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How Detailed Should Your Residential Construction Contract Be?

A construction contract attorney can assist you if you are entering into a contract for residential development. Whether you are a homeowner building a house for yourself and your family or a real estate investor who wants to build residential housing to rent or sell, you need to make certain that your construction contract provides the protections that you need. 

Your contract should contain clauses that ensure the construction will be performed according to acceptable standards, that the construction will be completed on time, and that the pricing will be within your budget. The more comprehensive and detailed your contract, the greater the chances you will end up with a finished product you are satisfied with and that will be a good investment for you.

Curley & Rothman, LLC has extensive experience negotiating the terms of residential and commercial construction contracts. We can help with negotiation of the contract, with drafting an enforceable agreement, and with resolving contractual disputes that may arise during and after the construction project. Give us a call today to talk with a Pennsylvania construction contract attorney to find out more about the ways in which we can assist you.

How Detailed Should a Construction Contract Be for Residential Construction?

Your residential construction contract needs to be very detailed. It should include complete information on the cost of construction, on the timeline for construction, on who will be performing work, and on when the construction project will be completed. If you wish to ensure a project is completed on time, you may also consider including clauses to provide penalties for delays that result in the project getting off schedule.

Your contract should include blueprints and drawings with square footage information and other essential details necessary to get the big picture of what the finished project will be. It should also provide details about each of the utility systems in the home and each of the features to be included in the residential construction. Everything from the specifications for insulation to the kind of water heater and flooring should be included in your contract.

You should also be watchful of whether there are allowances in the agreement or whether everything is done on a fixed price basis. If there are allowances, cost overruns during the project are possible. For example, if you are given an allowance of $5,000 for lighting, you could quickly exceed this amount and end up having to pay out of pocket or borrow more money than expected to get the lighting that you need. If you are able to make all of the decisions before the project begins about each component to be used in the home and each feature of the home, there will be no reason to include allowances and you will have a very clear idea up front of the total cost.

Having a detailed contract is important not just for your own planning purposes and to ensure the project turns out as expected, but is also important for purposes of getting a construction loan, since banks will use your contract to do a pre-construction appraisal and assess an appropriate amount to lend.

Why Should You Get Help with Your Contract from a Construction Contract Attorney?

You should get help with a residential construction contract from an experienced attorney because drafting a contract is complicated. You need to make a number of decisions, including whether to use a fixed price, cost plus, or guaranteed maximum price construction contract. You also need to include clauses to protect your rights, and ensure the contract is detailed enough that you get a finished product you are happy with.

Curley & Rothman, LLC assists with contract negotiation so a deal can be reached that both a contractor and developer or landowner can deal with. We also help make sure contracts are drafted in clear and enforceable language, and we provide assistance with contract interpretation or claims for damages if problems occur.

What Can a Construction Contract Attorney Do For You?

Curley & Rothman, LLC understands the ins-and-outs of contract negotiation and drafting in residential construction projects. When you are embarking on the development of residential real estate, you are making a big financial investment. You owe it to yourself to protect your interests and make sure your investment is a good one by drafting a contract that ensures an acceptable quality finished project. Let us help you to write a detailed contract that will ensure high quality construction and provide legal remedies for failures.

To find out more about what a Pennsylvania construction contract attorney can do for you, give us a call at 610-834-8819 or contact us to speak with a member of our legal team.

Real EstateScott Rothman