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Gulf Islands Realty Ltd. P.O (gulf Mante Brtfttooob Real Estate WEDNESDAY, NOV. 16, 1988 • PAGEC1 With three basic types of home construc­ ed procedure for handling disputes. tion contracts, it is important for the The builder will provide a list of home-builder to choose the one best suited materials to be used — this should be to his or her needs, and to understand the included in the contract, along with any process of preparing a contract. materials the owner plans to purchase. If Building contract extras are purchased by either party during According to the New Home Warranty Program of B.C and the Yukon, it is not construction, these should be included. necessary to obtain a lawyer for every step Although often ignored during construc­ of the contract process. By preparing tion, the above area is the most common certain parts on his or her own, the cause of disagreements. homeowner can save legal fees. But one options available The builder will also provide a list of could be inviting disaster by choosing to sub-contractors and their involvement in the perform the task without the benefit of any construction process. legal aid. Next, a completion date should be Of the three basic contract types — settled on and stated, along with deficiency owner as contractor, fixed price contract, dates. Simply stated, this provides a date and cost-plus contract — the New Home by which the builder will have cleared up Warranty program recommends against loose ends. the first. In this contract type, the owner is To this point, the contract is fairly easy. responsible for hiring and organizing all Greater details are needed from here on; aspects of construction. This can cause however, if time is taken, it should not problems if the owner has only a sketchy present any difficulties. understanding of construction and sub- The next step is to list everyone's trades, and could end up in court. obligations and liabilities. A fixed price contract is usually safe and Normally, the contractor is responsible economical. A builder is hired to undertake for security and theft control and insures all organization. An exact price and all this at his contract expense. It is also details are agreed to beforehand. To enter normal that he be responsible for damage into this type of contract, however, the to neighbouring property and any negli­ owner must know exactly what is wanted. gence on the part of sub-contractors. He The third basic type, a cost-plus con­ will usually obtain all necessary permits tract, allows a fixed fee for the contractor, and liability insurance at the owner's ^r a fee plus percentage of costs. Any expense. .-^extras that arise could cost more than The contract should state that if, for any anticipated. reason, another individual must be hired to Once the owner and builder have do the work, the owner has the right to do decided on the best contract for the so. It should also give the contractor the situation, there are several steps which right to stop work if he is not paid must be undertaken before the contract is according to previously agreed-upon completed. terms. The first step is to obtain a lawyer who The final price agreement should include can draft a special contract or recommend taxes, insurance, worker's compensation, the use of a standard, prepared contract, permit fees, any deposits held in trust, and modified for individualistic needs. salaries or percentages being paid out. Another method is to hire a retired or The payment schedule is next. This semi-retired contractor on a consultancy section should state how and when the basis. This individual can help steer the builder will be paid, and whose responsib­ owner in the right direction. ility is it to pay the sub-contractors. It The contract should include the formal should include a detailed payment schedule, contract, all drawings and specifications, bank draw dates and amounts, interest all bids and final estimates, and local laws provisions, bank hold backs, and proof of governing the building of the home. All payment to subtrades. A provision for initialled change orders and written notices housing expenses should be included in jof changes in hired trades should be case the owner cannot move in at the •^^/•Jicluded. anticipated time. The prime ingredients of a formal Details such as these should be worked contract are: out in advance with the banker and builder. • a full description of the work to be Consultation with a lawyer is recom­ undertaken (including drawings and spe­ mended to assure all matters are in order. cifications considered uncomplicated by If the owner has been thorough, time spent the builder); with the lawyer should be minimal, and the • how and when the work will be paid for; costs lower. • price; and It is common for people to mistakenly • method for resolving disputes. assume contractors are not experienced in Next, definitions should be provided. legal matters. Most are well-experienced Define who the owner, contracter, architect and knowledgeable regarding legal mat­ and sub-contractors are. Explain who will who will interpret specifications, and who (i.e., another builder or independent ters relevant to their trade and the owners' be responsible for describing deficiences, will settle disputes over interpretations contractor). Arbitration is the recommend­ situation. Your guide to /^m. ••FN—< Gulf Island properties COMPLIMENTS OF: FINDERS GUIDE P«g. C2 GULF ISLANDS DRIFTWOOD Wedneiday. Nov. 16. 