agreement

All experienced contractors know where the difference between owners and contractors comes from. Because they have already built at least a few houses.

When you ask them to bring a building contract agreement, they bring the agreement, which is important to safeguard their interest. Not the owner’s interest.

Most new users planning to start construction don’t know about those insider construction points that must be included in the agreement.

So, to make their job easier, they go with the whatever the contractor bought agreement and deal done.

We also did the same thing. But while picking contractor, we filtered a lot. It helped! So everthing went well in our case.

Now… if everything goes well between you and the contractor, the agreement doesn’t matter.

If… you and your contractors have any differences, the contractors start ignoring your project, and you get angry.

Not just that…

Sometimes, even disputes arise depending on the contractor’s nature.

If you have a solid agreement mentioning the most important points in the agreement regarding work scope, payment terms, responsibility, etc.,

You have something to speak to your contractor regarding work scope and all… your contractor will listen in that case. Because it’s in writing. There is nothing to hide.

Suppose this is the first time you are trying to start house construction. In that case, I recommend at least discussing with a few of your friends who have gone through house construction experience recently so they can share their thoughts with you.

Before signing any agreements, show them to your friends and ask their opinion… if they give some suggestions, you can request the same from your contractor to make changes.

By doing this type of exercise, you will avoid making a few mistakes.

(or) You can also learn from my experience by taking a ready building contractor agreement template & guide on picking a good labour contractor by visiting the URL below:

https://houseconstructionguide.com/building-contractor-guide/

Whatever the option you choose, don’t take a decision in a hurry or alone.

Happy Weekend.

Arun

Choosing a good contractor is definitely more important than choosing a good agreement.

A good contractor can make a lot of adjustments to his work scope.

Still, it’s always better to have a proper responsibility in written format than just taking it for granted.

We don’t know what happens once the work starts.

I remembered one bad incident in my first house construction experience for this context.

We picked an electrical contractor based on the recommendation of my dad’s very good friend, who is his own brother.

Everything was good until we started questioning his work quality…

Slowly, our relationship with our electrical contractor started falling apart.

We had a few verbal fights during the construction period.

During the final settlement, he simply demanded extra payment, saying, This is extra, and that is extra….

He even questioned what proof we have.

That’s when I started implementing House Construction Tracking System in my second building.

Thankfully, it also helped in a few such incidents during the construction of my second building.

After learning lessons from my first construction, I implemented everything in written format.

Only my building contractor has an agreement format; the rest are written in a diary with important contract details.

Because building contractors is one of the most expensive things, we went with the agreement format, which was bought by my contractor.

If you see my agreement, it contains only a few details and favours my contactor.

It is not an owner-friendly contract.

In my building contractor guide, I explained all the important points that must be included in the agreement.

Now, I have prepared the Labour contract agreement template itself. All you need to do is modify the template according to your requirements.

The agreement comes inside my building contractor guide. If this is something you are interested in, visit the below link:

https://houseconstructionguide.com/building-contractor-guide/

It was raining outside.

Today three college students came and called me. One guy asked, “Sir, can you give me the receipt for paying the token advance?”

Me, “Receipt? What receipt are you asking for?”

Guy: “I paid a token advance to book the house for that one.”

For your information, this guy paid a token advance a few weeks before itself. Now, all of a sudden, came again to ask for a receipt.

I informed him we don’t give any such receipts. You paid through UPI, so transaction details are available in the app. 

I also confirmed the token advance received in a WhatsApp text message. You can check once. 

That should be fine.

To which the guy replied, let me check… “Ya. I have those messages. Ok sir”

I asked, “Why suddenly asking for a receipt?”

I had an issue with the PG guy, so I’m asking for it to avoid the same issue here.

Now I remembered why this guy was asking for a receipt.

Don’t worry. I have confirmed payment details in a WhatsApp text message. Keep those. Moreover, once we give the house, we will make a written agreement that contains all the payment details.

The student felt somewhat relieved after listening to my words. 

He waited until the rain stops and left for his PG with his friends.

This type of issue is common in my area. 

Most of the students join PG by giving Advance. Some PG owners play games when students planned to vacate the PG.

I have one such student who is staying in our building. He told me once he lost 15,000rs from one PG owner.

Now that the PG owner blocked this guy’s number to avoid communication with this guy. This student kept quiet from asking for his advance to avoid problems with the PG owner.

He is an outsider… so he doesn’t want any trouble from the local guy.

I guess the upcoming receipt tenant story is similar to this guy’s. 

When the student was ready to vacate, the PG owner created some issue with the advance amount. When he realised his mistake, he came here to avoid the same issue in future.

That’s why it is very important to have proper written communication to avoid such disputes.

In our rental property, all new tenants get detailed written rental agreements. Having such a proper agreement helps avoid disputes at the end stage.

Similarly, When you start house construction, ensure a proper agreement with contractors.

It should include all the important things in writing so both don’t get disputes when issues arise.

After dealing with two different building contractors in our building, I learned a few things about framing a good building contractor agreement. 

I have explained all those important topics in my Building Contractor Guide. However, after receiving a few requests from my buyers for an agreement template, I recently decided to create a Building Contractor Labor Agreement Template. 

This detailed template comes in a Word document, which you can easily modify according to your house construction requirements.

This agreement template is designed for house construction owners to safeguard from potential issues that few contractors make during construction.

Most new users won’t know the issues they face from their building contractor when they start. 

Once the project starts, they will realise their mistakes when they face issues with their contractors.

To prevent Most such issues, having a proper agreement helps.

If you plan to build a house using a labour contract method, here is my recommended building contractor agreement template. 

After the long festival break, I worked on creating products for my customers.

A few days back, I got a few customers requesting a Building Contractor Agreement Template. I avoided creating a template for quite a few days.

After noticing many of my buyers asking the same questions, I decided to sit and do the work for them.

For the past 2 days, I have sat and prepared this Building Contractor Agreement Template.

This is not some random template that you see anywhere else. This is the agreement that I created, putting all my knowledge and experience into it.

Whatever the tips and suggestions I shared in my building contractor guide, I implemented them in this agreement.

This is quite a detailed agreement.

It contains 8 pages of detailed instructions by keeping Owner Favor.

That doesn’t mean I ignored the Building Contractor’s point of view. I take care of them as well.

It’s a balance between the owner and contractor type of agreement. However, the agreement mostly favours the owners’ safety more than the contractor.

Not just that.

This agreement is written in simple English, making it easy to understand and make changes. Moreover, instead of creating a big paragraph of type of text, I created a point-wise. Hence, it’s easier to modify according to your requirements.

If you need to customise anything, it’s very easy to edit.

I’m providing the Word Document. You can download it to your PC and modify the agreement as required.

I highlighted a few places in the agreement. You need to look at those places and make changes to meet your needs.

This agreement comes in the English language. I created two popular versions of the payment structure agreement and will offer both versions for you to play with.

I’m offering this agreement template inside my Building Contractor Guide in the 2.4 section. If you have access to the building contractor guide, please download the latest version of the guide to see the download link.

If you don’t have access, you get it by buying the Building Contractor Guide here:

I still have not updated the Agreement template on the above sales page, but you will get access inside the guide.