Intent To Build Contract

JMO

Does anybody use a contract like this? We need something to use prior to the signing of the actual proposal/final contract. We need someting that we can plug the costs associated with getting to the final price into. Design Fees, Permitting, Surveying etc? Does anybody use one of these? If so, would you be willing to share?

specwood

right.

And my car dealer wants an "intent to buy a car" contract.
My realtor wants an "intent to buy a house" agreement.
How about an "intent to buy the Brooklyn Bridge" contract.

No offense, but who would sign such a document? Would you commit to spending thousands of dollars (or hundreds of thousands of dollars) on a building project without knowing all the details?

bob the builder

If you want to charge them a fee for a design do it, some people do some don't. permit fee I haven't had a problem with, I get the permit after they sign on the job....

Bob

hatchet

When I worked for HP we used a Letter of Intent all the time.... but not for owners/clients... for subcontractors. And it's a legally binding contract. HP knows - they had to back out of one on a project and ended up paying expected profits to the sub.

__________________
Rich
WIT Construction Co.
Superior MT Contractor

Glasshousebltr

You forgot the snipers Intent to shoot contract.

Bob

__________________
Bob

JMO

Well, it is a really simple contract that most large remodelers in my area use. We do primarily large additions and new construction. We always use an intent to build contract. For example, we were approached to build a carraige house for a client recently. The first thing we needed to do was get a variance. We had to get a survey, order plans, have our architect make changes, and obtain building permits. All of this was necessary to determine exactly what we could build on the lot. Our intent to build contract simply states that they agree in principal to construct this house. It outlines the costs that they are responsible for even if they do not build the home... our overhead, the survey, permit fees, plans and architects, etc.

No offense, but who would sign such a document? Would you commit to spending thousands of dollars (or hundreds of thousands of dollars) on a building project without knowing all the details?

No offense, but who would incur all of those costs without some sort of contract.

I take it nobody else uses one... i would never NOT use one

lukachuki

JMO,

I for one see the logic. I just have no need for them as I am still doing small ornamental masonry and not big involved jobs that require time/money/permits/etc before the job even begins.

Tim

JMO

We will sometimes do smaller jobs that we do not require the use of such contract. If its cut and dry, the formal proposal and accompanying contract are sufficient. My advice is to always use a contract of some sort... getting stuck with materials and lost time is not the way to maintain a profitable business.

ABLE1

Not sure the below text is exactly what you are looking for but this is what I have at the end of all my proposals. I have a full contract with the fine print and all that is signed after for final agreement. Just thought I would share. Modify as you see fit. Enjoy.

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The above system(s) will be completely installed and tested to your satisfaction. I will provide the necessary instruction for ease of use. Except for damage as a result of physical abuse, lightning strikes or other acts of nature, all parts are guaranteed for a period of one (1) year from date of completed installation.

Payment Schedule
A deposit equal to 50% of the total sale price will be required with the acceptance of this Agreement in order for us to proceed. The balance of the monies due will be paid upon completion of the installation. All sales tax and freight charges are extra and will be billed as applicable.

ACCEPTANCE OF PROPOSAL
The proposed prices, specifications and conditions as presented within the scope of this proposal are satisfactory and are hereby accepted. FIXIT for ALL, Inc. is authorized to perform the work as specified and agreed to under the Terms and Conditions. Payment terms are agreeable and will be made as outlined in the Terms of Sale. Final authorization of the project is based on the acceptance and full execution of this proposal and master contract document by a duly authorized representative, officer or the prime contractor or individual (as applicable) and an officer of FIXIT for ALL, Inc. Upon receipt of your authorization (signed copy of this proposal) and initial deposit fee, we will return a signed copy of this proposal with a proposed schedule for installation at your location.

Accepted:
__________________________________ ____________________
Authorized Representative Date (Accepted)

__________________________________
Printed Name of Signer

__________________________________ ____________________
FIXIT for ALL, Inc. - Representative Date
John E. Contractor

__________________________________ ____________________
FIXIT for ALL, Inc. - Officer Date (Authorized)

Sincerely,


John E. Contractor
FIXIT for ALL, Inc.

This proposal will be honored for a period of 15 days from above date.

JMO

Good wording ABLE1 thanks. We currently use an ITB contract, I was just looking for what other were using.

jwatkins

I would love to see a copy of your ITB I am thinks of starting to use one for large jobs, mainly because i just designed a 1700 sq ft addition for free. I'm trying to find out if there is any way to stop them from using my designs.