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Top 10 Design Elements | Define Your Objectives | Choosing a Builder | Construction Contracts | Selecting Land | Building Permits | Construction Process | Construction Financing | Construction Cost Over-Run |

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Construction Contracts

There are hundreds of construction contracts. Some are very thorough and some are not. Most lenders will require that your contract specify the cost to build your home. The contract may also include:

• Start date and completion date
• Detailed list of building specifications and materials.
• Payment arrangements
• Policies, procedures, responsibilities, scope of work and costs for:
• Building permits
• Site preparation
• Allowances
• Change-orders
• Delays
• Insurance: Personal liability, workers compensation and property damage
• Lien waivers
• Job site conditions and clean-up
• Warranties
• Dispute resolutions

Beware bids that are at the extreme ends of the price range. Find out why one is so expensive or so low. Be especially careful about accepting low bids—you may be setting yourself up for cost over-runs without a means to pay for them.