The Foundation For A Successful Project
The Ins and Outs of a Clear Construction Contract
Clear Construction takes pride in understanding our clients’ desires and making them a reality. Our commitment to excellence starts from the very beginning: writing contracts.
Agreed upon by the client and general contractor, a contract is a blueprint for all aspects of a project. It becomes the scope of work that guides both parties through construction. A quality agreement is the foundation for success. Here’s what to expect during Clear Construction’s process:
Meeting With The Client
Every project begins with meeting you and learning about your project’s unique circumstances. We explore your specific vision, discuss your budget requirements, and start strategizing.
Design Feasibility Agreement
The next step after our first meeting is the Design Feasibility Agreement (DFA) - the first contract in our process. The purpose of the DFA is to help you determine if the prospective project is feasible in terms of cost, time, and design. The DFA deliverables are a preliminary budget, schedule, scope of work, and concept drawing.
If the project is feasible and you wish to move forward, you’ll enter the next phase of further design and planning, which begins with the Design Agreement (DA).
Design Agreement
The Design Agreement is a contract that lists the overall costs of design and permitting, including any relevant outside consultants such as engineers, surveyors, or licensed professionals. A signed DA launches our team - in close collaboration with you - into the design and pre-construction phase of your project. The DA delivers a detailed scope of design work, developed construction plans, and all permits necessary in order to break ground. By reviewing these deliverables and understanding costs in advance of construction, you can make an informed decision about whether or not you would like to move forward with Clear Construction as your general contractor.
Construction Agreement
Next is the Construction Agreement - the final phase. Bringing your vision to life, our team defines the scope of construction the same way we define the scope of design: detailed and precise.
Our estimators refine the preliminary budget created during the DFA and DA process - adding costs for additional scope, replacing previous estimates for work with subcontractor pricing, and value-engineering the project to meet your requested budget. The budget can be structured in two ways: Fixed Price or Guaranteed Maximum Price.
Fixed Price vs. Guaranteed Maximum Price
A Fixed Price Contract is a set price, including only the work described in the scope of work and budget. In addition, it includes a fixed contingency line item, incorporated into the total contract price. The payment schedule is made up of predetermined amounts that are billed based on milestones during construction.
The second kind is a Guaranteed Maximum Price Contract. This includes the work described in the scope of work and a Control Estimate of costs. There is a flexible contingency line item, used only as needed to compensate for changes in pricing for the contract work. In this contract, the payment schedule is monthly, based on costs incurred to date. Client invoices have all receipts, timesheets, and subcontractor invoices attached.
Fixed Price Contracts involve simpler invoices. Additionally, the client is well-prepared for invoices because the price is predetermined based on project milestones. Because of our experience in the construction industry, and the software we use, we can quote Fixed Price with confidence.
Guaranteed Maximum Price Contracts, allow the client to pay costs over time rather than based on a predetermined payment schedule and ensures the costs for their project are for work rendered.
Here For You When You Need Clarity
Our contracts are precise, thorough, and transparent. Keeping our clients informed and empowered to make the best decisions for their project is our priority. In contrast to competitors, Clear Construction contracts offer detailed services from concept to completion. Our mission is to bring clarity and efficiency to construction, and this starts from the very beginning of our work together.