6. Change Orders Change orders are a method for agreeing on costs and procedures for changes the owner might want to make after the contract has been signed. This section outlines those costs and procedures and addresses scenarios in which the builder may refuse to make certain changes. Owners should keep in mind that change orders often add to the timeline of your project. Contracts should clearly specify who may approve change orders. 7. Holdbacks Custom homebuilding contracts must comply with the Builders Lien Act . The Builders Lien Act requires each party that is paying out to a company to retain, or “hold back” ten per cent of the amount owing until the work is substantially completed and the holdback period has expired, ensuring that no liens have been filed against the property. 8. Deficiencies This section defines quality standards and outlines procedures to fix deficiencies should they arise. 9. Delays
The Canadian Homebuilders Association of British Columbia has a variety of sample contracts that you can order at chbabc.org/order-contracts/ . You can also contact the Canadian Homebuilders Association of British Columbia directly at info@chbabc.org to order contracts. For more information on safely hiring a contractor and ensuring you have a proper written contract that protects you, refer to CHBA’s Get it in Writing toolkit . We highly recommend that you consult with legal professionals specializing in construction law before signing a homebuilding contract. What’s a Change Order? It’s almost impossible for the homeowner or the builder to anticipate all aspects of a project from the very beginning. Homebuilding contracts include change order provisions for this reason. A change order is an amendment to a construction contract that changes the builder’s scope of work. For example, the homeowner might want to add something that wasn’t included in the original designs, like an extra window or a more expensive finishing. A change order provision should establish very clear procedures for making these types of changes. For example, this provision should clearly state who is responsible for approving change orders. Most construction contracts explicitly state that a change order must be made in writing and be agreed to by both parties.
This section outlines provisions for handling delays and establishes clear communication channels for addressing timing issues promptly.
Understanding the types of custom homebuilding contracts and their terms is essential for ensuring a smooth and successful building process. By carefully reviewing contracts, clarifying expectations, and addressing potential issues upfront, homeowners can mitigate risks and achieve their dream home with confidence.
Hiring a Builder in BC: A Consumer Protection Guide
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