Building Contract Questions to be asked before Signing a Contract

Building Contract Questions

Building Contract Questions to be asked before Signing a Contract

Building Contract Questions :- This page will give you guidance of questions that should be asked and answered by the building contractors before signing a contract.

Building a new home is a huge emotional and financial investment. There are many suppliers of trades and services that conduct themselves unethically and unfairly. Unfortunately some builders are not exempt from behaving in this manner.

Below are several Building Contract Questions that may help you in your decision as to who you will trust to undertake such a huge investment – that being the construction of your new home.

To begin, you should definitely interview multiple builders; we recommend at least 3-5 builders.below is the sample Building Contract Questions to be asked :-

Building Contract Questions :-

1. Are you licensed & insured?

This should be a quick question with a no hesitation answer, but you may be surprised. If you are using a lender to finance the construction, they’ll require the builder to provide proof of their licensing and insurance, but if you’re not financing, make sure you receive proof. On insurance, it’s important to confirm the builder is not only carrying General Liability and Worker’s Compensation coverage, but is also providing Builders Risk, which is equivalent to Property Insurance during construction.

Also ask for “How many years have you been in business? How many homes have you built?” to proceed future.

2. Can I have the names and numbers of 3 people you have built for?

Always do reference checks. Just like when employers do reference checks on potential new employees, the construction of potentially your biggest ever investment should not be left to just what the ‘candidate’ is saying.

Asking simple open ended questions can help put your mind at ease. Things such as: When the supervisor made contact with you, what sort of things did they keep you updated with?

3. Can you provide me detail specifications and cost?

The devil is ALWAYS in the details and this is certainly true when building a new home. You must get clear, detail specifications and costs from your builder. If anything is unclear, get it clarified. If items important to you are not spelled out, make sure that they are. If you are trying to compare 2 proposals, you have to make sure the details match to be able to compare apples to apples.

4. What’s included and what’s NOT included?

This goes hand in hand with detail pricing. There are many items that go into the full cost of building a home. The land cost is clear, but there are some grey areas when it comes to the home construction. Ask about surveying, construction plans, existing home demolition, insurance, permit fees, impact fees, tree trimming/removal, fencing, etc. These items need to be considered to determine the full cost.

Also check with them about the Bore well digging and Sump construction costs also included or not.

5. Other Building Contract Questions to ask your builder before you sign a contract:

These questions will also help you better understand key steps in the building process and the decisions you’ll make, in partnership with the builder, to bring your new home to life.

  • How do you compare yourself to other builders? What are the most important benefits of the homes you build? What standard features do your homes include?
  • Do you build only from home plans you supply? Or can I provide my own set of plans?
  • Who will be in charge of your project? Or who will oversee the construction of my home? Who should I contact with any questions I may have?
  • How long will my home take to complete?
  • How will you ensure that my house has proper ventilation?
  • What type of warranty do you offer?
  • If there are increases in materials or other costs, will it affect me?
  • Will they be using subcontractors and, if so, are the subcontractors insured? Ask to see insurance verification

There may be other important questions you wish to ask, so feel free to add them in comment. However, experts agree the list above is a great starting point to select the firm to build your new home.

Questions to Ask Yourself:

Did the builder seem knowledgeable? Did they seem to understand all aspects of the building process? Do you have a good rapport with them? This is a business that you will be working closely with for several months, so it is important that personalities do not clash. Do you trust what they are telling you? Are you comfortable with them? Have you checked references?

You can never be too prepared. You are making a large financial commitment, so get as much information as possible from the professionals and take your time comparing the pros and cons of each.

NEVER choose a builder simply because they are the cheapest. Remember – you get what you pay for.

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