Garage Construction Contracts

[Mikej1]

So, I am finally ready to get a nice new 20x28 detached. For those of you who contracted this out, what type of "wording" did you specify? Such as, a hard date finish, +/- tolerances, how and when to pay, various specs to call out etc. Thanks for any information, I am just looking to not be surprised once this starts off. Actually I am really hoping my wife doesn't yell at me for the mess and overages etc.

 

[glentre]

You are correct in wanting to write a contract for your new garage but should understand many garage contractors will steer away from a well written contract that specifies in detail every part of the construction process. Often, it's because they want to be in control and not you. Without specs, their mantra regarding any questions or objections from an owner is "that's the way we've always done it". You will never see a commercial project without detailed specs and that is for a reason. The architect or engineer wants the finished building to be what the owner wants, not what the contractor wants. For this to happen, you will need to be extremely specific in your written specs, describing in detail every aspect of the job from land clearing to final paint and cleanup.

Good contractors will welcome good plans and written specifications because it tells them exactly what they need to do and avoids conflicts with the owner during the process. It prevents the owner from causing problems like, "that's not the way I envisioned it" and the contractor saying, "that's the way we have always done it. If it's in the specs, then it gets done with no arguments. If it's not in the specs, then it doesn't get done unless the contractor gets a change order and the owner pays for it. Fair is fair for both sides.

Of course, this requires the spec writer to be knowledgeable about all phases of construction and the owner would be wise to have this done by a pro if he is not capable himself. This forum is full of owner complaints about contractors and problems between them and the owner. Most of these problems are caused by insufficient communications before and during the building process. A well written set of plans and specs will resolve most if not all of these potential problems.

For the uneducated, a search on the internet will bring up some good advice on writing specs. I have had several houses built and recently finished my garage project. Good specs saved my **** on these jobs because it forced me to think about every detail I wanted and get it down in writing so the contractor knew before starting just what he was going to be responsible for. While it is harder to find a residential contractor who will bid on a job with strict specs, you will be more than glad you addressed this crucial part of the process when the job gets going.

Glen

 

[glentre]

I might add that when negotiating with potential contractors, they should be made aware that you are open to suggestions on altering your specs should they have better ideas or things that could save you some money without jeopardizing what you want in the final build. As professional builders, most know more than owners and even architects/engineers about actual construction and can help you modify your specs if it is beneficial to each side both before and during the process.

Glen

 

[matt_i]

My advice is keep it simple enough to get the main specs and not be overloaded with details. Have a detailed drawing as the standard for what is to be produced and a set of bullet notes about other specs.

My other advice is to have a conversation first and go thru all of the points ahead of time and reach a basic verbal agreement. That way the contract is just formalizing (cementing? ) an existing conversation rather than the owner trying to capture every little detail to insulate themselves from problems and the contractor trying to imagine all of the whacky potential money-losing pitfalls if they agree to the terms.

 

[nadogail]

Oh Boy, I feel a lecture coming on.

With a detailed and hard negotiated contract, IMHO, you will get only what you detail in the contract. If, for example, you want paint the paint will meet your minimum specification and not a bit more.
If you specify that electrical work must meet Code, remember that the Code is the minimum acceptable standard.
My thoughts are to engage in a partnership with the builder to allow the builder to bring all there knowledge and experience to the job so that you both have a project you can be proud of.

Mutual respect and trust will, IMHO, get you more than a list of demands.

You can catch more flies with Honey than you can with Vinegar.

 

[Mikej1]

Interesting perspectives, thanks for the replies. I am most concerned with the finish date, I just dont want to have the project dragging along.

 

[dcg9381]

Mike, dunno where you are but here general contractors are not (typically) licensed. I totally agree to come up with firm plans and specs - they are the "fall back" in case of a disagreement.. But a contract is only as valid as the guy who is backing it. Around here, lots are DBA (Doing Business As). In the event of a major screw-up, many aren't going to be able to make it right. Whatever you do, contractor stay behind in terms of payments. If he needs money for materials - consider paying for materials directly.

 

[glentre]

With regard to the finish date, of course there should be a fixed date you and your contractor agree with but that date is unenforceable. There are some things neither you nor he can control, particularly the weather and availability of materials and labor especially during the current covid19 crisis. Also having local officials who drag their feet regarding timely inspections on the various phases of the job. You could implement a completion penalty clause.......but if you do that you won't get anybody to bid on the project or they will highly inflate cost to cover their butts.

