A construction contract is one of the most critical documents in any building or renovation project. It outlines expectations, costs, timelines, responsibilities, and protections for both the homeowner and the contractor. But for many BC homeowners, construction contracts can feel overwhelming and packed with unfamiliar terms.
At NRGTEK Construction, we believe every client deserves clarity and confidence before signing anything. This guide breaks down the key sections of a BC construction contract and explains what you should look for — so you can make informed decisions and avoid costly misunderstandings.
1. The Scope of Work (What’s Included — and What Isn’t)
This section clearly defines the work the contractor will perform. It should be detailed, specific, and easy to understand.
A solid scope of work includes:
- Description of tasks
- Materials and finishes
- Project phases
- Inclusions and exclusions
Tip: If something is not written in the contract, assume it’s not included. Always clarify any gray areas.
2. Project Timeline and Milestones
A proper BC construction contract should outline:
- Project start date
- Estimated completion date
- Key milestones (e.g., framing, electrical rough-ins, inspections)
- Contingencies for delays (weather, permit issues, supply shortages)
Look for: A realistic timeline and a clear explanation of what happens if delays occur.
3. Total Cost and Payment Schedule
Financial clarity is essential. Your contract should specify:
- Total project cost
- Deposit amount
- Progress payments (linked to milestones)
- Allowances (budget ranges for items like fixtures or appliances)
- Cost overruns and how they will be handled
Most BC homeowners don’t realize: Payments should always be tied to completed work — never ahead of it.
4. Change Orders (What Happens When You Change Your Mind)
Changes happen, especially in renovations. A construction contract should include a straightforward process for:
- Requesting changes
- Approving added costs
- Updating the timeline
- Signing off before new work begins
Warning: Avoid any contractor who performs extra work without written change order approval.
5. Permits and Inspections
The contract should state who is responsible for:
- Applying for permits
- Scheduling inspections
- Ensuring building code compliance
In most cases, the contractor handles this — but it must be documented.
6. Warranties and Guarantees
A trustworthy contractor provides warranties on both:
- Labour
- Materials (if supplied by the contractor)
BC homeowners should look for clarity about:
- Warranty length
- What is covered
- What voids the warranty
NRGTEK Construction offers clear artistry warranties to ensure peace of mind long after the project is complete.
7. Insurance and Liability Protection
To protect both parties, the contract should detail coverage such as:
- General liability insurance
- Workers’ compensation insurance (WorkSafeBC)
- Builder’s risk insurance (for larger projects)
Never proceed without proof of insurance in BC.
8. Termination Clause
A fair contract specifies the circumstances under which either party can terminate the agreement.
Look for:
- Required notice
- Financial responsibilities at termination
- Dispute resolution options
This protects you if communication breaks down or unexpected issues arise.
9. Dispute Resolution
Contracts should specify how disagreements will be handled, such as:
- Mediation
- Arbitration
- Legal action
Having this outlined in advance prevents complications later.
Why Understanding Your Contract Matters
A well-written construction contract protects both the homeowner and the contractor — ensuring transparency, accountability, and a smooth project experience.
At NRGTEK Construction, we take the time to walk our clients through every detail of their contracts. No jargon. No surprises. Just clear expectations and quality artistry.
Planning a Project in BC? We’re Here to Help.
Whether you’re building a new home or renovating an existing space, our team ensures every project starts with a transparent, fair, and thorough contract.
👉 Contact us to learn more or request a consultation today.
NRGTEK Construction — Transparent. Reliable. Built on trust.
