Standard Building Contracts

Building contracts must incorporate the basic elements of legal contracts and adhere to state and local building laws. Standards vary by state and city and building contracts reflect the requirements of their regions.

Compliance

• Standard business contracts usually include a compliance clause that refers to the objectives of the state building law. Instead of repeating the language of laws, the compliance clause creates an agreement to adhere to all relevant building codes.

Consumer Fraud Acts

• Builders should pay special attention to state consumer fraud acts before drafting contracts. These laws put greater responsibility on commercial builders and developers and may prevent them from passing insurance or warranty responsibilities on to consumers.

Location

• In most places, standard building contracts must specifically name the location of the building by address.

Timeline

• Standard building contracts often include general timelines for the building to start, with attached schedules that chart progress. The contracts should also cover delays and unforeseen events if they include timelines.

Legal Help

• Any individual or business owner entering into a building contract with a commercial or professional builder should show the building contract to an attorney before signing it.