What to Ask Before Signing a Home Construction Contract
A solid contract lays the foundation for a smooth home build. Before you commit to a custom home builder, it’s important to understand what you’re signing and what’s at stake if key details are missing. Whether you’re building your forever home or a vacation property in Minnesota, asking the right questions can help you avoid confusion, budget overruns, and schedule delays.
Contact us today if you’re ready to talk about building your dreams!
1. What’s the Timeline and What Happens If It Slips?
Delays happen, but they shouldn’t leave you in the dark. Your home construction contract should include:
- A projected start and completion date
- Clear milestones for progress (e.g., framing, roofing, finishing)
- Allowances for weather or permit-related delays
- A clause defining what happens if deadlines are missed
Ask your builder: “How will you communicate delays, and what’s the process for adjusting the timeline if something changes?”
2. How Are Payments Structured?
A reputable contractor will never ask for full payment up front. Instead, your agreement should detail:
- The total cost of the project
- The down payment amount (often 10–20%)
- A schedule for progress payments tied to completed work
- Accepted payment methods and timelines
Ask your builder: “Can you walk me through each payment phase and what I’ll be paying for?”
3. What Are the Allowances, and Are They Realistic?
An allowance is a budgeted amount for materials like flooring, fixtures, or countertops. But if it’s too low, you’ll end up paying out of pocket for upgrades. Look for clarity in:
- What the allowance covers
- How overages are handled
- Whether you can select your own vendors or brands
Ask your builder: “Are your allowances based on current market prices and homeowner preferences?”
4. How Are Change Orders Handled?
Most homeowners make at least one change during the build. Your contract should define:
- The formal process for submitting change requests
- How changes are priced and approved
- How those changes will impact the timeline
Ask your builder: “What’s your typical turnaround time for processing change orders?”
5. What Warranties Are Included?
A trustworthy Minnesota builder should stand behind their work. Check whether the contract includes:
- A workmanship warranty (typically 1–2 years)
- A structural warranty (often 10 years)
- Manufacturer warranties for installed products
Ask your builder: “If something goes wrong after move-in, how do I file a warranty claim?”
6. Is the Builder Properly Licensed and Insured?
This might seem obvious, but always verify credentials. Your custom build contract in MN should state that the builder:
- Holds an active Minnesota contractor’s license
- Carries general liability and workers’ compensation insurance
- Will obtain all necessary permits for your project
Ask your builder: “Can I see copies of your license and insurance certificates?”
Confidently Sign with a Trusted Builder
Building your dream home is one of the biggest investments you’ll ever make. By asking the right home construction contract questions now, you’ll protect yourself from costly surprises and help ensure the build stays on track.
At Harren Companies, we take pride in clear, detailed contracts that reflect our commitment to transparency, communication, and quality craftsmanship throughout Minnesota. We guide clients through every step in the home-building process, from the contract to design decisions.Contact us today to discuss a home construction contract!
