General Contractor Homeowner Agreement

1. Overview The attitude of a general contractor is a stressful experience for every homeowner or property owner. This company or individual will be responsible for your entire project, whether it is a new complete building or a major transformation, and the owner will put one of his most valuable assets in the hands of another. There are no strict and quick rules on how a contractor recovers his expenses. Some do not collect until the work is finished, while others ask 50% in advance. The average is three payments; the first, if most of the material is provided or when a foundation is cast; A second payment when the contract is half-finished and 20% when the work is done. A 10% freeze is normal until the order is checked and the paperwork is completed. There are two usual ways to pay for a large job: you should use a construction contract if you are at both ends of the construction, renovation or modification process of a building or structure. Maybe you finally decided to build the house of your dreams and live happily ever after.

Fortunately, we have to wait again and again because there are unreasonable delays for contractors or unexpected costs, too high. These are present in two forms: conditional and unconditional. A contractor will give you a conditional release for full payment by personal cheque. Once the cheque is cashed, the release becomes unconditional. Unconditional unlocking can be ensured immediately by a full payment with a certified cheque. At first glance, you may think that you should create a general contractor and subcontract contract rather than a contract that only covers your general contractor. However, since it is your general contractor who hires the subcontractor, the legal agreement that applies in these situations is between them and not between you and them. 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. A) Higher flat fee: As a general rule, dummies are set with the homeowner. The contractor uses the draw to actually pay for the estimated costs, and transmits all access and accounting regularly.