How to Negotiate With Your Building Contractor

Whether you’re building your dream home or just a few renovations, it’s important to know how to negotiate with your building contractor. The right skills can make a big difference in the overall outcome of your project and can save you money, time and stress.

A construction contract that is crafted to serve the interests of both parties and protects both will be a win-win for everyone. The key is to be creative, flexible and willing to compromise.

Know the Scope of Work

A construction scope of work is an important document that describes the project expectations and responsibilities of each party involved. It helps avoid disputes and ensures projects stay on schedule and within budget.

The scope of work should include everything you expect the contractor and subcontractors to do and a timeline for completion of the work. It should also outline what materials you need and who will be responsible for completing each task.

This will help you to ensure that everyone on your team is aware of their obligations and responsibilities, and that the contractor and subcontractors are working towards the same goals.

Scope of work templates can be found online, but it’s often best to customize them to your specific needs and goals for the project. This way, you can ensure your residential construction project gets off to a solid start.

Know the Options

When negotiating with your building contractor, know what your options are. If the list price is too high, you can ask the contractor to rethink the project so that it meets your budget. If there are certain building materials that are more expensive than others, you can talk to the contractor about pricing those out and lowering them from your quote. Also, you may be able to get an escalation clause included in your purchase agreement to account for any changes in building material costs or delays due to supply chain issues. This is something you should work with an experienced agent to avoid, as many builders are adding unrealistic escalation clauses into their contracts.