State-specific Construction Contracts

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Commonly Asked Questions about State-specific Construction Contracts

What are the four types of construction contracts?

Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.

In which counties of New York state do home improvement contractors require to be licensed?

Home-improvement contractors must be licensed in New York City, Suffolk, Nassau, Westchester, Putnam, and Rockland counties, and the City of Buffalo.

What is the rule called which states that a contractor has the right to rely on the bid documents provided by the owner?

For now, its sufficient for utility contractors to understand that, absent an express disclaimer, the Spearin Doctrine implies a warranty that allows a contractor to reasonably rely upon the adequacy of the plans and specifications provided by an owner in the event that the design proves to be inadequate or causes the

Can a contractor ask for more money?

The simple answer to this question is, no, the contractor cannot charge additional fees after receiving full payment. This boils down to a contract issue. The final step in completing the contract is for the contractor to send the final invoice and for the client to pay the invoice in full.

Is it normal for a contractor to ask for $50 up front?

Common Construction Deposit Structures 50/50 Deposit: Note that this will usually only be seen on smaller projects jobs like simple repairs or paint jobs, etc. An initial deposit is made to cover materials, permits, and possibly labor, while the final payment wraps up the profits and other expenses.

Is it normal for contractors to charge half up front?

The exact deposit amount contractors ask for upfront varies and is especially dependent on the size of the project. For relatively small jobs, like a $16,000 bathroom remodel, contractors may ask for a 50% deposit. For large jobs, like a $100,000 full-home renovation, a 10%20% deposit is more typical.

What is a fair contractor markup?

The industry standard for material markup varies, but the markup range is typically 7% to 20%. That said, your exact figure depends on: The type of materials. The complexity of the job.

How much can a contractor ask for up front in NY?

Never pay in cash or without a contract. Pay no more than 25% of the total contract amount upfront to get the work started. Keep track of all paperwork and payments.