New Home Construction Agreement - Cost Plus

Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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This New Home Construction Agreement (Cost Plus) is between a property owner and a contractor for the construction of a new home. This agreement sets out that the contractor will be paid an hourly rate for all labor, materials and permit, plus a commission on the total price. It also specifies the expected construction timeframe, the home’s layout and specifications and how construction delays will be handled. It is crucial that this contract be set out in writing rather than via oral agreement. A written New Home Construction Agreement – Cost Plus will be helpful if there are disagreements or misunderstandings between the property owner and the contractor.

This New Home Construction Agreement – Cost Plus contains the following provisions:
  • Date of Agreement/Parties: The effective date of the agreement and names and addresses of the parties;
  • Definitions: Detailed definitions of the agreement terms including commencement date, substantial completion of home, term and working day;
  • Construction of Home: Sets out the time frame (number of months) expected to complete the construction of the new home;
  • Changes: Sets out that any changes to layout or specifications must be mutually agreed to in writing by both parties;
  • Contract Price: The contract price shall be paid based on an hourly rate plus commission and is set out in detail on Schedule C to this agreement;
  • Delays: The term of the agreement shall be extended if delays are caused by owner, public authority or if delays are unavoidable (i.e., a fire or union lockout);
  • Legal Compliance/Insurance: The contractor agrees to comply with all applicable rules and regulations and to maintain liability insurance at its own expense;
  • Warranty: The contractor shall set out in any specific home warranty in detail;
  • Schedules: The layout of home, details of finishes and the comprehensive payment schedule are set forth in Schedules A, B and C to this agreement.

Protect Yourself, Your Rights and Your Property by purchasing our attorney-prepared forms.

This attorney-prepared packet contains:
  1. General Instructions
  2. New Home Construction Agreement (Cost Plus)
State Law Compliance: This form complies with the laws of your state

New Home Construction Agreement - Cost Plus

Product Details

Product New Home Construction Agreement - Cost Plus
Country United States
Pages 11
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category New Home Construction Agreements
Product number #28994
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

A Cost Plus Construction Agreement is a contract where the contractor is paid for actual costs incurred plus an additional fee or commission. This type of agreement is beneficial for projects where costs may fluctuate.

The agreement includes provisions that extend the contract term if delays are caused by the owner, public authorities, or unavoidable circumstances like natural disasters. This ensures that both parties are protected in case of unexpected setbacks.

Specifications should detail the layout, materials, and finishes to be used in the construction of the home. This ensures that both the property owner and contractor have a clear understanding of the project's requirements.

Yes, having a written agreement is crucial to protect the rights of both parties. It serves as a legal document that can be referenced in case of disputes or misunderstandings.

Any changes to the layout or specifications must be mutually agreed upon in writing by both parties. This provision helps to avoid confusion and ensures that both parties are on the same page regarding project modifications.

Is This Form Right For You?

Use This Form If:

  • Individuals who are planning to build a new home may require this agreement to ensure that their contractor is compensated fairly based on labor and materials. This contract provides clarity on the payment structure, which can help avoid disputes over costs later on.
  • Situations requiring a detailed understanding of construction timelines and specifications will benefit from this agreement. It outlines the expected completion date and how changes to the project will be handled, providing peace of mind to both parties.
  • For those who want to protect their rights and ensure compliance with local laws, this written agreement is essential. It includes provisions for legal compliance and insurance, safeguarding the property owner's interests during the construction process.
  • Contractors looking to establish clear terms with property owners will find this agreement useful. It sets out the expectations for both parties, including payment terms and responsibilities, which can streamline the construction process.
  • Homeowners facing potential delays due to unforeseen circumstances will appreciate the provisions in this agreement. It addresses how delays are managed and extends the contract term if necessary, ensuring that both parties are on the same page.

Do Not Use If:

  • – This form is not appropriate for small renovation projects where a simple verbal agreement may suffice. In such cases, the complexity of a formal contract may be unnecessary.
  • – If the project involves fixed-price contracts rather than cost-plus arrangements, this agreement would not be suitable. Fixed-price contracts have different terms and conditions that are not addressed in this form.
  • – For homeowners who are not ready to commit to a contractor or are still in the planning stages, this agreement may be premature. It is essential to have a finalized plan before entering into a construction contract.
  • – In situations where the contractor does not have the necessary licenses or insurance, this agreement should not be used. Legal compliance is a critical aspect of the contract, and both parties must ensure they meet all requirements.
  • – If the parties involved prefer to negotiate terms verbally without a written record, this form would not be appropriate. A written contract is essential for clarity and legal protection.

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