Tag Archive: Contracts
Contracts – Provisional Sums
All new house building contracts will have a section for Provisional Sums. These are used for work that MAY be required, but the builder can’t provide an accurate estimate at the time of signing of the Contract. The main area…
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Contracts – Prime Cost Items
Some new house building contracts will have ‘Prime Cost’ items. These are used for fixtures, or fittings, which the Client requires, but have not been finally selected prior to signing the Contract. An example would be they want a professional…
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After The Deposit
If you decide that you want a house built by a builder you will normally be given a budget price and asked to pay a deposit. What happens next? These are the steps that follow in progressing to a full…
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Contract Documents – Order Of Importance
Of course the contract documents are the most important thing when organising the building of a new house. However not many people realise that some parts of the contract document are more ‘important’ than others. All three of these parts…
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Cost Plus Contracts – Avoid
What Is A Cost Plus Contract Basically it is a contract where you agree to pay all the builders ‘Direct Costs’ plus a ‘Fee for Administration and Profit’. Rather than a quotation the builder provides an estimate with the actual cost…
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Beware of Escalation Clauses
What Are Escalation Clauses These are a way of allowing for inflation. Basically it provides a way for the builder to increase his costs in line with inflation. The Clause will quote an inflation index which can be used to…
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Contracts – Contract Period
In your house building contract it will quote a Building Period. This starts when the contractor actually starts work (Site Clearance) The period will be in days. (Calendar days not working days) The time should allow for any expected loss…
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