Simple Construction Agreement

Never hire a contractor without a written agreement.

A simple construction agreement between you and a contractor should include specific items that will protect your financial interests, protect your property, and protect you from damages made by the contractor and his crew to a neighbor's property.

Purchase a Contract

You can purchase a construction agreement at a business supply store or over the Internet. Contract forms can vary, so it is wise to know what to look for before buying. There are contracts that protect the rights of the contractor more than the homeowner and vice versa.

Exhibits

Attach the work order and the declaration page of the contractor's liability insurance to the contract as exhibits.

Penalties

Time performance is essential. Include a completion date, penalties for non-performance and extension provisions for inclement weather. Outline a payment schedule. Contractors may include penalties if the owner does not make payments on time.

Legalities

Certain provisions that are included in most contracts and should be addressed in the construction agreement. A cancellation provision, assignment of the contract to another party, and holding one or both parties harmless of any damage or liability are a few examples.

References

• Granite Documents: Construction Contracts
• BuyIncomeProperties.com: Building Construction Agreement