Before a licensed Contractor begins the work of building your dream home, you first have to sign a construction contract which will define the specifics of what the Contractor will be required to do. Unless you are an expert on building a home, then this process is likely foreign to you. And therein lies the problem that creates bad feelings, distrust, and 90% of all horror stories between home builders and clients.

When it comes to having a contractor build a home, the contractor works for you. The contractor runs the job but ultimately you are the boss. Whatever you want, it is the contractor’s job to make it happen and advise you. There may be change orders or overages involved, but if the original contract covers how each will be handled, then there should be no problems between the Contractor and the clients. We say this to empower the owner with knowledge of how to handle the situation if they feel they are being taking advantage of. So a good construction contract will address change orders 9 changes and additions made by the client as the project progresses) before they occur, so the client knows the costs involved.

Read Before You Sign

The details of the construction contract are the difference between a happy client and an upset one, and the specifications in the contract are not to be taken lightly. When you sign a construction contract, you are bound by what has been laid forth in the documents and should research them vigorously. When a client does not do their due diligence, it puts everybody in a very bad position. The contractor believes that he has met all of your expectations only to find out during construction that you as an owner never really understood what you were signing. This is usually where the problems start.

The solution is to draft a better contract that is easily understandable and make sure the owner know what they are signing before they actually sign.