Before any work commences on your renovation project, it’s essential that you sign a written contract with your chosen builder. A contract sets out your expectations and obligations in a legally binding format. If any concerns pop up during the renovation process, you will always have your contract to fall back on. A contract can include things like project costings, contractor roles, start and end dates, dispute resolution plans, as well as details about the expected quality of the work.
Fixed Price Contracts
One of the most common building contracts is the fixed price contract. In a fixed price contract, your builder will handle every aspect of your project, including labour, materials, subcontractors, project management and inspections. When you sign a fixed price contract, you’ll be quoted a flat fee before work commences, so you’ll know exactly how much your project is going to cost. If anything changes during the renovation process, your builder will provide an updated budget for you to approve before work continues. The streamlined process and decreased workload of a fixed price contact mean most homeowners will choose this option when renovating.
Labour Only Contracts
The second type of building contract is the labour only contract. A labour only contract means your builder is only responsible for construction work. The homeowner will have to manage all other aspects of the renovation process, including project supervision, hiring subcontractors, liaising with the architect and organisation inspections. Depending on the type of labour only contact you’ve settled on, you may also be responsible for sourcing and purchasing building materials. If you’re confident in your project management skills and you have the time to spare, labour only contracts can be a way to save money on your home renovations.
Other Building Contracts
If you’re finding it difficult to choose between a labour only and a fixed price contract, you should know that you aren’t limited to these two options. With help from the professionals, you can draft your own contract that satisfies all your different needs. Many builders are happy for you to adapt parts of a contract to suit you. As long as the contract is legally binding and all parties are satisfied, the contents of the contract are up to you.
Which Building Contract Should I Choose?
Drawing up your building contract is one of the most important steps in the renovation process. Don’t feel pressured to sign a contract after the first meeting with your builder. and always take your time to consider your own requirements. Do you have experience in the home renovation process? Do you want full control over every part of your project? A labour-only contract could be your best choice. Is it important for you to know how much your project will cost upfront? Are you happy for someone else to manage your renovations? A fixed price contract might be the one for you.
At I Build Solutions, we deliver high-quality home renovations that always put quality first. Contact us anytime to start discussing your next project.