Contracts are negotiable and are primarily intended to benefit the person or entity that paid for them to be drafted.  The Architect's contract benefits the Architect. The GC's contract benefits the GC.  The Owner's contract protects the Owner.  But you don't have to sign the contract as presented.  You can negotiate. 

​

When confronted with a contract someone else drafted, here are some of the things you should look for: 

​

• Who is responsible for getting the permits?

• Is the contractor obligated to follow a set of plans? 

• Who checks to see if plans are followed?

• What happens if the plans aren't followed?

• Is the builder to be paid a fixed percentage (cost plus), a specific fee (contractor's fee) or an agreed amount (agreed sum)?

• What is the approval process for paying the builder?

• How long does the owner have to pay the builder?

• Who decides whether to pay the builder?

• What happens if a subcontractor is not paid?

• Is the owner obligated to inspect the builder's work?

• What happens if work is rejected?

• Which subcontractors will perform work?

• Do the subcontractors have written contracts?

• Do the subcontractors have insurance?

• How does the change order process work?

• Does the builder guarantee completion by a specific date? 

• How are the warranties limited?

• Does the builder warrant its own work or farm that responsibility out to a third party?

• What happens if the builder stops work?

• How is "default" defined in the contract?

• What insurance must the builder carry?

• Are the parties bound to arbitration?

• Does the contract prohibit recovery of certain damages?

• Is a residential construction contract accompanied by the Disclosure Statement required by Texas Property Code Section 53.255?

• Does the residential construction contract refer to the Residential Construction Liability Act? 

• Does the residential construction contract say this:

​

The Spaeth Law Firm drafts custom construction contracts to fit your needs.  ​