Whenever working in a finite budget or limited space, there will always be sacrifices that are made to satisfy the entire project. It’s recommended to request a few design layouts and to refine the client’s needs over the process. Step 2 – Generate and Refine Design ConceptsĬreate design concepts with the third (3rd) party working on the project. Establishing a budget is the best way to meet with an architect, designer, or project manager to determine what can be accomplished and what materials may be available. For those living in northern areas of the United States, it may be best to have the construction occur during the summer months due to costs being more affordable. Step 1 – Budget and Schedulingĭecide the budget for the project and decide when it’s best to have construction begin. Although, every project is unique the following guide may be able to assist in planning a construction project. This roadmap is for clients and the contractor alike to help determine where the project currently stands and what items are outstanding for it to be completed.

How to Start a Construction Project (6 steps) (Video) Construction Contract – EXPLAINED.How to Start a Construction Project (6 steps).If the client is seeking to have the contract set up in a per square foot ($/SF) or another unit of measurement. The contractor makes a profit by charging the client more than what they pay their staff. The client pays the contractor for materials and labor at a negotiated rate. The client may also add a clause stating the total construction costs may not breach a specific amount. The contractor will profit by being paid a percentage of the total costs or a fixed fee. The client agrees to pay “at cost” for the contractor’s materials, labor, and any other expenses.

This is a lump sum that covers all materials and labor.

4 Types of Construction ContractsĪ price is given for the services provided. If there are any work orders or plans they should be attached in addition to any permits acquired from the local government to begin work. The agreement will detail the general contractor’s scope of work including, payment, and rights to subcontract any of the tasks involved in completing the construction.Īll details of the work should be included in the contractor’s agreement. A construction contract is used by a client seeking to build or remodel a property with the hired help of a general contractor.

Builder client contract template