Change orders that are written before signing a contract
jmw
5 years ago
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jmw
5 years agoRelated Discussions
Did you sign a contract before...
Comments (11)I will just speak of my expereince. We are building a custom home, we first went to the bank and found out what we would be approved for. That gave us an idea of what we could spend. The bank also gave us information on how the loan process would go (which has been a nightmare this past week with one thing after another popping up, mainly because of issues with seperating the land) We found our builder, which had a model that we liked, but needed to shrink it a bit to meet our budget, which the builder happily did and drew up a new floor plan that was almost exactly like the one we went through. He also supplied us with a spec list (17 Pages) that spelled out many of the material/items (not everything though) The next few weeks I emailed him daily with getting prices for certain upgrades (8' sliding door instead of 6', whole house surge protector, etc, etc) It must have been 20+ items he priced out for us. We went over the list and decided what to add to the house and what we could afford, still giving us a little room incase our allowance go above what is given (Cabinents/Appliances/Flooring/Landscaping/Lighting). I also found our "Credits" for items that I planned on buying on my own (Toilets/Kitchen Sink). He re-wrote the spec list to include the items we wanted, and gave us the quoted prices in the emails. He gave us a Contract and told us to look it over, I researched it and found it was a very general contract that did not "Favor" the builder (BE CAREFUL THERE) I seen that there was a few things missing (Start and End Date) I also added a clause about if an item/material was not stated on the spec list, that the same item/brand/material used in the model home we toured would be included. The builder was happy to add these items and we signed the contract. Our builder only requested 1% of the total cost to build in order to start, so your 15% seems very high IMO. That covered his cost for the revised floor plans, that he paid for in hopes we went with him, starting the permit process, and getting the lot staked out. Our builder submitted the permits to the city(which take around 2 weeks to be approved) We should be closing on our Construction loan soon (next week hopefully) We just locked in our 120 day build Mortgage rate and couldn't believe how low it is right now. I have been keeping our builder updated on the loan process and he stated once he gets the green light he will pick up the permits and start. In your case Jenwrens, it seems like things are being rushed on both ends. I assume the zoning board needs plans to review, but you shouldn't have to sign a contract in order to get the items needed for the zoning board from your contractor. Research Research Research, this forum is a great place. Get all your prices before you sign the contract, otherwise you go through the Change Order process and who knows how much the cost of an item might be marked up once the contract is signed. My .02 would be to Meet with the bank, find out what the zoning board needs, research the builder/contractor (references etc)get a more defined/updated spec list, before even looking at the contract. I like the idea of having a lawyer look at it, just make sure the lawyer specializes in real estate or builder/buyer contracts and has some experience. Going into talking with bank, builder, zoning board, make sure you get a list of questions (research) and not only have questions, but have an idea on how you want the question to be answered, followup with additional questions if the answer isn't something your hoped for our thought would be the answer. My builder stated he hasn't had anyone in his 10+ years that has gone as far as I have in researching him and his company (a good thing IMO) I also like the idea of getting an architect, if you can afford it, which we couldn't. If you have more follow questions let me know, I don't know much, but I sure have done my research on things and am in the process now and can relate....See MoreDid You Have an Attoney Review Your Contract Before you Signed?