1988 cordially invited... to look inside this real estate special section where you'll find a group of great, professional real estate experts advertising and offering guidance and tips to help you make a better choice when you're ready to buy your home. Wednmday, Nov. 16. 1988 GULF ISLANDS DRIFTWOOD Page C3 GULF ISLANDS REALTY LTD. P.O. Box 750, Ganges, B.C. VOS 1E0 — PHONE (604) 537-5577 INVESTMENT/BUILDER'S PUT YOURSELF IN THIS BOAT ISABELLA PT. RD. COTTAGE PRICE REDUCTION — LOG MANOR HOUSE ON VIEW LOT BECAUSE: $69,000 MLS. HOME NEAR ST. MARY LAKE WATERFRONT ACREAGE 1 /2 ac. no thru road, arable, treed, perc tested. Best price in view category, $29,900. SATURNA ISLAND: WATERFRONT - $39,6007 Yes, believe itl Parklike, due south exposure and sunny and level. * It's attached to a substantial dock One of the few inexpensive Features: Approx. 1000' complete with diving board and ... waterfront properties available. This well-built lot home has loads waterfrontage; pastures; garden; Near walk-on beach, this well built View whales, freighters, marine timber; pond; creek; guest cottage; * It's attached to some 130' cottage offers recreation, of room, including^^-oom that activity from this lovely setting frontage on Cusheon Lake on a could ijjw»j^al«»yTraft room, views. This 22 acre property has retirement or starter home (NOTE 1987 PRICE). much to offer - the comfortable part natural, part landscaped in possibilities on .44 ac. with large studio oQJrgeextra BR. (20'x 16'). rock terraces .84 ac. lot and ... plus 3 BR„ large living room. SUNRISE COTTAGE-REVENUE and spacious home is adaptable sunny deck, easy care grounds. for B & B, a large family or for * It's attached to a large 3 BR. entertaining off-island visitorsl (2375 sq. ft.) family home which "ESTATE LIKE" 100 HILLS For details, brochure and viewing, has a West Coast flair on the PUT YOURSELF BEHIND THIS HOME $139,000 MLS. call JAN. $349,000. outside and an old world charm on COUNTER the inside and there's a fully self- CREEKS. 3 POND SITES — contained suite as well and ... IDEAL HOBBY FARM SITEI * For $133,000 you and your Rarely do you find: arable soil, family can become attached to it meadowland, timber, parked out tool (MLS.) Income now - build your view areas, creek with 3 pond sites, on home later. Enjoy Eagle's territory 5 acres located just minutes from MANSELL ROAD ACREAGE - 10 acres of Salt Spring's FINEST Ganges. Ideal site for grade-level 3.36 southern exposed acres with VIEWS. Bonus - 600 sq. ft. guest entry into solar oriented home some sea views. Driveway is cottage. Choice of bldg. sites for overlooking "the kingdom" - already in to the homesite. Located on .90 ac. completely your DREAM HOME - $85,000. $55,000. FINANCING TOOI Membership in neighbouring Yes, you too can produce these fenced and private, Master bdrm. Maracaibo would give access to fine bakery products with a wing with access to solarium plus i VIEWS ATOP MT. BELCHER 1 tennis, swimming lagoon, good minimum of training — this bake- fireplace, large living rm. with 4 /2 acres of privacy, seclusion and moorage and nature walks. off unit is available for sale. It is in attached conversation section CHEAP! views. Ideal estate setting. "Perc $49,500. a good traffic location and offers with fireplace, large guest tested". $55,000. $64,900 MLS. FULFORD HARBOUR VIEWS good hours for the new owner. bedroom, office. For your free catalogue, call Only $39,900 MLS. I JAN MACPHERSON 537-9894 REDUCED TO $89,900 MLS. ST. MARY LAKE ESTATE GOLFER OR LOG HOME $297,500 MLS. OWNER INVITES OFFERS III SUNSET DRIVE OCEANVIEW Large bright rooms, 2 bdrms., and An exceptional 2.43 acre property den up, possibly 2 bdrms. down. with views into Fulford Harbour Brick fireplace, hardwood in liv. and Mt. Bruce with potentia I for an rm. even greater view when more trees are removed. There'll be a THE ULTIMATE! southerly exposed area of arable Bounding on S.S. Golf Course Rare opportunity. Main house soil when cleared. There's a small property, this fine log home offers 3600 sq. ft.
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