New Home Construction Agreement - Cost Plus (Canada)
Agreement between a contractor and an owner of a property to build a new home for the costs paid by contractor plus a percentage.
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This specific agreement is designed for those situations where the contractor is paid for his actual costs plus an additional amount or premium (the costs multiplied by a percentage, e.g. 15%). This agreement also sets a maximum limit on the commission/premium amount the contractor can receive.
This form can be used in the following provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan and Yukon.
New Home Construction Agreement - Cost Plus (Canada)
Product Details
| Product | New Home Construction Agreement - Cost Plus (Canada) |
| Country | Canada |
| Pages | 11 |
| Dimensions | Designed for Letter Size (8.5" x 11") |
| Printer compatibility | Designed to print on all ink-jet and laser printers |
| Editable | Yes (.doc, .wpd and .rtf) |
| Format |
Microsoft Word |
| Platform |
Windows Compatible Mac Compatible Linux Compatible |
| Availability | In Stock. Instant Download |
| Usage | Unlimited number of prints |
| Category | Construction & Contractor Agreements |
| Product number | #28707 |
| Download time | Less than 1 minute (approx.) |
| Document Access |
Via secret online address Email with download links Email with attachment upon request |
| Refund Policy | 60 days, no-questions asked, 100% money back guarantee |
Frequently Asked Questions
A cost-plus construction agreement is a contract where the contractor is reimbursed for actual costs incurred during the construction process, plus an additional fee or percentage. This structure allows for flexibility in pricing, accommodating changes in material costs and labor.
The maximum limit on the contractor's commission ensures that there is a cap on the additional fees the contractor can charge. This protects the property owner from unexpected cost overruns and provides a clear financial framework for the project.
Yes, this agreement is designed for use in multiple provinces across Canada, including Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan, and Yukon.
The project specifications attachment should detail the specific requirements and features of the home to be built, including materials, design elements, and any other relevant construction details. This ensures both parties have a clear understanding of the project scope.
The agreement should outline provisions for delays, including how they are to be communicated and any penalties or adjustments to the timeline. This helps manage expectations and provides a framework for addressing unforeseen circumstances during construction.
Is This Form Right For You?
Use This Form If:
- Individuals who are looking to build a new home and prefer a flexible payment structure may find this agreement beneficial. It allows for actual costs incurred by the contractor to be reimbursed, plus a percentage, which can accommodate fluctuating material prices.
- Situations requiring a clear outline of responsibilities between a contractor and a property owner can utilize this agreement. It ensures that both parties understand the terms related to project timelines, payment schedules, and specifications of the home being built.
- For those who wish to establish a maximum limit on contractor fees, this agreement provides a safeguard. It helps property owners manage their budget effectively while still allowing for quality construction through a cost-plus arrangement.
- Contractors who prefer a cost-plus payment structure may use this agreement to formalize their relationship with property owners. This document clarifies the financial terms and conditions, ensuring transparency and trust throughout the construction process.
- Homeowners in provinces across Canada can take advantage of this agreement to ensure compliance with local construction laws. It serves as a legally binding document that protects both the contractor's and owner's interests during the home-building process.
Do Not Use If:
- – This agreement is not appropriate for fixed-price contracts where the total cost is predetermined. In such cases, a different type of agreement that outlines a set price is more suitable.
- – If the project involves a significant amount of risk or uncertainty regarding costs, a cost-plus agreement may not be ideal. Property owners may prefer a fixed-price contract to avoid unexpected expenses.
- – For small-scale projects or renovations, this agreement may be too complex and detailed. Simpler contracts may suffice for less extensive work, reducing administrative burden.
- – In situations where the contractor and owner do not have a trusting relationship, a cost-plus agreement may lead to disputes over costs. A more transparent pricing structure might be necessary in such cases.
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