Gone are the days a deal was sealed with a handshake. Nowadays you need a contract for this, a contract for that, a contract for pretty much everything.
As buildings and renovations are such a big investment, you need to get the right contract for you.
To help you, the new Master Builders A-Z Building directory can help you find answers and avoid building and renovating disasters!
It contains more than one hundred and eighty popular topics, so all you’ll need to know is which contract you want and suits you. You can even order these contracts online!
Charles Anderson, Master Builders Contracts Manager is the man to know when it comes to understanding contracts.
According to Charles, Fixed Price (or lump sum) Contracts are more common.
“The builder prices the work, adds a margin for overheads and profit and the parties agree the contract sum and sign the contract.
The builder is undertaking to build the project for that contract sum. It could change somewhat if there are agreed variations to the work, for example, but generally fixed price contracts give reasonable certainty.
A Cost Plus Contract is where the builder passes the direct cost of labour and materials plus an agreed builder’s margin on to the owner as the job is carried out.
The final cost won’t be known until the end and it could be more or less than you anticipated. It’s this lack of certainty which you have to bear in mind.”
An early decision about the type of contract that best suits you will save time, headaches and plenty of frustration, not to mention your hard earned cash!
For more info, jump onto mbawa.com.
