Free Printable Building Contract Template

Free Printable Building Contract Template in WordBuilding a new home can be very tiring and exhausting -not just physically but financially as well. There are lots of things to take care of and to settle before you can actually build your new home. Once all the permits are done, you usually proceed to finding a contractor for your new home.

Building contracts are the binding agreement of the builder (contractor) and the buyer (you). The building contract contains all the things you agreed upon pertaining to the project (in this case, your home). The contract will be signed by both parties once they have already agreed upon all the issues which include the payment method, the deadline, the kind of contract to sign and so forth.

The building contract can be either a fixed-priced or a time-and-materials contract. The fixed-price contract will be most advantageous for the buyer. When the contract is fixed-price it implies that the buyer will pay the contractor a fixed price for the certain project. The amount will be the estimated amount of the project from the estimated cost of materials and the time frame of when the project will be finished. If in any case, the builder finds an unforeseeable event that impedes the progress of the project or needs additional funds, the builder will be the one to take care of that and the buyer will not pay any additional payments. But if the buyer will be able to finish the project in a lower cost and less time, then he can maximize his profit. The fixed price contract is usually chosen by buyers to protect themselves from contractors that back out in the middle of the project.

The time and materials contract on the other hand works to protect the contractor. The cost of the project will be computed as to the price of the materials and the time frame of when the project will be finished. All the expenses will be charged to the buyer. This is usually the preferred type of contract when the amount of the project cannot be estimated. Large scale renovation projects will most likely have a time and materials contract because there are other foreseeable circumstances like termite damage.

The time frame of the project is one of the most important elements in the contract. It sets the deadline of the project. For the fixed-priced contracts, if the project is finished earlier than expected, then the contractor will gain from it. A bonus may even be given to the contractor by the buyer. For the time and materials contract, the time frame is important to the buyer because the buyer will have to shoulder the extra expenses. But, the contractor will also pay a fine once delays on the project happen. A clause on this in the contract is usually stated.

The payment for the contract will be agreed upon by both parties, including the amount and mode of payment. The scheduled dates of when the payments will be made are also stated in the contract. Information on the warranty is also included in the contract. This is important in case the buyer sees defects on some of the parts of the house. The warranty will usually last for only one year. Having the warranties on hand can be more practical than asking for them only when you have seen the defects.

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