Learn It:
Not all contracts are created equal. The type you sign determines how your costs, risks, and flexibility are managed.
Common types include:

• Fixed-Price (Lump Sum): One set price for the entire project. Predictable but less flexible for changes.

• Cost-Plus: You pay actual costs plus a contractor’s fee or percentage. Transparent but requires trust and tracking.

• Time & Materials: Hourly labor plus materials. Flexible, but costs can escalate.

• Design-Build: One entity handles both design and construction for faster coordination.

Log It:
☑️ Identify which type your project uses.
☑️ Write a one-sentence summary in your Detail Page → Legal Section.
☑️ Save a copy of the contract labeled clearly by type in your Digital Home Manual → Contracts Folder.

💡 Tip: Knowing your contract type early sets realistic expectations for cost and change management.*

Learn It:
Every valid construction contract should spell out the essentials — the who, what, when, and how much. Missing or vague details cause most disputes.

Log It:
☑️ Double-check that your contract includes:
 • Project address and clear description of work
 • Start and estimated completion dates
 • Total contract value and payment schedule
 • Change order procedures
 • Warranties, insurance, and bonding information

☑️ Save supporting documents (permits, insurance certificates, schedule) in subfolders.
☑️ Highlight or comment on any unclear terms and ask for clarification before signing.

🟩 Pro Tip: The Contractor Checklist includes editable “Contract Audit Sheets” to confirm all required elements are in place.*

Learn It:
Clarity prevents conflict. Your contract should clearly state who is responsible for what — from permits to cleanup.

Log It:
☑️ Review the “Responsibilities” section of your contract and confirm who:
 • Secures permits
 • Manages subcontractors
 • Carries insurance and liability
 • Handles inspections and approvals

☑️ Add this breakdown to your Project Summary Page in your manual.
☑️ If any tasks aren’t defined, ask your contractor to clarify in writing.

💡 Tip: Always know who carries risk — that’s who should hold insurance.*

Learn It:
Contracts aren’t just for when things go right — they protect you when they don’t.
Knowing how disputes are resolved can save you time, money, and frustration later.

Log It:
☑️ Review these sections in your contract:
 • Mediation, arbitration, or court procedures
 • Notice requirements for default or termination
 • Timelines for resolving disputes
☑️ Copy key language into your manual’s Legal Reference Page for easy access.
☑️ Keep notes on your contractor’s policies for communication and issue resolution.

⚖️ Tip: Most legal issues arise from unclear notice or payment timelines — document every major communication.*

Learn It:
Good record-keeping is legal protection. Your contract isn’t one file — it’s a collection of documents that tell the story of your build.

Log It:
☑️ Create a folder labeled “Construction Contracts” in your Digital Home Manual.
Include:
 • Signed main contract
 • All addendums and change orders
 • Insurance certificates and bonds
 • Subcontractor or supplier agreements (if applicable)

☑️ Update it each time a change order or amendment occurs.
☑️ Back up your folder in both Google Drive and your local storage.

💼 Tip: A complete contract file prevents misunderstandings and supports you legally if a dispute arises.*

Key Takeaway

Your construction contract is more than paperwork — it’s the rulebook for how your dream home becomes reality.

When you understand it, organize it, and track it, you transform from a passive client into an informed homeowner who protects every dollar and decision.

🟩 The Contractor Checklist gives you ready-to-use templates, change order logs, and contract trackers to keep your entire project legally tight and easy to manage.

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