ZIRCON LIVING BLOG

Ambassador Tips: Contact

We are here at the final milestone before you start building your Perth custom home. It’s the contract signing.

Since we made our selections, a lot has been happening behind the scenes, with planning applications and engineering reports being completed to get the final contact ready.

Your Prestart Consultant and Client Liaison will run through your contract. You’ll get to see the finishing touches from your selections and plan changes in the contract so we can start building your new home.

For some people, this can be a nervous time, and that’s understandable. But don’t worry, your client liaison will always be there to help answer any of your questions, and that’s even during construction.

Contract Preparation

You’ve decided to build your dream home. You have already chosen your layout and picked out all the fixtures and finishes. We have let you know that the next step you need to do in the building process is sign the construction contract.

It is essential that you read and understand the contract before signing it.

What You Can Expect from a Perth Custom Home Building Agreement

It is a huge commitment to hire a contractor to construct a custom-built home in Perth. It is important to understand what you can expect from a home-building contract and to make sure that you are working with a reliable builder.

The home-building process is incomplete without a contract. It establishes legally binding expectations between the buyer and the builder. The home building contract is a way to ensure that both sides are on the same page prior to the building in Perth starting.

A contract should be customised to meet your financial and personal needs because building a custom home in Perth takes so much time and effort. You and your builder must agree on the terms of the contract.

The contract for home building in Perth should be clear and comprehensive enough to cover all bases but easy enough to understand. A contract with a reputable home builder will not have hidden fees and be clear. A fixed price bid is the ideal contract. This means that both buyers and sellers will know the final price upfront.

 

What Is Included in a Perth Home Building Contract?

These are the essential details for a Perth custom home-building contract:

  • The scope of work includes materials, labour, and any other requirements or costs associated with the construction of your home.
  • These plans and specifications show the layout and design of your home.
  • Schedule: A time frame that details when the project will be completed.
  • Payment: The buyer’s fixed amount, the date it is due, and the method it will be paid.
  • Clauses that account for possible changes in the scope of work due to unforeseen events or buyer changes
  • Other legal provisions

It is important that your contractor takes the time to ensure you fully understand the contract. Trustworthy builders, like us at Zircon Living, will communicate clearly about their expectations, costs, and timelines.

 

Scope of Work

This section describes the work the contractor agrees to do. This usually includes obtaining permits from the municipality or other authorities, as well as furnishing the labour, equipment, and other services required to complete the house. This section requires that the contractor confirm the work to the house’s plans (drawings) and specifications. These should be attached to the contract.

 

Schedule

This piece of documentation legally binds the builder to you. Make sure you check the estimated time frame for developing your new property. This provides a clear understanding of the timeline. It also informs you that delays may be allowed due to weather conditions or industry shutdowns.

Other reasons for delays may be due to:

  • Owners postponed payment
  • Inspection delays caused by the municipality
  • Both parties may agree to changes or additions to the scope of work
  • Other issues beyond the control of the contractor

 

Payment

This section must clearly identify what, when, or how the owner will be paying for the building in Perth. Since the contractor will depend on the owner for funds, the payment schedule needs to provide a steady stream so that the house can be built in a timely fashion. A contract typically requires an initial payment before construction. A contractor will then apply to the owner for payment on a periodic basis. It will detail the work done during the cycle.

A project’s final payment is usually tied to its “substantial completion.” A contract might state, for instance, that the final payment must be made 15 days after the house is substantially complete. So long as “substantial complete” is properly defined in the contract, there is no problem.

 

Changes to the Scope of Work

Sometimes, once construction has started, the scope may change. This could be because the owner decides to put a bookcase in, etc. It could also be due to a requirement from the permitting authority or the discovery of an unexpected property condition affecting construction. Written work orders are required to reflect any changes in the scope and scope of the work. You should not just tell the contractor, “Yes, let’s go with our new plan,” without requiring written work orders that both of you sign. If you did not, you could face additional unexpected expenses.

 

What is Next?

Once the contract has been signed, construction can start. Provided that all permits and approvals have been obtained.

Locally experienced home builders are the best. High quality, reliable homes are built by local builders who have a good reputation and are experienced.

Zircon Living has been a trusted home builder in Perth for years. Contact us if you’re interested in building your dream home.

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