Standard General Contractor Agreement

Construction bill – so that a contractor can request payment for services provided to his client. This agreement allows the parties to write down the exact nature and details of the work to be carried out, as well as the responsibilities of each party throughout the construction. The terms of payment for the project are also mentioned. In general, there are three different types of price agreements: that doesn`t mean you can`t protect yourself. There are a number of methods that you can use to ensure that subcontractors can only use your general contractor, not you, for compensation they may owe. See what owners and homeowners and business owners need to include in a construction contract. Amount of lump: Also known as the traditional „fixed price“ contract, this is the most common price for construction contracts. In a lump sum contract, the parties agree on a fixed price based on the contractor estimating the costs of a complete and final project. Lump-sum contracts take into account all materials, subcontracting, work, indirect costs, profits and more. Cost or cost-plus: In a cost-plus contract, the owner reimburses the contractor for all costs incurred during construction, such as equipment and work. The owner also pays an agreed profit margin, usually a flat fee or a percentage of the total cost. If it is a new building or a larger number (more than 2 to 3 months), the contractor requires that overtime be paid to them or at certain checkpoints. The client is responsible for the fact that the project works accordingly and, if certain parameters are met, to make the payment.

If you are considering using a general contractor to take over the renovation of your home, it is important to take the time to establish a detailed general business agreement. Once the treaty is signed, it will be a binding legal document, which will be widely expanded to avoid conflicts that might otherwise occur. A serious contractor will not hesitate to sign a general business agreement with the owners of the house, which the contractor will transform. If the person you want to hire to act as a general contractor for your home renovation project is resistant to signing an agreement, it`s certainly time to start looking for another general contractor.