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Introduction:
The
amount and extent of what elements are to be included in the
final set of contract documents vary greatly from project to
project. Some can be very simple and others require all of the
above. It is only possible to determine just how much will be
needed after examining the needs of each project. There is no
more good reason to over draw a project than for doing less
than what is needed. It is fair to say, that the more detail
provided in the final set, there will be less room for errors,
omissions and misunderstandings which is almost always interpreted
to mean a better building with less cost and fewer headaches
in the process.
Contract
Documents Listed:
1. The final set of sealed Architectural plans
2. Sealed and dated Engineer Plans
3. Specifications & Conditions
4. The Contract for Construction
5. Change order form
6. Schedule of Values for progress payments Form
7. Application and Certificate for Payment Form
8. Certificate of Substantial Completion Form
9. Certificate for Final Payment Form
10. Addenda, if any, issued prior to the execution of the Contract
for Construction
11. Proof of Insurance
12. Contractor Disclosure Statement
Bidding Instructions:
This is a special section that is used to format the process
leading up to the final contract for construction. It
often includes a list of how you want the estimate and/or bid
to be broken down into line items. It is used again later
to compare with the payment request schedule during the course
of the project.
Additional Unit Pricing:
If there are items that need to be considered that cannot be
fully described before starting on the project, additional items
for unit pricing can be included. Try to be as specific as possible
and state the amount.
Allowances:
Items listed here are those items you are going to provide at
your expense depending on what you select. Allowance figures
are just estimates provided to assist in making sure everything
is accounted for in determining the final total all inclusive
cost.
Specifications:
For residential construction whether new or remodeling, the
additional detail provided is specific to the job being done.
It will include names and model numbers of specific materials,
paints and fixtures. It may also include very specific information
about how and to what standards certain materials may be applied
during the work. All other required specific information not
included in the plans and the short form specifications will
be included here.
Specifications
also provide information about how the builder is to provide
his service and helps the owner make sure some basic information
that is not shown on the plans can be conveyed into the contract
documents. Some other issues that are often included might be
the hours of operation, how to accommodate owner live-in situation,
dust control, use of utilities on site and information about
when and how payments are to be made.
Contract for Construction:
This is the actual document between the owner and the contractor
which refers to the plans and specifications to describe the
work to be done, how it is to be done and when payments are
to be made as the work progresses. A good contractor and a good
contract are vital to a well built project with a minimum of
problems during the course of the work.The contract should always
include the Payment Schedule and the final fixed all inclusive
price .
Payment schedule:
The contractor provides an itemized list of the general phases
that will be included in the work that he is to do. Each item
will cover a certain percentage of completion of the project.Each
item listed will include the price assigned to that phase. This
becomes the payment schedule. The contractor will ask
to be paid upon the completion of each phase. Make sure
you know how you will be able to determine whether or not the
phase has actually completed.
General
Conditions:
This section covers how certain procedures are to be
followed, such as time allotted to make a payment once the application
has been submitted or how to resolve disputes.
Note:
No matter how hard we try, no set of contract documents will
be 100% complete. There will always be decisions to be made
during the construction process. It is important that the owner
and the builder set up good communication channels and work
together to use the contract documents to assist them in completing
the work as intended. All change orders should be done in writing
and sketches should be included to describe those changes when
appropriate even if it takes a little time. Verbal changes can
lead to misunderstandings which quickly can become amplified
as they are built and expenses start adding up.
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