Agriculture Reference
In-Depth Information
Once you have chosen a builder, you will probably sign a contract guaranteeing that the
work will be done as promised and that you will pay the agreed-on price. Contract require-
ments vary from state to state, so be sure you are knowledgeable about the pertinent laws.
You may also want to get a lien release from all of the suppliers and subcontractors who
work on your property. This will assure you that if your general contractor does not pay his
steel supplier and the electrician he hired, they will not file a lien on your property in an
attempt to get their money. If you have chosen your general contractor carefully, this type
of situation will not occur, but some companies working with limited resources may not
pay their bills on time and could put your property at risk.
Contracts
Contracts should be written in simple terms and should contain clauses that cover a
list of the attached contract documents.
• Agreement: Brief statement of project and price.
• General conditions: Definition of responsibilities of all parties to the contract.
• The drawings: The plan or blueprints.
• Technical specifications: Specific definitions of number, type, quality, and/or
brand of materials and products to be used.
• Supplement: Modifications to fit specific needs of custom project such as in-
surance and bonding.
• Statement of project, price, and responsibilities (such as who cleans up con-
struction debris).
• An outline of how subcontracts and separate (but related) contracts are to be
handled.
• Procedure of how plan changes are to be handled.
• Procedure of how disputes are to be handled.
• Statement of completion date.
• Outline of how and when payments are to be made, with interest charged for
payments not made on time.
• Statement of insurance requirements and safety responsibilities.
• Procedure to accommodate price, material, or completion date changes.
• Outline guarantees and procedure for dealing with defective work.
• Procedure to terminate the contract.
