When a builder constructs a house without a contract, it is known as a spec house or a speculation home. There are several advantages to the builder to build a spec house including timing, financial gains and workforce retention. There are advantages to the buyer to purchase a spec house as well. These include no delay in moving in, an overall lower price, and a simpler contract.
The construction contract is a formal agreement identifying the terms and understanding between the contractor and the purchaser. The document has many clauses that greatly impact the contractor. Learn about these respective clauses in the construction contract and how to word them to financially benefit your company.
This section covers the three traditional trades that require a license from their respective state. This is your HVAC installer, the electrician and the plumber. In some contractor may wish to include the septic tank and water well installer. However, I prefer these two be included in the site development phase as they do impact the site and there is only one connection to the main builder for these two particular trades.