Building a new home in Georgia involves more than choosing a floor plan and finishes. Your construction contract can affect what you pay, when the work should be completed and how the builder handles changes or problems.
Before you sign, review these key provisions.
1. Price and payment terms
Confirm the total price, required deposits, payment milestones and how allowance overages will be handled. Also review whether the contract addresses lien waivers and releases as payments are made, which can help document payment to contractors, subcontractors or suppliers.
2. Materials and project details
Make sure the contract identifies important materials, finishes and construction specifications. Clear descriptions can help you understand what the builder has agreed to provide and reduce disagreements over substitutions or upgrades.
3. Start dates, completion dates and delays
Review the expected construction schedule and any provisions addressing delays. Check whether the contract provides for a final walk-through or punch list, which identifies unfinished or defective items that the builder must address. The contract may explain how weather, supply shortages, permit issues or other events can affect the completion date.
4. Change orders and added costs
Construction plans can change after work begins. Check how you and the builder must approve changes to the scope, price or schedule. Written change-order procedures can make it easier to track additional costs and revised expectations.
5. Warranties and dispute procedures
Georgia rules require licensed residential contractors to provide a written warranty with contracts for covered residential construction work. Review what the warranty covers, excludes and how long it lasts.
Also check how the contract handles disputes. Some agreements require arbitration rather than court litigation. Georgia’s Right to Repair Act also establishes a prelitigation process for construction defect claims. Generally, you must give the contractor written notice at least 90 days before filing a lawsuit.
Make sure the contract reflects your agreement
A construction contract determines more than what each party promises to do. It also establishes who bears responsibility when expectations do not match the finished project. If a provision is unclear or difficult to interpret, legal guidance can help you understand its effect and identify terms that may need clarification or negotiation before you sign.