Comments (10)Here's why I don't like liquidated damages in contracts: Firstly, Liquidated Damages means that from day one you start dickering about every delay day and whether it's an exension of the scheduled completion date (not subject to liquidated damages), or if it's a delay caused by the Contractor. SO, instead of actually working on your project, the Contractor is spending time coming up with reasons why the delay isn't his fault and shouldn't be subject to a measely $100 a day liquidated damages payment. Stuff happens, delays happen,enough said. Do you want them spending time getting written confirmation from a supplier that the trucking companies are backed up and can't deliver their lumber, etc.? or do you want them spending that time coming up with a solution? Contractors don't make money on projects that aren't complete, it's in their interest as much as yours that delays not happen (unless they're a bad contractor). Make sure you get a good contractor with good references and don't waste their time and yours with excuse making and arguments. Secondly, if you require liquidated damages, you'll simply get an inflated schedule so they can cover their ass (same as above). SO, you haven't really achieved anything IMO....See MorePlease help! Pool contract signed - PB changing what he said
Comments (11)Did you give him a down??? Has the builder already scheduled dig? Or is he working on permitting in your area Normally like you said the 3 days buyer remorse period is up and you are stuck. It is unfortunate that you got caught in this but it does happen. I am not saying he is a bad builder only that it seems as you were rushed through the contract. If he is a reputable builder then he will sit down with you and go over the issues and probably work out a resolution. I have run into the misunderstandings before and normally there is a compromise. No builder wants his customer leary of him from start of project. As far as the design. My designs sometimes have items (upgrades) in them at time of sale that the customer does not want to pay for upgrade. It is what is on the contract that holds up in court. Good Luck, David...See MoreNew Build - Questions for Builder Before We Sign a Contract
Comments (133)@Rai Kai … I did learn so much!! Thanks for your contributions! @Beckysharp haha. I will be doing more research with the lawyer. I think overall my realtor was good—but I am not sure if overall we were the right fit. We will see if we stick with her. I know she put a lot of work and time into it --- so I do feel bad about us not going through with it. I will be doing more research and googling, and reading and using all my resources! Promise! @PitrateFoxy – I’ll probably be doing some research on a lawyer to have “on call” when we are at that point. You all were so right about all the other things – and I’m sure a few extra hundred bux (what like 500? ) will put me more at ease as I don’t like surprises unless they flowers, chocolate, or kisses :D @bellburgmaggie – isn’t that the truth. Alos.. Houzz app isn’t going anywhere! I love your story about finidng the right place! Man.. 3.5x your investment!! AWESOME!!! Were you ever concerned about over improving? That’s my biggest fear, especially if we buy very low… You know I always imagined buying the house with the crappy wall paper, shag carpet and pink or green tile in the bathrooms a horrible kitchen and then putting in my DREAM kitchen (or as im learning from houzzers, my 99% dream kitchen!). I think that’s something I was struggling with buying new. Even though I got to make a few selections… it wasn’t tailored to me really. So asking my husband in 3 years to redo the layout of the kitchen wasn’t going to fly :D Location location location is so hard for us. We are transplants – with family in the area, but are having a hard time finding the “right” home town. Everywhere we look is “safe” but I really want that neighborhood feel. I moved to Texas because I love saying yes sir, no ma’am, and I want to raise my kids like that. Sweet tea on the porch and waving to your neighbors. I want to make meals for new moms, or help out my grandparents when they need it. I may not have the Texas accent, and as the saying goes “I wasn’t born in Texas, but I got here as soon as I could!” @jannicone – I’m not deleting Houzz!! Just Realtor, Trulia and Zillow :D It may only last a week, but I need some distance! But I will use it as a resorce to keep an eye on the market and see what really happens during “selling” season. Happy to be sorta liked! @Denita , I should know better. I’m a firm believer that EVERYTHING is negotiable and if you aren’t willing to make any changes (they may not have lost me if they let me go to the design center and let me have 2 extra days – would have cost them nothing) I’m not inclined to play ball. Especially in an industry where negotiation is nearly expected. Looks like I have some more homework and research to do! I may need to find a new realtor. Not that she wasn’t good. I felt like she was doing a good job – but I’ll never know if she asked the builder for things. She did make us feel like her only clients, and she was very attentive and listened to my concerns. But I did get a slight feeling that she was “building” up the home a little more than she should have. We signed a contract for 6 months with her. She led with “if at any time you are done with me, I’ll just rip it up.” Who knows if that will come back to bite me in the butt. But, also thought we were going to end up with the first house and it would all be over. Again, lack of experience on my part. I've done some research on how you should select a buyers agent... and I did kind of do it all wrong....See MoreJeffrey R. Grenz, General Contractor
5 years agolast modified: 5 years agojmw thanked Jeffrey R. Grenz, General Contractorjmw
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