Page 22 - What You Need to Know to Find the Right Builder

your earlier discussions, so they can include all the items that have been decided

upon. The contract should be designed to hold the builder and the client
accountable during the building process, but it should really be more of a
formality which does nothing more than collect dust in a file after it’s signed.

Items to be sure are included in the contract are:

• Total cost of the project including the written proposal that should have
already been presented earlier

• Total amount of any allowance items with details about what products this
allowance would need to pay for such as flooring, cabinets, light fixtures,
etc. It doesn’t need to include specific brands, or models, but it should at
least mention the categories. Of course, a specific list of fixtures that are to
be provided would be helpful if it is possible to list them. The more detail,

the less conflict you should have later. For example, if the builder plans to
provide a Kohler lavatory faucet which is 8” on center in oil rubbed bronze
finish, perhaps he can list this with a model number and a price. That way,
when it comes time to pick out the actual fixture and you decide to go with
brushed nickel finish instead, you will know exactly how much of a savings
or increase you’re responsible for.
• A copy of the preliminary design with written specifications

• Any mandatory state or local documents that pertain to your project,
property or subdivision.
• The dates that the contract takes effect as well as the dates the project will
begin and end. This sets a firm timeline for your builder to follow.
• The client and the builder will be required to sign the contract, so it

becomes binding under all applicable laws.

21