5 Contract Clauses to Demand from Home Builders Park City

Building a custom home is one of the biggest financial decisions most people make—and one of the most complex. The dream can quickly turn into a legal and logistical headache if the construction agreement isn't crystal clear.

That’s why buyers working with Home Builders Park City must ensure their contracts protect their interests from the start. Below are five critical clauses every client should request before signing.

1. Scope of Work With Detailed Specifications

A vague scope of work invites misinterpretation and disputes. This section must go beyond general promises and include exact specifications for materials, design elements, brands, model numbers, finish levels, and square footage tolerances.

Avoiding ambiguity saves time and cost. When a builder and client operate from the same set of expectations, the likelihood of change orders, disputes, and delays dramatically decreases.
Force accountability through specifics. If flooring, cabinetry, or fixtures aren’t specified clearly, the builder can default to cheaper substitutes, which may not align with your expectations.
Request a room-by-room breakdown. For high-value homes, it’s standard to have detailed documentation of how each space will be finished.
Tie payments to defined milestones. A detailed scope allows payment triggers to be based on completion of tangible, inspectable work—not just rough estimates.

2. Allowance and Change Order Clause

Even the most detailed designs will evolve during construction. A strong allowance clause determines how deviations will be handled financially, while the change order clause defines the rules for scope modifications.

Set maximum limits on discretionary allowances. Unchecked allowances often lead to overruns. For example, a kitchen appliance allowance without pricing caps may result in the builder charging you for the highest-end model later.
Establish approval procedures for changes. Any deviation from original plans should require your written approval, with cost and timeline adjustments made visible in advance.
Protect against “surprise upgrades.” Builders sometimes suggest changes mid-project that add to the cost without offering clear value. A robust change order clause puts the decision firmly in your hands.
Include a dispute resolution path. If you reject a change order cost, there should be a process for reaching compromise or escalation.

3. Warranties and Post-Completion Repairs

Custom homes often face post-completion issues such as HVAC balancing, minor cosmetic damage, or appliance malfunctions. These need to be addressed with enforceable warranties.

Demand a comprehensive workmanship warranty. One year is the minimum standard, but top-tier builders offer two to five years for specific systems and structures.
Clarify what's excluded. Builders sometimes exclude landscaping, driveways, or garage doors unless specified.
Request a “punch list” provision. This ensures that you and the builder walk the property together near completion to identify and agree upon outstanding work.
Add time-bound repair clauses. If something goes wrong, there should be a defined response window—e.g., 7 days for urgent repairs, 30 days for non-essentials.

4. Construction Timeline and Liquidated Damages

Delays in construction are common, but some delays are avoidable. Your contract should include a clear project timeline and protection for you if the builder fails to deliver on time without cause.

Include a project schedule with milestones. Weekly or monthly deliverables should be outlined to help you track progress and hold the builder accountable.
Add a grace period for weather or material-related delays, but don’t allow open-ended excuses.
Define liquidated damages. If the project exceeds the agreed deadline, builders should pay a pre-set daily penalty to offset your extra rent or mortgage costs.
Balance fairness with protection. Your contract should not penalize minor schedule changes but must deter negligence or poor planning.

5. Termination and Exit Clause

It’s uncomfortable to imagine a project falling apart, but smart contracts account for it. A strong termination clause lets both parties understand how to exit cleanly if needed.

List breach scenarios explicitly. Missed deadlines, budget overruns, or violations of code can trigger termination. The clearer the list, the less room for ambiguity.
Secure ownership of the work completed. If the project is terminated midway, you should retain the rights to all plans, permits, and partially completed work.
Outline refund procedures and final accounting. If prepayments were made, the contract must explain how unused funds will be returned.
Include dispute resolution options. Arbitration or mediation clauses provide a roadmap in case negotiations break down.

Additional Tips When Reviewing Builder Contracts

While these clauses form the foundation, the full contract should be reviewed by a construction attorney with local Park City experience. They’ll understand unique zoning regulations, building codes, and weather-related risks that should be reflected in the agreement.

Get everything in writing. Verbal promises about timelines, costs, or upgrades mean nothing without written documentation.
Negotiate before signing. Builders are more open to adjustments before contracts are finalized, not after construction begins.
Watch for hidden legalese. Terms like “builder’s discretion” or “subject to availability” can give contractors too much leeway.

Conclusion

Without robust contract terms, even the most stunning custom home project can spiral into delays, miscommunication, and legal disputes. That’s why discerning buyers must insist on protective clauses tailored to their build and budget. It’s not about mistrust—it’s about risk management. Reputable builders know this and welcome the clarity these provisions bring. If you're interviewing a Luxury Home Builder Park City, ensure they not only accept these terms—but expect them.