Choosing Your Contractor
Tuesday, April 29th, 2008Choosing Your Contractor
(Contracts between Contractor & Owner)
First, I would like to introduce our company. Wills Builders, Inc. is an Unlimited Licensed General Contractor specializing in the construction of high end luxury mountain homes including log homes and timber-frame homes. Our commercial construction company, Wills Builders-Commercial, Inc. is a bonded Unlimited Licensed General Contractor specializing in the construction of all types of commercial projects. Our areas of operations are in the mountains of North Carolina, South Carolina, Georgia & Tennessee. We assess taking projects in other states on a case by case basis. The counties in North Carolina that we operate in include Cherokee, Clay, Graham, Macon, Swain, Jackson, Haywood, Transylvania, Henderson, Buncombe & Madison counties. Some of the cities in North Carolina that we operate in include Murphy, Andrews, Hayesville, Robbinsville, Fontana Village, Franklin, Sylva, Bryson City, Cullowhee, Highlands, Cashiers, Glenville, Cherokee, Saphire, Lake Toxaway, Brevard, Waynesville and Asheville. The counties in South Carolina that we operate in include Oconee, Pickens, Greenville and Anderson counties. Some of the cities in South Carolina that we operate in include Westminster, Seneca, Walhalla, Clemson, Liberty, Cleveland and Marietta. The counties in Georgia that we operate in include Union, Towns, Rabun, Fannin, Gilmer, Murray, Whitfield, Catoosa, White, Lumpkin, Habersham, Pickens, Cherokee, Dawson, Forsyth, Cobb, Hall and Fulton. Some of the cities in Georgia that we operate in include McCaysville, Young Harris, Hiawassee, Blairsville, Blueridge, Suches, Helen, Cleveland, Dahlonega, Dawsonville, Juno, Cherrylog, Ellijay, East Ellijay, Talking Rock, Jasper, Tate, Nelson, Ball Ground, Waleska, Canton, Cumming, Silver City, Coal Mountain, Holly Springs, Blackwells, Acworth, Kennesaw, Roswell, Marietta and Smyrna. The counties in Tennessee that we operate in include Polk, Monroe, Blount, Sevier, Knox, Loudon, McMinn, Bradley, Hamilton, Marion, Sequathie, Grundy, Bledsoe, Rhea and Meigs. Some of the cities that we operate in include Ducktown, Copperhill, Postelle, Farner, Coker Creek, Tellico Plains, Madisonville, Sweetwater, Englewood, Etowah, Athens, Maryville, Townsend, Wear Valley, Gatlinburg, Pigeon Forge, Sevierville, Cleveland, Collegedale, Ooltewah and Chattanooga. We have worked with many types and manufacturers of log, timber-frame and SIP panel systems. We promote green building as well as energy star compliant construction. In the 12 years that we have been in business, we have established a reputation as a high quality, professional custom builder.
It is important to choose a reputable Contractor that will best serve the needs of your particular project. An important facet of achieving this will include the actual contract between the Owner and the Contractor. While most Contractors generally follow a common form, every one is different, and the contracts with which they do business will be unique to each individual Builder. The Owner should discuss this topic with any perspective Builders to get an idea of how they operate their business, and determine if their processes coincide with the Owner’s ideas of how their project should be managed.
The most common types of contracts entered into during residential construction are the stipulated sum or fixed price contract, the cost plus contract and the cost plus with a GMP (Guaranteed Maximum Price).
The lump sum or fixed price contract is basically an agreement that the Contractor will complete a particular project for a stipulated sum. The obvious advantage for the Homeowner in this case is the idea of having a predetermined set price for the project. The Owner must be able to provide an extremely detailed set of plans for the Contractor in this situation for estimating purposes. Once entered into this type of contract, any changes or deviations from the original plan can get extremely costly.
The cost plus contract is an agreement that the Contractor will complete a particular project for a percentage of the actual cost of the materials, labor and any other costs related directly to your project. This type of contract gives the Owner much more flexibility to make changes, or in a custom home situation, affords the Owner the ability to allow the project to “evolve” as it progresses, allowing decisions to be made as the project continues.
The cost plus with a GMP contract functions the same as a cost plus contract except that there is a maximum price set for the project that the Contractor guarantees the project cost will not exceed. Typically, if the total project cost comes in less than the GMP amount, the Owner and the Contractor will each receive 50% of the difference between the GMP and the total project cost.
When reviewing a contract with a Builder, it is important to make sure that any issues that could become a cause of misunderstanding down the road are dealt with in the contract prior to the execution of the contract documents. It’s important to be sure that the proper insurance that is needed for your project is either carried by the Contractor or acquired by the Owner. Make sure that the contract stipulates which types of insurance that the Contractor will provide. Approximate start and completion dates should also be stipulated within the contract, as well as how the contract price and payments will be dealt with on your particular project.
Regardless of which type of contract your working with, a complete, detailed contract is the best way to avoid unwanted disputes down the road. Be sure to have the Builder explain any parts of the contract that you do not fully understand.