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New home construction contract checklist

New Construction Contract Checklist 2025

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The document is a checklist for new construction contracts, outlining essential tasks and requirements such as the purchase and sale agreement, earnest money handling, title company coordination, appraisal and inspection processes, associated contract documents, and closing arrangements. It serves as a guide to ensure all necessary steps are completed for a successful real estate transaction.

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What makes a construction contract invalid?

A contract can be declared unenforceable if it does not comply with applicable laws, Wolf said. For example, states like California and Florida have extensive and strict licensing laws, and if a contractor takes on a project without being properly licensed, the contract is likely illegal and therefore unenforceable.

What are the 5 essential elements of a construction contract?

There are five key components you need to address in each construction contract as a protection against legal trouble. Scope of the project. Total cost and payment requirements. Project timeline. Lien law protection. Dispute resolution.

What are the 4 types of construction contracts?

There are several types of construction contracts, but the most common include four primary types: Stipulated Sum Contract, Cost Plus Contract, Design-Build Contract, and Integrated Project Delivery Contract.

How do I protect myself in a construction contract?

Protect Yourself when Working with Custom Home Builders Only work with a licensed contractor. Get the contract in writing. Avoid lump sum bids. Talk to several contractors. Tie payments to deliverables. Get proof of payment to suppliers.

What to look for in a builders contract?

If they are already included, review them carefully to make sure they sufficiently protect your rights or offer guidance in difficult situations. Scope of Work. Timing of Work. Payment for Work. Changes to Scope of Work. Warranty for Construction Defects. Dispute Resolution. Attorneys Fees. Contractor Default Provision.

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What to avoid when writing construction contracts?

What to avoid in construction contracts Unclear scope of work and specifications: An ambiguous scope of work can cause misinterpretation. Missing change order procedures: Not having change order procedures is a risk as construction projects rarely go exactly ing to plan.

How to prepare a construction contract?

How To Write A Construction Contract With 7 Steps Step 1: Define the Parties Involved. Step 2: Outline the Scope of Work. Step 3: Establish the Timeline. Step 4: Determine the Payment Terms. Step 5: Include Necessary Legal Clauses. Step 6: Address Change Orders and Modifications. Step 7: Sign and Execute the Contract.