20 Key items every custom home building contract should include

A solid contract with your custom homebuilder is one of the most important protections you must have when building a new home. It should cover both legal protections and practical construction details to ensure your custom home build flows smoothly.

Core Contracting Elements

1) Plans and Speculations – Every new home build has multiple generations of plans and specifications, make sure the contract identifies a set of plans by date and specifications that must be used for construction.

2) Change Order Process – Clear process for modifying plans including pricing, written approval and time delays if any.

3) Project Timeline – Estimated time to build the project without delays like weather or change orders.

4) Contract Price – Total cost of construction or cost-plus budget with a line-item budget for the lender.

5) Payment Schedule – Draw schedule tied to project milestones

6) Downpayments/Deposits – Many builders will require a deposit to be taken at time of contract to place your project in their schedule. This deposit typically runs between 5% and 15%. Additionally, many large budget items like cabinets and appliances require deposits when ordering.

7) Financing Terms – Details on the construction loan or homeowner financing responsibilities

Construction Process and Quality Assurance

8) Builders Responsibilities – Supervision, permits, inspection, compliance with codes should all be addressed.

9)  Owner Responsibilities – making timely selections and payments, communication protocol.

10) Standards of Workmanship – National and local building codes, ATSM etc. standards defined

11) Project Staffing – Full time or part time project supervision?

Protection and Risk Management

12) Insurance and Liability – Builders general liability, workers comp, builders risk insurance. Coverage, deductibles all outlined.

13) Dispute Resolution – Mediation or arbitration dispute resolution procedures if conflict arises

14) Default and Termination – What each parties responsibilities are and what happens if a party breaches it.

15) Owner Builder Meeting Cadence – How often will you meet and receive updates from your builder.

16) Identification – A clause where the builder agrees to protect the owner from certain legal claims.

17) Warranties – Structural, workmanship, manufacturers warranties all spelled out .

18) Final Inspection and Homeowner Orientation – A procedure where the owner inspects the home one last time and the builder orientates the owner on all the systems in the house.

19) Delay of work or payments – What happens if the builder delays working on the project or the owner delays payment.

20) Homeowner Maintenance Requirements – A custom home is compromised of many sophisticated systems that require outgoing maintenance requirements make sure you review these with your builder and have this information in writing.

Summary

Build your dream home with confidence—Rivendale Homes delivers quality custom homes in Austin, Texas, combining modern elegance and exceptional craftsmanship. Our team is dedicated to guiding you through every step of the process, from selecting the right lot to final walkthrough and beyond.

Ready to start your custom home journey? Contact us today at Rivendale Homes to schedule your consultation, and let’s make your vision a reality!