Care in selecting a contractor is very important if your priority is finish date. Reputation and references on his past jobs would be helpful in determining if he sticks to a project or comes and goes. Some contractors take more jobs than they are capable of handling and try to do several at the same time, working a week or two at each and leaving you high and dry in between. Some larger contractors who have repeat customers, say home developers, will leave you whenever their "main man" needs them. Remember, it is unlikely you will ever need them for any future construction and they know that. So, staying off your job for weeks at a time does not hurt them.

Basically, you will not reasonably be able to make a contractor meet a certain delivery date even if you both agree to one. Best bet is to do your research, go on reputation, be respectful and get along with your contractor and above all, pay him on time in accordance with the agreed upon terms.

And, I still strongly advise to prepare a mutually agreeable set of detailed specs to leave as little as possible open to interpretation, questions and disagreement. If you say walls must be painted then what? Primed first with what? How many coats of prime and finish? What sheen? Rolled or sprayed? What quality......cheap box store brand or top of the line Sherwin Williams? Unless specified otherwise, you will generally get whatever is cheapest or easiest for the contractor. Same goes for everything else on the job.

Glen

 

[vavet]

Two issues that came up with my build:
1. The corners of the building were staked correctly. When the trees were cleared, the stakes were moved out of the way. The footers were dug and poured on the same day, but not in the right place. My HOA requires outbuildings to be located behind the rear foundation line of the house. I did not have any record of telling the GC about this, but I know I did verbally. I had to stop the work, go back to the HOA to get approval for the non-compliant location (they agreed), and then work could commence again.
2. Completion - I was explicit from the beginning that I wanted gutters. He told me the county required them before they'd issue an Occupancy Certificate, so I didn't get worked up about it not being on the contract or drawings. When it was done, there were no gutters, but he had the Occupancy Certificate from the county and he wanted my final payment. I balked because to me, it wasn't done. The contract specified that I owed him the final payment when he got the Occupancy Certificate from the county. He promised the gutters were coming in the next couple days, but we know how that goes. I didn't pay, the gutter people showed up and installed gutters....I paid. Not sure if he couldn't pressed that issue or who would've won, but luckily it didn't come to that. If he would've refused, then I would've offered a partial payment to account for the gutters.

 

[u2slow]

I went with a proven, available, builder - on time & material - that was willing to tackle my unusual build.

It might have cost more, but darn... it sure got built quick. Builder just asked some key questions on material choice along the way.

 

[SarcasticDwarf]

To back up what glentre has said, a contractor normally (when working with anyone but a homeowner) is responsible for means and methods only. That means that the architects and engineers tell the contractor (in writing through plans and specifications) what should be built but not how it should be built.

 

[Showkey]

With in reason +/- 30 days.......the last thing to worry about is the finish date. Rush to meet an artificial date makes nobody happy or satisfied.

Things like really matter in the quality and price:
Concrete thickness, bag mix, rebar, mesh, fiber
Roof 15 year vs 50 year shingles, ice water shield, synthetic paper
Insulation, power outlets # size voltage, 100 amp panel, HVAC,
4” vs 6” walls, truss type
Insulated garage door, windows, man door

 

[pmiranda]

Most projects I’ve been involved in have a contract with general terms (dates, payment terms, etc.) and reference a set of detailed plans and specs.

 

[yeldogt]

Plans control the bid and the build .... when there is an issue the plans are the plans. They rule.

Most residential jobs suffer from poor plans .... read so many posts here. I did my own drawing .... no problem -- just download them.

Most people building something for the first time think the builder/contractor is going to come to them with this 50 page contract spelling out how many nails are going to be used to attach the trim ... forget that.

Obviously a simple garage can have basic stuff spelled out -- siding/roof/gutters/trim material/ concrete strength and install method if you are heating it. But -- if you have a drawing .... that's all labeled.

If you need it done by a particular date -- it should be spelled out ... but, my guess is no residential builder is going to take a penalty clause

 

[vavet]

I actually told my GC that I was not in a rush. If he had subs that he knew were better, then I didn't mind waiting for the better people. He spend 3 weeks actually building. There was a 2 week delay in the middle because of the aforementioned footers being in the wrong place and having to go back to the HOA.

 

[mcbane]

An important thing to include in any contract is a payment schedule. Most contractors want to front load the payment schedule so they can receive 90% of the money by the time only 10-20% of the work is done. That greatly increases risk to the homeowner.
Once you have handed over your money you have very little leverage to get the job completed in a satisfactory manner.

Ideally, you and the contractor agree on a sequence of work with costs for labor and materials associated with clearly defined milestones. And you either pay when milestones are completed or pay a percentage where a milestone is partially completed. But you avoid paying for work that has yet to be done or for materials that have yet to be delivered to the site.