Need help with construction contracts or documents? Of all transactions entered into by consumers, perhaps the most frightening of all is a construction contract. Due to the large investment a typical construction project requires, consumers should be especially cautious in making sure the written contracts accurately reflect their understanding of the deal, and provide them with the protection they need in case of contractor default. It is no secret that most contractor contract forms are minimal in nature, providing little protection for the homeowner. A comprehensive agreement is imperative to protect your investment. In a typical construction project, things can and will go wrong, resulting from a wide range of usual suspects: carelessness, indifference, weather-related problems and/or financial misunderstandings. When such issues do arise, the only recourse is to fall back on the written agreement of the parties. If the important details are not addressed in a comprehensive manner, the project, along with the owner’s hopes and dreams, lie in serious peril. The documents reflected below set forth provisions that are fair to both owner and contractor, facilitating the level of trust necessary to achieve a successful result.
Available Packages:
- Construction Contract Only
- A Construction Contract is all-important in clearly setting forth the agreement between owner and contractor. It is important that the agreement clearly spell out what the owner can expect for the agreed upon price, including specifics on each item contained in the plans and specifications. For instance, if the contractor provides allowances for items such as countertops, make sure that he/she can actually provide the type countertop you are expecting (wood, marble, granite, formica, etc.) for the quoted allowance.
- Documents included:
- Construction Contract (Turnkey or Cost-Plus)
- “Follow-Through” Instructions
- Construction Loan Documents Only
- Texas law is very unique when it comes to fully documenting a loan for a residential construction project. If the documents are not done properly, a lender will lose the ability to foreclose and take over a doomed project. Following the Texas formula is imperative; no shortcuts are effective. In essence, and in addition to the construction contract, an owner and contractor must execute a “Mechanic’s Lien Note and Contract”, which are in fact financial documents as opposed to construction contracts. The contractor then assigns the Mechanic’s Lien documents to the lender, who renews and extends the terms of the Mechanic’s Lien documents into their own Promissory Note and Deed of Trust. Complicated? Yes. Important? Double Yes.
- Documents Included:
- Mechanic’s Lien Note, Mechanic’s Lien Contract, Note Endorsement, Assignment of Contract, Construction Note, Construction Deed of Trust
- “Follow-Through” Instructions