Owner’s Resources
Understanding the Billing Contract
Key Documents
- Purchase Agreement
- Blueprints and Specifications
- Option and Color Selection Sheets
- Lighting Schedule and Site Drawing
- Limited Warranty
Price and Allowances
Total Cost: Stated in the contract and subject to change based on your selections and change orders.
Allowances: Budget for items like carpet, cabinets, and appliances. If costs exceed the allowance, you pay the difference.
Commence and Complete Construction
Preliminary Tasks: Approved loan and permits are required before construction begins. Delays may occur due to labor shortages, weather, or change orders.
Change Orders
Impact: Changes can delay the schedule and increase costs. Limit change orders to avoid complications.
Conformance With Plans and Specifications
Builder’s Rights: The builder may make necessary changes due to code revisions, site conditions, or supplier issues. Substitutions of equal or better value are standard.
Plan Ownership
Intellectual Property: The builder typically owns the house plans, even with custom changes. Limited use may be granted at a significant cost.
Site Visits
Restrictions: Due to safety regulations and insurance liability, site visits are scheduled at specific stages.
Non-Interference
Communication: Direct any input to the builder, not the workers, to avoid confusion and ensure proper handling.
Inspection and Acceptance
Final Review: Before closing, you will inspect your home to confirm it meets all standards and includes the ordered items.
Signing the Contract
Enforcement: The contract is enforceable once all parties sign. Review all paperwork carefully during the signing meeting, which can take a few hours.
By understanding these components, you can navigate the billing contract confidently and ensure a smooth start to building your new home.