Contracts

Before proceeding with construction of your new home or remodeling project, you and your builder or remodeler should sign a contract. A well written contract will clearly define the expectations for both you and your builder and should cover, in writing, how most issues are handled. The Dallas BA offers standard form contracts to all of its builder members. These contracts are updated every two years upon adjournment of the Texas legislature or more frequently if case law requires.

An express home warranty is perhaps the most important feature of the contracts provided by the Dallas BA. An express home warranty clearly defines how the home is to perform and the scope of what is and is not covered in case a problem arises after completion. Most other residential contracts lack this vital feature.

The questions on this page are the ones most frequently asked and addressed by owners contemplating either new construction or remodeling projects. Please note that these are general answers and are not to be construed as legal advice or an interpretation of the specific terms of your contract. We strongly advise you to consult a licensed Texas attorney before signing any legal document.

If there is a problem, do we have to go to court to resolve it?

Form contracts provided to Dallas BA members state that if the parties cannot resolve a dispute or disagreement among themselves, disputes or disagreements will be decided according to arbitration rules with an arbitrator. This typically results in a much less expensive process that better facilitates getting the necessary work or repairs completed.

Are there certain clauses of special concern?

Yes. One clause typically found in contracts that should be of special concern to the owner is a clause that states that all prior negotiations, understandings or agreements, no matter what may have been discussed or agreed upon previously and orally with the contractor, are not part of the contract unless they are stated in writing within the terms of the contract.

Another clause that should especially concern the owner is a clause that provides that the contractor is not responsible for unforeseen circumstances. This clause is very common in remodeling contracts. It means if the contractor encounters difficulties on the job that he did not anticipate, the owner may be required to pay an additional amount of money to the contractor to cover these unforeseen conditions.