What you need to know about building contractor

 

There is always an agreement between a property owner and contractor. The constructor is following the rule based on the construction contractor agreement. This document outlines which parties will be engaged, the price to be paid, the rights of each party and the date construction will commence and be completed.

Why we need the constructor contractor agreement?

 It is to prevent one of the team, contractor or owner to do what they want during the building process. if your contractor and his team suddenly stopped working, and he or she is demanding excessive payment for materials and labour not originally agreed upon. Or, your client, the owner, is refusing to pay you after the completion of the project. Either way, you’ll want to make sure you have an agreement in writing to protect your rights. If you don’t have an agreement, you risk wasting time and money, not to mention the quality of the construction.

The success of construction depends on clearly defined expectations and schedules. Mistakes or delays affect both owners and contractors negatively, causing owners additional costs because they are unable to use the property for the intended purpose at the intended time, and causing contractors additional costs for labor and equipment.

What should be included in the contract?

It is very important to make sure you and your contractors are on the same page about who's doing what, how much it will cost, and what will happen if things go wrong.

These sorts of contracts can work well as an incentive to the builder to finish on time and within the budget. You avoid the risk of uncontrolled extra costs and time, but you will pay a premium because the risk of delays and extra costs will be factored into the price.

After you signed the contract, you will be very hard to make change in the contract. However you and the contractor can come to an agreement without affect the content in the contract. Or you can highlight the point may change in the contract before you sign.

Breaking the contract

Generally, once you've signed a contract or accepted a quote, you can't change or cancel it. In some circumstances, and with the other party's agreement, you might be able to.

If you decide to cancel the contract without your contractor's agreement or you don't keep to the terms, you could be in breach of contract. This means the other party can take legal action against you.    

If your contractor isn't keeping to the terms of the contract, raise it with them in writing, then follow the steps outlined in the the contract for disputes.

Things to take notes :

-          The cost may not be the same as the contract, it could be 10% more than your budget.

-          Always keep track of what building contractor is doing, don’t make them change at the last minute as the chances they say yes is near to 0%.