my four season’s porch one Sunday afternoon with a friend who is building a home. She proceeded to tell me of how her builder has gone over budget again. Hearing this, I think back to the agreement set up with my builder. I explained to her each key point covered in my contract.
- Design Agreement – This was an agreement I signed with my builder. It assured me that my home was going to be designed and built within my budget. And since my builder was going to commit a lot of time and energy on the design to deliver on this promise, I in turn gave my vote of confidence to the builder that they would be my contractor. We entered into an agreement based on trust of one another and that carried through my entire project!
- Final Construction Plans and Building Contract– Upon the completion of design, my builder used the final plans to firm up the pricing. I then took my building contract and plans to the bank so an appraisal could be done and the construction loan documents could get drafted. Once everything was approved, the funds to build my house were held at a title company for disbursement as needed.
- Allowances – Certain allowances were set by my builder for the things I was going to select, such as flooring, lighting, plumbing fixtures, etc. These allowances spelled out how much I could spend on each item. Another nice benefit of working with my builder is that I was provided with a decision schedule so I know when all my decisions needed to be made.
- Change Order – I decided to add a deck off the back of my porch. Therefore, my builder figured out what this would cost, let me know, and we agreed to proceed. The change order let the title company know where additional costs were being spent.
- Warranty – Knowing that there was a warranty that started the day I moved in was very comforting as it let me know what to do if I ran into a problem. For example, a short while after moving in, I had noticed a drip on one of my bathroom faucets. I gave my builder a call and because of the warranty, they repaired it in no time, with no hassle.